That's a mistake, says Benz. Next page: You aren't necessarily done with your kids after college. It's much harder to survive a major downturn without a paycheck. Even a part-time job at minimum wage can be a lifesaver if it helps you cover your basic living expenses without having to withdraw from a shrinking nest egg in a bear market. Don't retire until you're confident you could pay your essential expenses for at least two years without having to tap your stock investments, says Steve Vernon, research scholar at the Stanford Center on Longevity.
The surest way to achieve that goal is to boost your Social Security benefit by delaying your application. Social Security is guaranteed monthly income that doesn't fall when stocks do — and it lasts for your lifetime and your spouse's lifetime. Other sources of income that can help you survive a bear market without a paycheck include money market funds, certificates of deposit, short-term high-quality bonds and fixed-income annuities. Many of us already knew that, of course — but the Great Recession really drove it home.
Faced with the worst job market in decades, more than one-third of recent college graduates decided to return to school; and almost one-quarter of them took an unpaid job or moved back home with their parents.
We're hardwired to help our children. But it's vital to figure out how much financial help you can give without compromising your own security — and to communicate that reality to your kids, says financial planner Blayney. If your kids' college years still loom on your horizon, create a college budget that doesn't increase your debt or eat into your retirement savings. One option: two years at a community college, then transfer.
If your college graduate is a boomerang baby, expect him or her to contribute to your household expenses. You won't be alone: Of those ages 25 to 34 who live with their parents or moved back home in bad times, 48 percent say they've paid rent. The Great Recession touched a lot of people across the country. Did you feel the effects? Do you know someone who was hit particularly hard? Get tips and resources to protect yourself from fraud and see the latest scam alerts in your state. Exclusive program for members from The Hartford. You are leaving AARP. Please return to AARP.
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Share with twitter. Share with linkedin. Share using email. Just because you can qualify to borrow money doesn't mean you should The Great Recession was triggered by the collapse of an enormous credit bubble — a bubble fueled by institutions so eager to lend that they lowered their standards to qualify more borrowers.
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Now is not the time to slack. Show up early, stay late, and volunteer for projects. Pick up the slack for other workers; it's what will happen when people get laid off, anyway, so now is the time to prove yourself.
The Great Recession Is Still With Us
Look for ways to save your employer money, especially if you see your employer doing little things to that effect, like encouraging employees to turn of their computers. Try to quantify your efforts in terms of how you've raised profits and cut costs. Start networking so that in case you still get laid off, you have a safety net of contacts who might be able to help.
Focus on cutting your expenses, as described in the previous step, and consider volunteering ; if you've got the spare time, there are organizations that will need your help, and you could establish good karma in your community. Keep saving. If you can, fit saving into your budget, even during a recession. You should make every effort to continue contributing to retirement accounts and college funds, if you have them. If you don't have the money to contribute, consider cutting out other expenses to make it work. When you come out of the recession, you'll be glad you kept up with saving and your accounts will reflect the interest you've earned during that time.
In addition, putting money into the stock market during a recession can be a wise move. If you buy stock in reputable companies when prices are low, you stand to gain a lot of money when they come back up out the recession. Enjoy life. In order to avoid recession depression, don't let fear control you. An intense feeling of paranoia can make you an inflexible employee and also strain your relationships.
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Be thankful for what you have, and make sure to have fun. Instead of not taking a family vacation, for example, take a Staycation or exchange your home for free accommodation instead. Invite your family to think of creative ways to save money without skimping on happiness. Accept difficult times as a challenge for your fortitude and adaptability.
Develop a risk management plan. If you haven't already done so, create a plan for what to do in the event of a recession. This risk management plan should include a set of actions you plan to take in the event that you lose business or customers due to an economic downturn. After all, it will be easier to think of what to do before a recession that in the heat of the moment as your employees are panicking and unsure of what to do. Make sure to create concrete steps to follow and then transmit the plan to other managers or partners so that they can follow it as well.
Your first course of action when hit by a recession should be to cut expenses where you can.
This will help your business stay in operation while you work out a more permanent solution or until the economy recovers. Look around to reduce overhead costs like utilities, administration, and wasted materials. You can also reduce your inventory levels so that your assets aren't so tied up in product that may go unsold for months. If those don't work, consider: Cutting your advertising spending.
Pull out of traditional advertising like television and radio and instead focus on improving your social media presence. Doing so is free, even though it might take more of your time. Your other option to downsize. This can mean either reducing employees or moving to a cheaper location. Your remaining employees may have to work harder, but your business will at least be able to survive. Cross-train your employees. If you do end up letting some employees go, you will need others to step into their roles.
This is why it is important to cross-train your employees for various roles within the business. This is best if done before it is needed. Focus on customers. You should focus all of your efforts on retaining regular customers and maintaining your relationships with them. Make sure that they know that their business is appreciated.
Great Recession Survival Strategies: How do Slate readers get by when personal income dwindles?
In addition, keep your quality just as high as before, even it you've had to make other cuts around the business. A recession is also a good opportunity to evaluate your customers. You may have those customers who are not profitable to work with. A recession is the perfect time to sever these relationships and seek new ones.
Don't cut your prices. Many businesses turn to deals and sales when the recession is hurting them. However, doing so will only make it harder for customers to justify paying your regular prices when the recession is over. In addition, these lower prices can cut into much needed profits. The only exception is that you may want to offer one-time payment extensions or discounts to customers that are also having a hard time. Just be clear to them that you are only extending this service once. Can investing in the agricultural sector like local food processing, rearing of animals help in gaining and surviving of recession period?
The ag sector of an economy is typically a good investment, because food is always In demand. If the economy is in recession, yet you have investable funds available, that means you're already surviving the recession. Yes No. Not Helpful 1 Helpful 2. The fact that an economy may be in recession should not greatly affect one's investment decisions. Recessions end, but good investment choices continue to reward over the long term. In fact, if a recession causes the price of a good investment to go down, that's the time to buy even more of it.
The best place to invest is always a high-quality company.
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