Anson County Cooperative Extension January 21, 2009

^The ANSON BIZ-ZINE
WADESBORO, ANSON COUNTY, NORTH CAROLINA, U.S.A.

Extension in Anson Tips to Help Recession-Proof Your Life January 21, 2009
Even if you have steady, gainful employment at the world's best university, you may still need to make a few lifestyle adjustments to get through the recession. Thanks to Dr. Carolyn Bird, an assistant professor of family and consumer sciences at NC State University, here are a few tips for weathering the economic storm. Making your life recession-proof involves three things: conserving cash, reducing spending and increasing reserves. Conserving cash and reducing spending go hand in hand. According to Bird, this is a good time to reduce unnecessary expenditures. If you pare down your budget today, you will be in a better position to handle the unexpected - like your son or daughter moving back in – without going far into debt. Sit down and look at all your household expenses and organize them into tiers. The first tier includes things you could eliminate from your budget now without missing them too much. Examples include: A subscription service like satellite radio. An expensive brand of cosmetics. Movie channels you rarely watch. The second tier includes things you do not necessarily need, but really want.	Eliminating some of these might change your lifestyle. But the money you save could help you build a financial safety net. Second tier items might include: One or more telephones if there are multiple telephones in the house. DVDs, books and CDs. Eating out. The library has plenty of books, and even lends out DVDs and audio books, so it is not like you will never be able to read another novel or watch another movie. It really comes down to thinking about needs versus wants. After you have identified and eliminated some of your unnecessary spending, it is important to hold onto that extra money. As a general rule, you should have three to six months of living expenses in reserve. The best policy is to save 10% of your income every month. If you cannot do that, try 3%. Then, in a few months reevaluate and see if you can increase it. You may also find savings in unlikely places. Families should make sure they are taking advantage of all the tax credits they are entitled. Avoid using credit cards, but if you do, pay them off every month. You can save a lot by avoiding interest and late payment fees. Janine Rywak County Extension Director

Extension in Anson

Tips to Help Recession-Proof Your Life
January 21, 2009

Even if you have steady, gainful employment at the world's best university, you may still need to make a few lifestyle adjustments to get through the recession. Thanks to Dr. Carolyn Bird, an assistant professor of family and consumer sciences at NC State University, here are a few tips for weathering the economic storm. Making your life recession-proof involves three things: conserving cash, reducing spending and increasing reserves. Conserving cash and reducing spending go hand in hand. According to Bird, this is a good time to reduce unnecessary expenditures. If you pare down your budget today, you will be in a better position to handle the unexpected - like your son or daughter moving back in – without going far into debt. Sit down and look at all your household expenses and organize them into tiers. The first tier includes things you could eliminate from your budget now without missing them too much. Examples include:

A subscription service like satellite radio.
An expensive brand of cosmetics.
Movie channels you rarely watch.

The second tier includes things you do not necessarily need, but really want.

Eliminating some of these might change your lifestyle. But the money you save could help you build a financial safety net. Second tier items might include:

One or more telephones if there are multiple telephones in the house.
DVDs, books and CDs.
Eating out.

The library has plenty of books, and even lends out DVDs and audio books, so it is not like you will never be able to read another novel or watch another movie. It really comes down to thinking about needs versus wants. After you have identified and eliminated some of your unnecessary spending, it is important to hold onto that extra money. As a general rule, you should have three to six months of living expenses in reserve. The best policy is to save 10% of your income every month. If you cannot do that, try 3%. Then, in a few months reevaluate and see if you can increase it. You may also find savings in unlikely places. Families should make sure they are taking advantage of all the tax credits they are entitled. Avoid using credit cards, but if you do, pay them off every month. You can save a lot by avoiding interest and late payment fees.

Janine Rywak
County Extension Director

RETURN to TOP

RETURN to ARCHIVE MAIN PAGE

RETURN to HOME PAGE