5 ways to recession-proof your life

How can we recession-proof our lives and strengthen our finances so we are as prepared as possible for what might come in the future? There are no guarantees as to what might happen with the economy, but careful planning and prioritisation can help to reduce your worry.

We are advising families to look at their budgets now and make sure their finances are as strong as possible. If they are younger than 50 years old then this might mean the possibility of losing their job, supporting a family and tackling other financial challenges. For those that are retired, they need to make their money work has hard as possible. By looking at areas of spending you could also reduce your outgoings. The best thing to do is act now, look at your finances sooner rather than later.

Here are five ways to recession-proof your life:

Tackle any debt

It usually makes sense to pay off any debt that charges the highest rate of interest first. It is also questionable that you should be saving if you have debt building interest. If you are struggling then firstly talk to the companies that are involved and see what they can do to help.

Look for a better deal

If there are things that you can’t live without such as gas, electricity, phone, broadband and car insurance then try using a price comparison service to ensure you have the best deal on the market. Switch to a cheaper deal where possible and now is the best time to do this.

Also consider shopping differently, buying in bulk is often cheaper and also try swapping to own-label products in the supermarket as these are often cheaper.

Set up an emergency savings fund

Saving money isn’t always the easiest thing to do but having an emergency savings fund will help you handle unexpected bills and events without leaving you in debt. We recommend having at least three months’ worth of expenses together and putting this into an easy or instance access account.

Look at your incomings and outgoings

Look at what money is coming into your bank account and more importantly, what is going out. Then agree a budget for spending and stick to this. This budget should be reviewed monthly. A budget will only work if you keep an eye on your outgoings. If the budget is really too tight then you might need to revisit this.

Think Pension

If you have any spare money at the end of the month then you might want to think seriously about whether you could invest this money into your pension. Pensions can be a tax-efficient way to save for your retirement.

If you would like advice on your financial wellbeing for the future then please get in touch.

*Please note: A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.

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