Real Life Real Faith July Issue | Page 9

BREXIT EFFECT:

Preparing for an

Economic Downturn

Theresa Tennyson

Magazine/July, 2016

Check Your Savings: Many in the recession of 2008 were caught with little or no emergency fund. If that is you, it is now time to start or increase your savings to create a buffer between you and living paycheck to paycheck. Most financial planners suggest three to six month of expenses, meaning three to six months of rent/mortgage, groceries, utilities, car payment, gas money and etc. This is not about saving money for shopping sprees. You are saving money to cover living expenses to keep you afloat in case of job loss, or a decrease in wages.

Check Your Expenses: Look for areas in your household budget where you can cut back and save more. If you do not have a budget, get one. You need a budget to see where there are opportunities to cut back on discretionary services and expenditures. Reduce expenses by paying off credit cards and/or loans, if you can. The goal is to give yourself financial breathing room by getting and keeping your expenses low.

Check Future Planned Spending: Review major expenditures and evaluate whether or not adjustments are necessary. A couple of good questions to ask are…

•Can this purchase wait? Pretty plainly, is this something you need or just really want?

•Can I save money buying used instead of new? Cars are a great example, but do not forget about appliances, lawn equipment, furniture and etc.

•Can you skip making the purchase at all and just rent the item for the short time you will need it? Think about it. How much stuff do you have in the garage or storage that was only used once or rarely? Compare the full cost of ownership versus renting and decide which is better for your situation.

Get Out of the Line of Fire: Finally, if you are in an industry which could be directly affected by the British/EU breakup, it may be time for you to find a new line of work before the downward spiral begins. If you are not sure, update your resume anyway and/or make yourself a stronger asset at work by gaining additional training or certifications.

Again, no one knows how all this will play out between the EU and Britain, and we know even less about how their decisions will ripple through the rest of the world. However, I agree with Edna E. Mode in the “Incredibles”, “Well, I'm sure I don't know, dahling; luck favors the prepared.”

Contributor’s Bio

Theresa Tennyson is a blogger, entrepreneur and founder of Being Broke Isn’t Cute Personal Financial Coaching. She provides one-on-one financial counseling, as well as, teaches and speaks to various groups regarding money management. Theresa is currently the co-host of the internet radio show Jazz and Stuff providing tips and insight on financial issues. To balance her analytical side, Theresa nurtures a love of jazz, blues and poetry inherited from father and can usually be found at small venues supporting local artists.

You can learn more at

www.BeingBrokeIsntCute.com, Facebook beingbrokeisntcutepfs or Twitter @BeBricLLC

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