How to Prepare for a Recession

Who knows what lies ahead so a bit of preparation never hurt. The following tips may help endure a possible recession, depression or other unforeseen calamity. It never hurts to be prepared.

Steps

  1. See a financial planner for advice and assistance on how much money to save for family emergencies. A good rule of thumb is to stash away at least three months salary as a financial cushion. [1]
    • Use the fund to help for living expenses in case of a job loss, pay for emergency car or home repairs, or unexpected medical expenses.
  2. Save 10 percent of your monthly paycheck to help build up your financial emergency cushion.
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  3. Tally both assets and debt. Subtract the two and the result will be your net worth.
    • Assets: Home, car, savings, savings bonds, money market funds, mutual funds are all examples of assets.
    • Liabilities: Charge card debt, outstanding bills, outstanding mortgage balance, car loans and property taxes are all examples of debt.
  4. . If you are fortunate to have plenty of cash, spread the wealth. Deposit money in various bank accounts at different banks. Most bank accounts are insured up to $250,000 through the Federal Deposit Insurance Corporation (FDIC). Be sure to open accounts in separate banks as accounts are insured by bank not by bank branch. Credit unions offer up to $250,000 per savings account if they participate in the National Credit Union Administration insurance program. The $250,000 insurance coverage is scheduled to end December 31, 2009. The NCUA insurance program is much like the bank FDIC program.
  5. Expect loan and credit card interest rates to rise, so reduce debt. [2]
    • Set aside some money in a safe location at your home or office. A stash of real cash may come in handy when you least expect it.
  6. [3]
  7. Recycle or reuse .
    • Learn to mend clothing . Sewing a button, mending a ripped knee or inserting a zipper can extend the life of clothing.
    • Share "hand me downs" clothing for kids. Selectively buy new clothes such as buying a new shirt to spiff up a pair of hand me down pants. Choose to buy only certain items new such as shoes or a new winter coat.
    • Shop at the thrift shop or at yard sales when ever possible. Both can be a shopping treasure trove that won't break the piggy bank.
    • Choose to use reusable containers, such as canning jars, to store items. Canning jars can be purchased at thrift shops, yard sales, or new at most general merchandise department stores.
    • Save food containers. Many food containers can be recycled to hold foodstuffs. Some good examples would be using pasta jars or large coffee creamer containers. The pasta sauce jars can hold all types of foodstuffs such as beans, rice or pasta. They can also be used to hold sewing supplies such as buttons. Cardboard coffee creamer containers can hold homemade drink mixes such as hot chocolate.
    • Wash and dry plastic food storage bags. Do not save and reuse food storage bags that had meat stored inside the bags.
  8. [4]
    • Purchase clothing off season.
    • Purchase well made clothing as it tends to last longer.
    • Select clothing coordinates.
    • Shop using sales ads.
  9. [5]
    • Save energy by turning off lights, turning the heat down when appropriate, reducing water usage.
    • Use LED bulbs.
    • Purchase power strips that can turn off all electronic equipment using a single switch. Using these specially designed power strips help save the loss of "forgotten" energy.
    • Do laundry the old-fashioned way. Wash clothes and hang them up to dry. Wash full loads of clothes using cold water to save the most money.
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Method 1
Method 1 of 4:

Cleaning Tips

  • Use homemade cleaning supplies such as baking soda or vinegar to reduce costs. [6]
  • Make your own laundry detergent to save even more money.
  • Wash windows as clean windows will allow more light to come through which will save on the electric bill.
  • Dust the light bulbs to help light come through.
  • Replace the heating and air conditioning unit filter using manufacturer's directions. Most filters should be replaced monthly. Check your manual to confirm.
Method 2
Method 2 of 4:

Food Budget

  • Shop using grocery ads. [7]
  • Shop no more than once a week.
  • Cook from scratch. [8]
    • Make your own food mixes. Food mixes save both money and time.
    • Learn to pinch pennies while menu planning. Both the $45 Emergency and $70 Low Cost food plans are located at Hillbilly Housewife.com [1] The files are available in PDF format and are free to anyone as long as the person using the materials does not charge a fee for their use. The Hillbilly Housewife is a great source for low cost meal planning and cooking ideas.
    • Learn to cook basic recipes . Old-fashioned recipes like grandma used to make are your best bet for thrifty cooking. Try Old Recipe Book.com [2] for old time recipes.
  • Use up leftovers.
  • Grow a garden . Learn to freeze or can what you grow. Swap garden produce with a neighbor for something you need. [9]
  • Save seeds for next year's garden. Participate in the Seed Savers Exchange [3] located in Decorah, Iowa. Heirloom seeds are saved and exchanged by fellow gardeners.
  • Start a food pantry.
    • An adult eating 2,200 calories requires approximately 2 1 ⁄ 2 US quarts (2,365.9 ml) water per day. Take this into account when setting up a food pantry. The Department of Defense recommends 2 gallons (7.6 L) of water per day per person should be stored. [10] A three day supply is recommended and if there is room for additional storage plan on a two week water supply.
  • *Read topics on pantry and water storage at the Utah State University Extension website. Some pantry basics would include flour, sugar, rice, pasta, canned meats and fish, canned fruits and canned vegetables. Select foods your family would enjoy eating. Be sure to rotate food supplies so they don't spoil before use.


Method 3
Method 3 of 4:

Supplies to Keep Around the House

  • The following supplies may disappear fast, if things get real tough:
    • Heaters
    • Firewood
    • Matches
    • Propane tanks and stoves
    • Gasoline containers
    • Solar oven
    • Batteries
    • Camping equipment
    • Baby supplies
    • Hygiene products
    • Soap, shampoo, laundry detergent.
    • A 72 Hour Emergency Supply Kit
Method 4
Method 4 of 4:

Good Books to Read

  • Carla Emery's The Encyclopedia of Country Living - Everything you ever wanted to know about farming and country living.
  • Square Foot Gardening by Square Foot Gardening by Mel Bartholomew.
  • Betty Crocker Cook Picture Cook Book 1951 or 1956 editions. The 1951 edition will tell how to prepare the chicken including plucking the feathers.

Community Q&A

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    What is a 72 hour emergency supply kit?
    Donagan
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    A collection of items to help you survive without help for three days: water, non-perishable food, a blanket, and a first-aid kit.
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      References

      1. ↑ https://www.nerdwallet.com/blog/banking/emergency-fund-calculator/
      2. ↑ https://www.cnbc.com/2019/06/04/heres-a-millennials-guide-to-surviving-an-economic-recession.html
      3. ↑ https://www.vice.com/en_us/article/9kmm95/recession-survival-guide
      4. ↑ https://redefinedmom.com/frugal-clothing-tips/
      5. ↑ https://www.energy.gov/articles/top-11-things-you-didnt-know-about-saving-energy-home-summer-edition
      6. ↑ https://financesonline.com/6-ways-to-save-money-on-cleaning-supplies/
      7. ↑ https://www.webmd.com/food-recipes/features/10-ways-save-money-food-shopping#2
      8. ↑ https://money.usnews.com/money/personal-finance/spending/slideshows/how-to-save-money-when-grocery-shopping-on-a-budget?slide=10
      9. ↑ https://www.webmd.com/food-recipes/features/10-ways-save-money-food-shopping#4
      1. ↑ https://extension.colostate.edu/disaster-web-sites/water-storage/
      2. http://web.extension.uiuc.edu/toughtimes/making_the_most.cfm

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