Protecting yourself in uncertain times

Are you worried about your husband’s job security, rising taxes, debt you already have? Uncertain times — they’re always just a heartbeat away. What can you do? Are there things out of your control? Sure. But there are things you can control. Don’t miss this opportunity to take a good, hard look at your financial situation and improve it before you are in emergency mode.

Budget Wisely. A budget is only as good as the information you put in it. That is why you have to keep track of everything that you spend and everything that you make. Only by tracking every little expense can you see where the “fat” is. Saving/investing must be a line item in your budget. Make room for it by cutting unnecessary expenses. Any contributions to an employer sponsored retirement plan would count toward the 10%.

Increase Job Security. One of the greatest fears during a recession is lay-offs. In addition, there are jobs that are being exported overseas. We can worry about this, and complain about this, but the situation won’t change. Take this time to formulate a Plan B, and be wise to the writing on the wall. If your husband’s job is always dangling by a thread, it’s time to look at the skills he has acquired and the contacts he has made. Can he transition into something else? Do his skills translate in another industry? Are there freelance or consulting opportunities available for either of you? Would an investment in more education or training improve job prospects? Look at the job classifieds for ideas on what is in demand and what qualifications are required. Is there a side business that can be started with little or no capital that you can help out with? Brain storm together, writing down everything you can think of, no matter how far-fetched it may seem. You may end up with a clear idea of where you both should be personally and professionally.

Pay Down Credit Card Debt. Get healthy and shed as much of this debt as you can. You should aim to pay off more than just the minimum and look to consolidate the debt to one lower rate card. Talk to your card company and try to negotiate a better rate. If you still have high rate cards, be sure to pay them off first. Of course, stop using credit cards for any new purchases.

Improve Your Credit Score. Lenders are more particular about who they are lending to and your credit score is more important than ever. Make sure to pay your bills on time, reduce debt as a percentage of your credit line, and pay more than the minimums. When the economy does recover, you will be in a stronger position — but, either way, this is a sound way to treat your credit no matter what the economy is doing.

Delay. Again if you are nervous about job security, or debt is creeping up on you, put off purchasing anything you don’t really need. Don’t eat out, don’t go on a vacation, don’t buy a new car, don’t indulge in anything that you would consider something you want (a manicure) versus a need (an annual check-up).

Like any time there is crisis, there’s a chance to examine your life and to truly grow and benefit from the experience. Make the most of this time; work with your husband to get your lives on track. It just may recession-proof (and divorce-proof) your life.