Recessionista!

What is a recessionista? A recessionista is a person who will not only fair well during the current recession, but will come out on top. My husband and I take pride in the fact that we are recessionistas. Of coarse, nothing is guarnateed, but right now we're in a good spot to benefit from the recession.

How? Well, we've always followed a few basic principles, outlined below. I borrowed these from my other blog, "Write Now with Mommie Rose" (http://mommierose.blogspot.com/).

1) Live below your means. This is prudent advice in any economic climate, but especially important during an economic downturn. In case you lose your job, you should have an emergency fund set aside, ideally for 3-6 months' worth of bare-bones expenses. Although popularly toted advice, I have to admit, I don't know anyone who has nearly 3 months' worth of expenses set aside. Another good reason to live below your means is if you have to take a pay cut. Making some small sacrifices now will result in not having to make major cut-backs later. A good goal to work toward is to save 10% if your gross income, not including your 401(k).

2) Keep a budget. I cannot stress this enough. You cannot control your money without a budget. Know where every dollar is going before you have it. Setting up a budget is not enough- you need to keep a budget. You deserve to be the master of your own money. You worked hard for this- don't throw it away.

3) Look for opportunity. I don't mean you should be overly optomistic. Be realistic about the current financial situation. No doubt you just lost a lot of money in your 401(k). You may not even know right now if your job is stable. What I mean is, look for opportunities to impart new ways of gaining the things you need or, less importantly, the things you want. Learn to barter. Perhaps you have something lying around the house you don't use, or you have a certain skill you're really good at. If you need a service done or if you need an object you cannot afford, consider bartering. You may be able to acquire what you need through barter.

Look for opportunities to save money wherever and whenever you can. Look to make money by capitalizing on skills you have. If you have the time, consider making a hobby into a part-time job.

Learn new skills. If you want to make improvements to your house in order to increase equity, consider a simple do-it-yourself project. Borrow a book from the library or research your project online. Whatever skill you wish to acquire, be sure you absolutely know what you are doing first. Take a free class at your community center or library. You may even consider, if you have the money and time, enrolling in college to learn a new trade altogether. It's also prudent to learn as much as you can about your current job and profession so that you are more valuable to your employer. Even if you are laid off, if you have more knowledge than the other applicants, you will be more likely to land a new job quicker.

Obviously these are not the only keys to success in a recession. This is just a start, some concepts to think about.