Seven Practical Ways Families Can Manage a Recession

Recession is an economic situation where there is significant decline in economic activities that lasts more than a few months and affects real income, GDP, employment and production etc. This situation impacts greatly on the family unit and I believe that with limited resources, families need to find ways to adapt to the emerging reality.

Here are seven ideas for families to manage a recession: 

1. Create a budget: This will help you understand your financial situation and identify areas where you can cut back on expenses. You do this by gathering all your financial information including income, debts and expenses.

2. Reduce non-essential expenses: Consider canceling subscriptions, cutting back on dining out, and shopping around for the best deals on groceries and other household items.

3. Increase income: Consider taking on a part-time job or freelance work, or asking for a raise or promotion at your current job.

4. Build up an emergency fund: Try to save at least a few months' worth of expenses in case of job loss or unexpected expenses.

5. Consider selling assets: If you have assets such as a car or jewelry that you no longer need or use, consider selling them to generate extra cash.

6. Use credit wisely: Try to pay off credit card balances in full each month to avoid high interest charges. Only use credit for necessary expenses.

7. Seek financial advice: If you're having difficulty managing your finances, consider seeking the advice of a financial planner or counselor. They can help you develop a plan to get your finances back on track.