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3 Tips to Fight off the Recession

By
Mortgage and Lending with Quicken Loans

With uncertainty in the economy, many are treading lightly when it comes to their finances. Is the economy really getting better? Are housing prices going to drop further? Will I be able to find a job? These are just a few concerns on American's minds as we slowly recover.

With such financial uncertainty, will you be financially prepared if things go bad? A layoff, death in the family, medical emergency, or other unexpected event could put you in financial straits. Having the funds to pay for your mortgage or rent, utilities and other essential expenses should be mandatory.

A survey done by the Consumer Federation of America found that six out of every 10 people in America do not have money set aside for emergency expenses. Out of the people who did have money saved, only one-third of those had less than $2,000 put away.

Here are a few good ideas to make sure you have financial security and stability if you run into trouble.

Cut Spending

Everyone is cutting back due to the recession, there's no shame in it. We need to live within our means and get back to what is most important. Set aside the money you save into its own separate fund. When tough times roll around, you'll have temporary financial security as you get back on your feet. Remember, if you don't need it, don't buy it.

Have a Rainy Day Fund

Plan on having three to six months worth of savings set aside for unexpected financial emergencies. This can be done by determining a set amount of your paycheck to go into a separate fund. Unfortunately, this can be difficult for people whose funds are already tight and can't afford to set aside much from paycheck to paycheck. Everyone's situation is different, but planning ahead will save you a lot of stress and trouble when things get tough.

Refinance Your Mortgage with Quicken Loans

If your current monthly payment and mortgage rate are too high, refinance mortgage may be your best option. Mortgage rates are at historic lows, so the chance to refinance into a lower monthly payment is one that should not be passed up. While many are understandably skeptical on making any major financial decisions, refinancing into the right mortgage could save you thousands over the life of your loan.

Comments (2)

Anthony Stokes-Pereira
Better Homes and Gardens Rand Realty - Nanuet, NY
Realtor

Hi Jeff; Great tips for consumers, I thank you for sharing.

Sep 30, 2010 06:47 AM
Jeff Perry
Quicken Loans - Cleveland, OH

Hey Anthony,

No problem. I'm glad you enjoyed the article. Keep an eye out for more great tips coming soon on my blog.

Dec 08, 2010 07:50 AM