How good are you with your money?Take this 2 minute quiz to get your financial wellness score!
Click Here to Start*Bonus: Learn about my new book, Get Good with Money

5 Ways to Thrive Through a Recession

5 Ways to Thrive Through a Recession

By TheBudgetnista -  Tags: , , , ,

In February 2020, the United States economy officially entered a recession (when a country experiences an economic downturn for at least 6 consecutive months). Because of COVID-19 and the recession, over 30 million jobs have been lost. This is important to note because one of the markers of a recession is a sharp increase in unemployment.

Just to illustrate the seriousness of the current job loss numbers: During the Great Recession (2008-2010), 8.8 million people lost their jobs.

And it was T-O-U-G-H! I was one of those people who were unexpectedly "let go" by my employer during that Recession. Since 2010, I've learned some key lessons from that time–– I learned how to not only survive... but to thrive through the recession. 

Let's get into a few:

1. Forgive Yourself: 

You may be beating yourself up for not being prepared for this economic downturn. Maybe you’re replaying every time you ate out last year and how much you could have saved. Stop. It’s not your job to predict pandemics. And being hard on yourself is not helpful. Forgive yourself and identify the lessons: 1. Recessions are a natural part of the economy and happen every 10-15 years. 2. Commit to being prepared for the next recession by taking action today. 

2. Budget Differently: 

During the Great Recession I spent a lot of money trying to keep up with expenses after I lost my job. I wish someone would have told me that when you don’t have any income coming in or your income is reduced, the most important thing you can do to preserve the money you do have by switching to one of two budgets.

a. Health & Safety Budget: If you have no income coming in, that means any expense that does not provide for your health and safety will have to wait. Yup, even if that means being late. Your health and safety comes first.

b. Noodle Budget: If your income has been reduced or is in danger of being reduced…use your, “if you had to eat ramen noodle budget”. A noodle budget is your bare-bones budget that only includes necessities and basic bills. That means no eating out, streaming services or subscriptions. It identifies the lowest amount of money you need monthly to survive without paying bills late (a.k.a your financial baseline). Do you need to drop down and get your noodle on?

3. Ask for help: 

Asking for help is a sign of strength. It means you acknowledge that you’re unable to do it alone and need assistance. How smart is that? Start by calling the companies you owe and share your hardship. Many will offer some assistance. Even if they don’t, remember your Health & Safety Budget. YOU have to choose YOU first and foremost. Don’t forget to reach out to your municipality, you may be able to get help with housing, food and utilities. Lastly, your family and friends may also be a resource. I moved in with my sister for almost a year during the Great Recession as I struggled to get on my feet.

4. Save! Save! Save! 

If you’re fortunate enough to still have an income, it’s important to pad your emergency savings account until you have at least 6 months’ worth of your Noodle Budget saved. No one knows how long a recession will last or if their job will survive. Having a strong savings account is your first line of defense. If you don’t have 6 months saved, I suggest that you temporarily pay the minimum to your debt and put the excess toward savings until you’ve fully funded your emergency account.

5. Purpose, Passion, Pivot:

Recessions can be a time of rebirth. Many millionaires are made during a recession because folks that have lost everything feel like they have nothing else to lose, so they finally chase their dream. Have you suffered a great loss? That means you have an opportunity to rebuild the life that you truly want. I started the recession as a school teacher and ended it as an entrepreneur and I haven’t looked back since. How will you pivot toward purpose and passion?

Andddddd... guess what?! Little ole' me shared these tips and more on Good Morning America (YES! That one!). Check out the full video here:

Full video here:

Okay, so now we have a few tools in our kit to help us stay afloat or thrive during the recession.

Stay tuned for more insight and personal finance tips.

Get FREE Weekly Goodies!

Join the mailing list to get FREE weekly budgeting goodies directly to your inbox.
Tiffany “The Budgetnista” Aliche is quickly becoming America's favorite, personal financial educator. The Budgetnista is also an Amazon #1 best selling author (The One Week Budget and Live Richer Challenge), sought-after speaker and teacher of financial empowerment.
DISCLAIMER: Please read this Disclaimer carefully before using the Website (the "Website") operated by CLD Financial Life ("us," "we," "our") as this Disclaimer contains important information regarding limitations of our liability. Your access to and use of the Website is conditional upon your acceptance of and compliance with this Disclaimer. This Disclaimer applies to everyone, including, but not limited to: visitors, users, and others, who wish to access or use the Website.

By accessing or using the Website, you agree to be bound by this Disclaimer. If you disagree with any part of this Disclaimer, then you do not have our permission to access or use the Website.

Tiffany “The Budgetnista” Aliche is not a lawyer, accountant, credit analyst or investment broker. Information Tiffany Aliche provides during her presentations is for informational and educational purposes only. Tiffany Aliche assumes no responsibility or liability for any errors or omissions in the content provided. The content Tiffany Aliche shares in this video, workshop and/or presentation is provided on an "as is" basis with no guarantees of completeness, accuracy, usefulness or timeliness. The information shared is from Tiffany’s personal experience wherein she increased her credit score, reduced her taxes, increased her earnings and shifted her business organization. Any reference to credit scores that “Jump like Jordan” should be taken figuratively—not literally. Any reference to credit scores that Jump like Jordan is not a guarantee that your score will increase similar to Tiffany Aliche.

Tiffany Aliche’s personal success is not a reliable indicator of future results. It is very important to do your own analysis before making any financial, legal or accounting decisions based on your own personal circumstances. You should take independent financial advice from a professional, or independently research and verify any information before implementing any information that Tiffany Aliche shares and you wish to rely upon.

Affiliate Disclaimer: We participate in the affiliate advertising programs with several brands and organizations, which are designed to provide a means for us to earn fees by linking to their products or services on our Website. The fact that we participate in this affiliate program means that these brands and organizations compensate us for the inclusion of links that are clicked on and our reviews. A list of our current affiliates can be found here: 

Changes: We reserve the right to amend this policy at any time without any prior notice to you.
© Copyright 2022 - The Budgetnista Blog - All Rights Reserved
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram