If you’re a first responder or part of a first responder family, the past year has been tough.
Not only have you had to deal with the stress of the job, but you may also be struggling financially as the cost of just about everything continues to rise.
So what can you do to protect yourself and your family in the event of an economic downturn? Here are 7 tips to help you weather the storm.
1. Review your expenses and create a budget
Now is a good time to review your expenses. Track your spending for 30 days and categorize it into fixed costs (e.g., mortgage, car payment, insurance) and variable costs (e.g., groceries, gas, entertainment).
Once you have a better understanding of where your money is going, you can create a budget that fits your new reality.
2. Cut unnecessary expenses
Take a close look at your budget and see where you can trim the fat.
If you have costly subscriptions or memberships – cancel them.
3. Build up your emergency fund
Now is a good time to start building an emergency fund so that you have some financial cushion in case something unexpected comes up in the future.
Aim to save three to six months’ worth of living expenses so that you know you can cover your basic needs if you lose your job or face another unforeseen circumstance.
4. Get rid of debt
If you have any high-interest debt, now is the time to get rid of it. The sooner you can pay off your debt, the less money you’ll spend on interest payments.
If you have multiple bills from different creditors, see if you can consolidate them into one monthly payment at a lower interest rate. This will simplify your bill-paying process and save you money on interest charges over time.
5. Invest in yourself
Use this down time as an opportunity to invest in yourself professionally and personally.
Whether it’s taking an online course, brushing up on old skills, or learning new ones , improving yourself will make finding employment opportunities easier should the need arise.
Here is a book I highly recommend if you want to start to invest in your financial literacy – click the image for more info!
6. Make extra money
If you’re already doing everything you can to save money , it might be time to start bringing in some extra income.
There are plenty of ways to do this, whether it’s through freelance work , part-time jobs, or investing in assets that generate passive income. Ride share services like Lyft and Uber are a great option if you enjoy driving and have reliable transportation.
7. Have hope
Although things may seem bleak right now, it’s important to remember that this too shall pass.
The world has faced hard economic times before and we always come out on the other side.
Stay positive and keep working towards your goals — things will get better!
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