By Mallory Edens
A recession can inspire dread in most people in Lake Mary, FL. It’s difficult to prepare for such a worst-case situation. During a recession, you hope you can survive — but you can choose to thrive by following a few tips.
Manage Your Household Budget
One step to help you thrive during a recession is budgeting. Track your income and spending habits while ensuring everyone in the household understands the motivation behind making a budget. Small habits, such as using up leftovers, reduce food costs by eliminating waste. Reach out to your utility providers for ways to lower your energy bills, such as putting the utilities on a budget plan.
Rethinking any unnecessary costs may be temporary, but it’s challenging since many people don’t want to do without certain luxuries. Streaming services and recurring magazine subscriptions may be extras that you can cut from your budget.
Invest in Homeowner’s Insurance
Another solution is purchasing home insurance to financially protect yourself and your family in case of a disaster. Keep in mind that home insurance rates are influenced by several factors, such as your location, credit and claims history, and the age and condition of the home. Before choosing a provider, consider costs for Florida homeowners insurance, as well as coverage and exclusions. Many insurance providers offer multiple insurance types, and customers who purchase more than one policy from the insurer often receive a bundling discount.
Maintain Your Mortgage Payments
Missing a mortgage payment is a valid concern during hardships. A loan modification can lower interest rates or the amount you owe to reduce your mortgage payments. Potential foreclosure due to unavoidable or unexpected financial problems can be averted if you request a loan modification from your lender. To qualify, provide proof of financial hardship and proof of adequate income to make future payments.
Refinance Your Home
Another solution that may help you pay off your mortgage faster is refinancing. Essentially, a new lender pays off the previous mortgage and replaces it with a better option. Know your credit score and your home’s worth before you begin looking for refinancing options.
Your next step is researching mortgage rates and gathering the necessary documents to apply for refinancing. This usually includes bank statements and pay stubs. Refinancing involves variable fees depending on the lender, so doing your research can save you from stress and help you save money.
Manage Stress
Believe it or not, following much of the above advice can reduce your depression or anxiety related to finances. However, there are times when you need more help, and that’s okay. Self-care during a recession is just as important as managing your household budget, and it often involves little cost. Taking a relaxing bath, listening to soothing music, or reading your favorite book can all give your mind a break from daily stress. Take up a favorite childhood hobby to reintroduce innocence and fun into your life. Use adult coloring books as a welcome distraction if you need a few minutes to yourself.
Closing Thoughts
You can thrive in a recession if you continue to take appropriate actions, such as tracking your income, purchasing home insurance, seeking mortgage relief, and implementing spending or investing in options that reduce your debt. Reach out to REAP for financial advice and wealth planning strategies.
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Retirement & Estate Advisors & Professionals (REAP) is a professional firm designed to assist families in protecting their assets and maintaining their standard of living. Contact us to find out more! (855) 904-REAP
