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Recession Survival Guide: Strategies for Financial Stability

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Todd Tressider over at   www.financialmentor.com   introduced this concept to me and it makes me wonder. We’ve seen many recessions and stock market crashes come and go over the years, from the 1998 tech boom-and-bust, to the 2008 housing bubble crash, to the three month so-fast-you-probably-missed it COVID-induced recession of 2020. Recessions are a normal part of economic development, and one thing we have always seen in that the market goes up again. I’ve always believed that the best thing to do when these times hit is to sit tight, roll with the punches, and just wait it out until the market inevitably rises again. The basics of personal finance never change, and they will always help position you, regardless of what the future holds. But there are a few things that are different this time, that are making me wonder if things will take longer than usual. In the past,  governments had a strong hand in managing economic slumps , using corporate bailouts and interest ra...
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What should I do with my Tax Refund?

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Got a refund coming? Awesome! This is a stellar opportunity to leap-frog ahead in your financial planning. Up your financial literacy and use some strategic thinking.  1. Debt Reduction Strategy: Credit cards, department store cards, and “payday loans” are some of the worst offenders. You will never ever find a  risk-free, 18-21% return  in the stock market or in any other kind of investment: but by paying down your credit cards, risk-free 18-21% return is exactly what you get. 2. Build up your emergency fund. Jobs  sometimes disappear, people get sick and need special care, or can’t work for a time. Do you have enough to live for eight (8) months, stashed in a risk-free savings account  option? If not, aim for two months, two weeks, whatever you can start with. Pop your refund into your emergency account and sleep better at night. 3. Gain a tax advantage for the future: contribute for the coming year’s RRSP (for Canadians) or IRA (Americans), or equivalent tax-...
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This blog entry is a little more directive than I usually use, and that’s because I feel so strongly about the process of goal-setting and life-building. So I invite you to buckle up, and think carefully about your future! The Wealth Design Process can be the most powerful element of the  ChartYourcousetowealth.com  — IF you let it. This is where you can select and design your own wealth future. This is where you activate your vision and your power. The best way to predict your future is to create it. – Abraham Lincoln First: Elevate your story. I invite you to ask yourself, What kind of story are you living right now? Is it a comedy, a tragedy, an adventure? or is it a great romance with you and life, in the starring roles? And here’s a question: what’s your role in the story? Are you the hero, male or female, of your own life? Are you the hero of your own life? So if not, I want you to do some thinking. If you really want to be the hero, if you really want your story to be a...
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Financial Fitness Tips

  1. This month, post an extra $10 towards the monthly payment on your highest interest credit card. Next month, increase it to $15, then $20 and more every month. You’re on your way to debt-free! 2. Carry a notebook or PDA around for one week (one month is better). Write down ALL your purchases, large and small. The act of recording, without doing anything else, will painlessly reduce your spending. 3. At the end of the week, review your list and cross off every expense that did NOT provide value. Consider the list for future purchases. 4. Increase your income: look for a side-business selling crafts, minding children, providing secretarial services. Pour additional income into debt repayment! 5. Get a first class education, all the online and books-in-print you can use, programs for the kids, free newspaper and magazine access and lots more . . . with a library card. Absolutely fundamental in your financial fitness strategy! 6. Can you rent out a room to a student, or clean out y...
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