Episode # 427  Our Money, Inflation And Recession, Tips And Strategies To Make It Through

Are YOU feeling the effects of today's inflation?
The media tells us that the economy is better than it has been in yours, but our wallets are telling a different story.
And,... it may get worse before it gets better.
Many economists are saying we could see a recession.
In this episode we talk about some strategies that could help us be prepared, not only for today, but in case we do have a recession.

In today's ever-changing economic landscape, it is crucial to understand how to navigate potential pitfalls such as inflation and recession.
These economic challenges can have a significant impact on individuals, businesses, and even entire nations.
In this episode, we’ll explore some practical tips to help you avoid the negative consequences of inflation and recession.

Summary:
     Diversify Your Investments
     Stay Informed
     Build an Emergency Fund
     Control Your Spending
     Seek Professional Advice
 
     Controlling our spending is the hardest to do, so that’s where we will spend most of our time on this episode.


#1
To guard against recession: Diversify Your Investments
One of the most effective ways to protect your finances from inflation and recession is to diversify your investments.
Different asset classes, such as stocks, bonds, real estate, and commodities, can minimize the risk of losing everything if one sector takes a hit.

#2
Stay Informed
Knowledge is power when it comes to economic trends.
Stay updated on the latest news, economic indicators, and government policies that may impact the economy.
By being well informed, you can make better financial decisions and adjust your strategies accordingly.
 
#3
Start by Build an Emergency Fund
Having an emergency fund is essential to weathering economic storms.
Aim to save at least three to six months' worth of living expenses in a separate account. This fund helps provide a safety net during times of recession or unexpected financial hardships.
 
#4
Get Control of Your Spending
During periods of inflation, prices tend to rise, and the purchasing power of your money decreases.
It is crucial to control your spending and prioritize essential expenses.
Avoid unnecessary debt and focus on building a sustainable budget that aligns with your financial goals.
Let us recommend two books by Dave Ramsay"
     “Financial Peace.”
     "Total Money Makeover" 
These books will help you get a handle on finances, help you get out of debt and save money for the future.


Twelve tips to help us control our spending:

Create a Budget:
Start by tracking your income and expenses to create a realistic budget.

This will help you understand where your money is going and identify areas where you can cut back.
There are digital budgeting systems but I like the old fashioned paper based systems, personally.

Check these on Amazon:
     Paper planners

Differentiate Between Wants and Needs:
Prioritize essential expenses over discretionary ones.
Distinguish between what you truly need and what you simply want, and allocate your funds accordingly.

Set Financial Goals:
Establish short-term and long-term financial goals.
Having clear objectives will motivate you to control your spending and save for the things that matter most to you.

Avoid Impulse Buying:
Before making a purchase, take a moment to consider if it aligns with your budget and financial goals.
Delaying non-essential purchases can help you avoid impulse buying.

Plan Meals and Shop Smart:
Plan your meals in advance and make a shopping list to avoid impulse purchases.
Look for sales, use coupons, and consider buying in bulk to save money on groceries.

Comparison Shop:
Research prices and compare options before making a purchase.
Take advantage of price comparison websites and apps to find the best deals.

Here is one that I like:
     pricebat.ca
There are many more.

Use Cash or Debit Cards:
Paying with cash or using a debit card can help you stay within your budget.
Avoid relying on credit cards
It can lead to overspending and racking up debt

Track Your Expenses:
Regularly review your expenses to identify any unnecessary or excessive spending.
Use budgeting apps or spreadsheets to keep track of your transactions

Regularly Review Subscriptions and Memberships:
Assess your subscriptions and memberships regularly. Cancel those that you no longer use or find alternatives that offer similar benefits at a lower cost.

Avoid Retail Therapy:
Instead of using shopping as a way to cope with stress or emotions, find healthier alternatives such as exercise, hobbies, or spending time with loved ones.

Delay Gratification:
Practice delayed gratification by waiting before making non-essential purchases. This will give you time to evaluate if it's a necessary expense or simply an impulse.

Negotiate and Seek Discounts:
Don't be afraid to negotiate prices or ask for discounts, especially for big-ticket items. Many retailers are open to negotiation, and you may end up saving a significant amount.

Remember, controlling spending is a gradual process
Be patient with yourself
Celebrate small victories along the way

By implementing these tips, you'll be on your way to achieving financial stability and reaching your goals.


#5
Seek Professional Advice
Consider consulting with a financial advisor who can provide personalized guidance based on your specific circumstances.
They can help you develop a comprehensive financial plan that takes into account potential inflation and recession risks, and aligns with your goals.

 
[The Bottom Line]
We won’t completely avoid the impact of inflation, or recession when it happens, but these tips help us control our money rather than having it control us.
Diversifying your investments, staying informed, building an emergency fund, controlling your spending, and seeking professional advice, will help us through these rough times of inflation and recession.

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