Thursday, December 4, 2008

It's Officail

The National Bureau of Economic Research stated this week that the U.S. is officially in a recession. You can read the full report at

The good news is that we have been in a recession since December of 2007; the bad news is this may be a very long and deep one. So what is an individual to do?

As much as the government would like consumers to spend money to help get us out of recession, it is the last thing you should be doing. This is the time to take at look at your over all finances to make sure you are able to weather the storm. If you do not have an emergency fund saved up start one right away. You can use a money market mutual fund, the ING saving account or a safe account at your local bank or credit union. Try to get the highest rate possible, but it is more about safety and availability (easy access) than anything else.

The job market is a tough one in most sectors and employers can afford to be choosey when hiring. Make sure your resume is up to date and think about projects and other things you may have done that will really set you apart. Join or update any networking sites you are a part of. If you do get laid off you want to hit the ground running.

Pay down debt. Paying a little more toward the credit card bill or auto loans goes a long way in the amount of interest you pay in the long run. With interest rates so low, if you already have an emergency fund established put any extra money into paying down existing debt.

Help out others. One report I heard stated food banks are seeing 40 new families a month. So if you can afford to buy some can goods, give to you local food bank.

What are you doing to get through the down turn in the economy? We would love to hear your ideas, so please post them. Thanks.


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