Dealing with Recession

Introduction Due to economic slowdown , many companies do cost cutting by removing their employees. The employees need not worry about how to sustain their life. All they need to do is to spend less , reduce debts , etc. from the initial stage and save money in banks , which will be very useful in miserable situations. The person who is master in these techniques can lead the same life as before , when there is a slight dip in the economy. We know the proverb that taking small steps in the initial stage makes a big difference in your life. Save money for better future Saving money when the budget is tight is a bit daunting task for every individual , since you will have some unforeseen expenses in that month and could not save any money by the end. To start saving the money , you need to take yourself out of the equation. After receiving the salary , use the auto -draft feature to transfer the amount you would like to save , from your checking account to the savings account every month without delay , though you have any extra expenses for that month. The bank will manage all the particulars easily. After getting a promotion or hike , you need to super -size your life -style and savings too. Either use 4 0 1 K to increase your savings or use auto -draft to transfer the extra amount to your savings. The income that is accessible is spent for all our needs , so , it would be better to save your money in another account instead of checking account. Since , you need to go to another bank to withdraw the amount , which makes you feel hassle in using that amount. Two saving tools that keep your money out of your view are CDs and saving bonds. One more wonderful idea of saving money is to save change , this might sound like a new idea , but it is actually the old one that is followed by our ancestors. Save your change in a jar every night and transfer that money to your savings account. Don ’t spend money on unnecessary things instead save them such as if you are spending more money on rebate offers , then try to put that money in saving account , here you will not lose any money instead save them and receive a savings statement to your mail. Many other needs that may affect your financial status include health issues , job loss , house repairs , car repairs , etc. So , open an emergency fund to use it for these expenses , you can save the amount you would like to in this fund. However , it all depends on your capabilities. Just question yourself about how much amount you would like to save in emergency fund to feel safe. First jot down all your monthly expenses such as food , utilities , paying interest on debts , insurance , transit costs and other must pay bills and calculate your monthly expenses and multiply these expenses with the number of months you want to put away for your emergency fund. For instance , if your monthly expenses are around $ 1 5 0 0 and you want to save for three months , then you have to save $ 4 5 0 0 for your emergency fund. After figuring out the amount to be saved , you have to choose where exactly you want to save the money such as savings accounts , money market account , short run CD, etc. these accounts are easily accessible , brings liquidness and gives some interest at the end of the month. If you think that emergency fund takes a lot of time to exist , it is fine , but opening it in the initial stage would benefit you a lot. Just go through your monthly expenses and find the amount you can save for emergency fund , you can put a little amount aside if you cannot afford it. Various ways to save your money and reach your goal You can find various ways to save your money and reach your goal quickly. Cutting down the unnecessary expenses on the things does not mean that you have to sacrifice all the things in your life.