_________________________________________________________________________________

Most economic analysts are inferring that Americans are now facing a recession with its influx of shrinking profits, rising unemployment, and soaring prices.

What will we do?

Some will continue to keep their proverbial head in the sand and ignore the ramifications of this turndown in the economic cycle and pretend it will not affect them. After all, it never did before.

Really…When was the last time you experienced a recession? For most of us the year would be 1975. Yes, there were mini-recessions in 1981 and 1990, but these by no accounts matched the veracity of the turbulent era of President Jimmy Carter. How old were most of us in 1975? The average working class person is 25-65 years old so this means on the average you would have to be in your mid-fifties to have felt the dramatic affects. Thus most of us have never experienced a deep recession.

Therefore we would do well to consider some survival techniques just in case they are required during the course of the next few years. Uh, did you say…The next few years?

 

 

 

"How bad could things get? A wave of adjustable-rate mortgage resets hits in January-June of 2008. It’s possible housing prices will decline 30% from their peak. That’s as much as they fell from 1925 to1933, the low point of the Great Depression. "

Tips for Survival

Obtain a fixed rate mortgage: Duh! Get out of that adjustable-rate (ARM) loan.

Renters should try to buy the home they’re renting because investment homes aren’t in line for possible lender relief for some over-extended homeowners.

Fix your credit and obtain a FICO, mid-score of at least 680. This means the medium score of the three reporting credit bureaus Trans Union, Equifax and Experian combined in one credit report. If you already have a 680 aspire for a 720 score.

Spread your investment bet: It’s best to invest across the board. That means money markets, bonds, and stocks of every type.

Streamline your debt: Put away the plastic and start paying with cash. By so doing you can use the difference to build up your cash reserves. In a recession cash is king.

Start your own business: If you don’t have any ideas of what to do, or you don’t have enough time to devote to a start-up enterprise. Try Multi-Level Marketing as a tool of diversification. It’s part-time, offers substantial income possibilities, and tax deductions.

Avoid a lay-off by improving the quality of your work. This is the time to throw off the business casual clothes, come in early and leave late, ask for extra assignments and show your boss you’re a team player. Learn the skills of those around you so you can do their job too. Make yourself a MVP so you become the mainstay of the team.

Worst of the worst: Be prepared to lose your job. No, you probably won’t lose it, but are you prepared for the worst? If not, get busy and update your resume, search job boards, take seminars on the latest information in your field, find out what skills employers are seeking, get involved in a industry association for networking purposes.

Shift your paradigm and don’t do anything stupid: Don’t start a cannabis club out of desperation or sell your valuable coin collection. Remember “When one door closes, another will usually open.”