Now that the Fed has officially said a recession is looming, it’s time for you to get your money in order and save it. Finance expert Suze Orman has some solid advice for helping you prep so you and your family can get through tough times.
With 58-percent of Americans living paycheck-to-paycheck some saving is in order and maybe cutting back. Orman says the word “can’t” needs to go. Replace it with the word “must.”
She suggests you draw up a financial to-do list right now that includes getting out of credit card debt, having an eight- to 12-month emergency fund and funding their retirement accounts. Some experts say a three month fund will do in a pinch.
Her tips on how to make it happen include:
- Make yourself a priority. Ditch the extras and put that money into a retirement account.
- Pay down your debt. During a recession you’ll need to hold off on using credit too.
- Direct deposit money into your savings account every paycheck. You won’t miss what you don’t see!
- Live below your means. When making purchases ask do you want it or do you need it? Only the needs make the cut.
Orman notes that once you start saving, it will be as addictive as spending.
Source: CNBC