Across the world, manufacturing is slowing or declining and unemployment is mounting as are home foreclosures. In Washington we have skyrocketing debt, a falling dollar and political gridlock while in Europe, the debt crisis threatens the European Union as the economies of Portugal, Ireland, Italy, Greece and Spain are already crumbling. Japan is struggling to recover from the earthquake and tsunami while even in China, manufacturing is slowing and a real estate bubble is brewing. If you haven't yet taken protective action, please start now. And if this piece offends you, I apologize for its intent is not to upset you but to help you. Here are 7 steps you can take:
1) Slash your overhead. Pay down your credit card balances for the interest costs can eat you alive. If you are already buried in credit card debt, contact those credit suppliers and negotiate a payment plan and possibly even a forgiveness of some of that debt. And if you own a home, contact your local government to reduce your property valuation, which will drop your taxes. If you must sell that home, consult a real estate professional but price it to sell now, as in most areas, prices are falling. Run a yard sale to convert to cash things you no longer use. What doesn't sell donate to charity, which will help someone else get cheaply something they need and it will give you a tax deduction.
2) If your credit is still strong and you own a home with equity in it and a mortgage on it, and intend to stay, if you haven't yet done so, please refinance that mortgage on a 30 year fixed rate basis taking advantage of the lowest mortgage rates since the 1950's. If on the other hand, you must leave your home, perhaps you can move in with family or friends and pay them some rent. This is not a pleasant choice but it will slash your costs and provide income to someone near and dear to you.
3) Set up a part-time business to make money on the strongest of your skills. This will not only give you extra income but a paycheck in the event you lose your job. One such business, especially for underpaid or unpaid mothers could be to become licensed in childcare and offer a childcare service.
4) If you are fortunate enough to have a full-time job, cross train so that you have more to offer your employer. And take classes to enhance your job skills.
5) To cut your food bill, become a coupon clipper, join store clubs and also shop the discount giants like Costco and Sam's Club. And locate your nearest food bank. To reduce your medical costs, join a pharmacy discount club at Wal-Mart, CVS, etc. or negotiate lower prices with a small druggist. Negotiate as well with your doctor and your local hospital. In hard hit areas, hospitals will often provide a huge discount if you pay cash at the time of your treatment.
6) Barter. For example, if you grow fruits and vegetables, trade some of your bounty for what you need such as to compensate someone to paint, fix or do other handyman work for you.
7) No matter what happens, please enjoy each day of your life. It doesn't cost anything to smell a rose or to feel the sunshine or to check out a good book or movie from a library. And offer others a smile and a helping hand. That too costs nothing and will help to uplift the world around you. Together we will eventually get through this financial mess engulfing us all.
Dick
Thank you to my friend and webmaster Jon Barnes for his suggestions, which were incorporated into this piece.
No comments:
Post a Comment