11 Ways to Prepare for a Double-Dip Recession

Posted: July 6, 2010 in Networking, Real Life, Your Lifestyle

This is Marc Turner again and I wanted to make sure that I share this information with all my Readers.

Just Finished Reading this important information and I truly Believe that this is what is going to have to happen soon.

What are 11 ways to Prepare for a Double – Dip Recession?

1.Save more – It might sound obvious, yet Americans aren’t doing it. Economists believe that Americans should save 6 to 10 percent of their income after taxes, to rebuild wealth and prepare for retirement. Yet the savings rate is a paltry 3.4 percent, as consumers struggle to control the mighty urge to buy.

2.Make backup plans – Yeah, you might be out of the woods, but if the economy turns south again, employers could trim staffs, cut pay, and reduce hours all over again. So make contingency plans for what you would do if you lost 20 percent of your income, or 50 percent.

3. Stay liquid – Your rainy-day fund won’t do much good if you can’t tap into it, or if you’ll lose money by being forced to sell stocks or other investments. Even though interest rates on cash accounts are near zero, you should still keep a cash cushion in case something goes wrong.

4. Get smarter – Once employers do start to hire again, they’re going to be extremely selective since they’ve got a huge pool to choose from. Distinguish yourself now by getting more schooling or training, boning up on technology, and studying the issues facing your industry.

5. Start something on the side – As long as your employer approves, it can’t hurt to do freelance or consulting work on the side, start a small eBay business, or build a website showcasing your skills and accomplishments. If you unexpectedly lose your day job, you’ll have something to fall back on. In most cases your Employer will not but you need to think of who’s best interest is on the Line.

6.Wait – You might be dying to replace your aging car or upgrade to a more comfortable home. But put it off a little longer if you can. Money “invested” in a home or car is hard to tap into if you suddenly need it, and besides, it will probably still be a buyers’ market a year from now.

7. Resist the lure of cheap energy – Energy prices are low, but there’s a good chance they’ll go back up whenever the economy strengthens and demand for energy increases. So if you do buy a new car, home, or anything else that consumes energy, factor in fuel prices that will probably be higher than they are now

8. Postpone retirement – You might be able to retire on schedule, but working another few years and adding to your nest egg can’t hurt. Take consolation from the fact that many of your fellow Americans will end up doing the same thing—partly because they can’t afford to retire, and partly because official retirement ages are likely to go up.

9. Downsize – If you’re planning any big changes, think small. If you have to move for a job, can you make do with one less bedroom or a smaller kitchen? Will a four-cylinder car be just as good as a six-cylinder? Probably.

10. Stop speculating – If you’re playing the stock market today, be prepared to lose what you gamble. The bull market that began in March 2009 appears to be over, and those nagging debt problems in Europe are a dangerous wild card that could trigger a panic with little notice.

These are just a Few Things that we need to take into consideration and understand that without a Plan B nd changing the way we think and live, there will be no recovery. I am saying this because it is True and it will happen if we as a People do not change the Way of thinking.

Do not Trust the Government – Washington rode to the rescue in 2008 and 2009, with bailouts and subsidies that kept the recession from being a lot worse. But federal coffers are tapped out, and state and local governments are cutting services and raise taxes. So get used to it: You’re on your own.

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