5 ways to recession-proof yourself
New research from Finder.com.au shows that Aussies are experiencing their lowest positive sentiments for employment and wage growth in the last year.
With talk of an economic downturn within Australia, this sentiment isn’t surprising.
Finder has also found that 11 million Australians are living without rainy day savings, which is a concern given the current financial climate.
Kate Browne, personal finance expert at Finder, has explained what you can do to tighten your belts a bit.
“We all have guilty pleasures, and we know what we spend too much on at times – whether that’s on nights out, shopping or catching Uber instead of public transport,” Browne said.
“With wage growth slumping, it’s also a great time to pick up a side hustle to make some extra cash and build up your nest egg.
“You could look at picking up some extra work offering your services via sites like Airtasker or even consider driving for a car share service like Uber. Get paid to drive others instead of catching a ride-share.”
Here are five ways that you can recession-proof yourself in the uncertain financial climate.
1. Buy in bulk
Buying in bulk allows you to save a bit of money, especially if it’s on items that are non-perishable, or you already use.
2. Don’t put all your eggs in one basket
If your biggest financial asset is your home, try to spread out what savings or investments you have as there’s less of a risk financially in case something happens. Spread your money across different assets, industries and countries.
3. Stash some cash
Ensure that you have a large enough emergency fund to see you through. This should be at least three months’ worth of wages. Having this amount saved up gives you time to relax in case something goes wrong.
4. Cut down on the guilty pleasures
Been spending too much on the sales? Look at your bank statement and identify your guilty pleasures. Once you know where you’re spending too much, it’s easy to scale back and save some extra cash.
5. Streamline your super
If you haven’t done this previously, now is the time to do so. Many super accounts have an option to search for other super accounts so you can consolidate them into one account. It’s also a good idea to review your super investment strategy and review other options that might work for you.
Do you have any other recession proofing tips? Let us know in the comments.
This article was written in partnership with Over60.