Thrive Not Survive: Best Practices to Make it Through a Recession Successfully

It looks like the global economy is entering a recession – once again. Many people are struggling to make ends meet, particularly as the cost of living is increasing exponentially. But would you like to go above and beyond surviving – and thrive during this period? If so, keep reading as we share essential strategies to thrive during a recession!

Cut Back

This seems like essential advice, but it will be critical to cut back on unnecessary expenses during this time. Take a close look at your spending habits and costs and try to cut back on the non-essential expenses like dining out and entertainment. This will give you more wiggle room for the important things like better managing your household budget or rent. If you’re struggling with cutting back, you may want to use budgeting apps or software that helps you stick better to your financial goals. Another option is to transfer a certain percentage of your paycheck to another account so it can’t be spent unnecessarily. 

Pay Off Outstanding Debt

Have pre-existing debt? It is best to pay this off as quickly as possible, as those interest rates will add up during an already financially difficult time. This will be all the more critical in cases where the outstanding debt is high-interest. In addition to paying off your debt, try to be smart about your credit usage. If you must use credit, only charge what you can afford to pay back.

Avoiding using credit cards unless you can pay off the balance in full each month will also be a smart financial move. In addition, make a list of all of your debts, starting with the smallest balance and working your way up to the largest. Once you have your list, start making payments on the smallest debt first, while still making the minimum payments on your other debts. This will give you a concrete strategy that will help you tangibly reduce your debts in a streamlined manner. 

Consider Moving

Approximately 250,000 Americans have moved in the last year or so, JCHS reports. A big reason for this moving pattern is the rising cost of living in bigger cities and states. A great way to cut back on expenses in a significant manner is to move to a smaller town or less expensive state.

Do lots of research on the cost of living in different areas (you can even use a cost of living calculator to make your decision easier) before making the big move. If you need moving services, you can connect with local movers. However, be sure to read reviews online and then get a quote to discuss your needs with a moving company. You can also offset moving costs by opting for companies that offer deals or credits. 

Pursue Your Dream Business

According to Digital.com, over 43% of Americans have toyed with starting their own business. If this sounds like you, now may be an excellent time to pursue your dreams. Although recessions can be hard on companies, you may be able to run a profitable business during this time by following recession-proof entrepreneurship ideas.

When looking for the right business idea, consider options that will stand the test of time and always be in demand. For example, childcare is an evergreen industry in which people will always want to invest. Similarly, getting into accounting services may be a good option, especially if you optimize it for the digital space. Lastly, consider security services as the need for security will always be on the high end. 

Finding Part-Time Work

Recessions are often accompanied by cutbacks and even lost jobs. Even if you’re continuing your old career happily, you may find the need to boost your earnings a little bit. This can help you make ends meet and maintain your current standard of living.

Before seeking a new position, work on your resume and update it for use. You can easily create a stellar and professional-looking resume by using a free online resume template. Simply choose from a library of professionally designed resume templates, and add your own photos, copy, colors, and images! A free resume builder will be how to get ready to find part-time work. Be sure to look for a position that works with your current work schedule and isn’t overly taxing for your personal life or day job. 

Manage Financial Anxiety

At the end of the day, money is critical for survival. If you’ve been dealing with financial worries for a while now, you are likely feeling stressed or anxious. Try to look for ways to manage these feelings, as prolonged periods of stress can lead to burnout. It is thus important to stay positive and focus on things you can control. Practicing gratitude for everything you have will be an excellent way to do this.

In addition, wellness practices like mindfulness and meditation can go a long way in helping you feel grounded and secure through this turbulent time. If you can carve out a zen corner or nook in your home to unwind, be sure to do so, as this can help foster feelings of relaxation. Decorate the space with candles and soft pillows to make a little corner of peace for yourself. Exercising and working out is another excellent strategy to shake off any underlying stress or anxiety. 

Recessions are times of great difficulty for most people. At the same time, we’ve been through many recessions. We will likely go through many more – and there are many strategies to thrive during these tough economic times. Be sure to stay positive, focused on your goals, and creative with your methods, and you’ll be sure to weather out this storm! Consider all strategies, including starting a reception-proof business and potentially moving to come out stronger on the other side.