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Recession Proof

"If money is your hope for independence you will never have it.
The only real security that a man will have in this world
is a reserve of knowledge, experience, and ability."
-- Henry Ford

Surviving & Thriving in a Down Market

Odds are you've come through tough times before. Now, more than ever, it's important to remain optimistic while you keep your eyes open to your own reality. Here are few tips to get started:

• Know your status. Do a personal profit and loss statement to understand your financial picture. Order a free credit report. Keep all of your important documents in one place. Get all of your basic health checkups as well. The goal is to minimize costly surprises. 
• Secure your income. Show clear value at work and track your accomplishments. If you have your own business, then step up your branding and customer service. See how to diversify your income by freelancing, creating royalty revenue, or starting an online business. Work additional hours or get a second job if you have to.  
• Manage expenses. Make a budget to see where you might be overspending. Reduce unnecessary spending such as eating out and spa trips. If you don't have it already, start an emergency fund which will cover at least three months of expenses. See how you can lower monthly bills. For example, join a family share plan for your phone services and/or reduce the level of your cable service. Use any extra money to pay down debt and try not to rack up new debt. Delay the purchase of large items if possible.   
• Plan for the future. Aim to save at least 10% of your income even in tough times. Protect your health insurance - if you have it. If you're in a industry hit hard by recession, consider shifting careers. Re-vision your "personal pitch."  Sharpen your skills with additional training. Look for market opportunities created by the downturn.   
• Network. This is the time to reach out. Actively seek a circle of support. Find or start a networking group of people who are in the same industry - or join a group that is focused on the industry in which you want to work. Make use of low-cost technology-enabled "touch points" such as email, blogs and e-newletters.
• Remain positive. Even if you've been laid off or your business is down, keep your head up. Practice stress management techniques. Remain enthusiastic about your future. Remember - this too shall pass!

Dear Dr. Terri K: I've just lost my job. I've NEVER been unemployed since I started working over 30 years ago. I am in a panic and don't know what to do. I feel like a failure. Please help!!     - LINDA

Linda: First, congratulations for reaching out. You are certainly not alone. Here are some suggestions to get you going again:

1. Don't take it personally. Many qualified people are losing their jobs. Given the market, your position can be in jeopardy regardless of performance. You might be shocked but don't get stuck in that mode. It's important to move on as soon as possible and plan for your future. Remember that your job does not define who you are at your core. You are inherently valuable. The Universe may simply be opening up a better opportunity for you. 
2. Negotiate. If you are in the position to receive a severance package, pay attention to the details. Cash is good, but also ask about health insurance and outplacement services. In addition, inquire about what kind of recommendations and/or referrals you can receive.
3. Expand your vision. Take a moment to think about what you really want to do with your life and career. This is the time to be creative and open. Do you want to stay in your current city? Do you want to shift industries? Do you want to go back to school? This is an opportunity to re-align your work with your authentic self.   
   
4. Keep a schedule. Be diligent in looking for a job. View the search itself as a 9-to-5 if necessary. Use that time to research, revise your resume, reach out to people and keep up with industry news. Be sure to stay on top of your health and fitness goals. It's important for your energy to be up so that you can remain focused. 
5. Network. Join relevant professional networking groups. Let your friends, family and colleagues know you are looking for a job. Don't feel ashamed. View this time as an opportunity to grow. Practice your interviewing skills with your friends.
6. Proactively manage your money. Create a scaled-down budget. Cut all unnecessary spending. Expect the best but plan for the worst. Separate your financial goals from your career goals. If your reserve funds are very low, then take an unrelated job for additional income.
7. Volunteer. Donating your time to others will boost your mood, expand your skills and widen your circle. It's helps you keep things in perspective and is a wonderful way to express gratitude for what is going right in your life.  

Today, take control of your career. This is the time to craft the life you want. Keep your head up and you will receive favor!

- T

• MyMoney - This site is operated by the U.S. Financial Literacy and Education Commission and provides free financial education resources for all Americans.
• AnnualCreditReport - This is the official site to help consumers obtain a free credit report once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion.
• Federal Trade Commission - The Federal Trade Commission focuses on consumer protection and law enforcement in various sectors of the economy. This part of the site offers facts for consumers regarding their credit reports.
• OperationHOPE - Operation HOPE offers practical information and tools on financial literacy and economic empowerment.