Ontario, Canada, May 14, 2009 --(PR.com
)-- The recession has many people worried about money. To help relieve some of the financial stress, the authors of http://www.financial-advice-for-beginners.com have shared 6 recession busting financial tips that are sure to help people get their finances on track so they can start breathing a little easier.
Budget – Budgeting will help ensure that more money isn't spent than what is coming in every month. This is especially important because it helps to avoid accumulating debt. With budgeting, it's also possible to allocate some money to go into savings each month so that an emergency fund can be created and larger purchases can be made without having to use credit or debt to do it.
Cut Spending – This is part of the budgeting process. Watch where the money is going each month, then look for ways to reduce costs to make sure that spending is in line with your income. A lot of money can be saved just by making coffee and lunch at home instead of buying it everyday. There are also lots of websites out there with frugal living ideas to help people reduce their spending.
Pay Off Debt – As debts are paid off, financial security is being built and money is being freed up that would usually be going towards those monthly payments. If someone is struggling to make their monthly payments, they should seek help from a credit counselor or financial adviser. If someone is currently able to meet their debt obligations, the easiest way to get their debts paid off without having to spend any extra money is to use the snowball method.
First, don't accumulate any new debts. Second, keep making the monthly payments until one of the debts is paid off. Third, take the money that was going toward the debt that was just paid off and apply it to another debt on the list. Fourth, as each debt is paid off, keep applying the money that was freed up to the next debt on the list.
Build a Financial Cushion - Once the debts are paid off, it's a good idea to start allocating money each month to go into a savings account. Ideally people should aim to save the equivalent of about 6 months of pay. This savings account will be a financial safety net should they suddenly lose their income.
Protect Against Financial Tragedy – Making sure that the right amounts and types of life, auto, home and health insurance are in place will protect families from financial difficulty should the unexpected events of life occur.
Earn Extra Income – Picking up a part time job, or starting a part time business is an excellent way to help firm up a financial situation. The extra money can be put towards helping to meet the monthly expenses, building a financial cushion, or paying off debts.
By implementing these recession busting financial tips today, people can be well on their way to alleviating recession stress.
Visit http://www.financial-advice-for-beginners.com to learn more about budgeting, eliminating debt, insurance, saving money and building wealth.