How to Survive a Recession

 
Whatever our income has been in the past, most of us are now learning how to survive a recession. If you are in your 20s – 40s this may be the first time you have had to deal with the fear and life changing circumstances that a recession brings. If you are a member of an older generation, you have memories of when things were even more difficult, the great depression, or you have heard the stories from your parents and grandparents. The best way to know how to survive a recession is to learn from those who have not only survived, but thrived, through even tougher times. Recession survival depends on making changes in almost every area of life.

For many, surviving a recession has a lot to do with your housing situation. If you have a mortgage you can no longer afford, you should immediately contact your bank and see what help is offered. If you have a mortgage with a good interest rate, and you can afford the payments, it is best to ride out the recession where you are. The tax deduction for interest paid is still a good benefit for owning rather than renting. If the house payment is difficult to make, consider renting a room or sharing your home, and expenses, with other family members who are also struggling. Learning how to survive a recession is often about learning to share resources.

New habits can also save on transportation costs. An old car, which is paid for, is a wonderful resource. The occasional repair bill is almost always less than a monthly payment would be. If you have never car-pooled, now is the time to start. If you can ride the bus or other form of public transportation, do it. Can you bike to work or even walk to work? Share a ride with a friend or family member to go grocery shopping or do errands. You’ll save on gas money and get some good time together as well.


As for shopping, surviving a recession means we will do much less spending and far more saving. Forget buying anything you don’t have the cash to pay for. Credit cards should be cut up or put where you cannot access them. Learn the difference between wants and needs. Survival is about meeting needs and those are pretty basic. Keeping a roof over your head and food on the table is primary. Don’t spend on other consumer goods unless you are sure basics are secured.

Here are some recession survival tips:

• If you actually do need something, think first about free or cheap places to acquire what you are looking for. Barter websites and websites that offer free items are easy to find these days. Thrift shops and yard sales are a wonderful antidote to the consumerism mindset that has created a mountain of debt for so many.
• Learn to repair the things you have rather than purchase new items. Skills that were common a few decades back are more rarely practiced now. There’s never been a better time to learn to sew, knit, repair cars, do our own home repairs, make home-cooked meals with inexpensive ingredients, and grow some of that food in our own gardens.
• Tough times do not need to be depressing times. Cut out expensive means of entertainment and get together to play a board game. Have a picnic in the park. Instead of paying $5.00 for a cup of coffee in a coffee shop, make a pot of coffee and invite the neighbors over. Share a potluck meal with friends.

Surviving a recession means letting go of some things to gain other, maybe more valuable, things. There can be joy and a sense of pride in learning how to survive a recession. While you are looking out for yourself and your family, take notice of the needs of your friends and neighbors as well. Learn together how to get by in simpler ways and how to survive a recession. You may never want to go back to the "old" ways.

Share with those who are in difficult circumstances. Give some of the food you buy to a food shelf. Contribute, even small amounts, to charitable organizations. Give something you no longer need to someone who does need it.