Chicago Residents Prepare Finances for a Possible Double-Dip Recession
One day we're discussing the end of the economic downturn - the next, we're speculating about whether we're in a double-dip recession.
What's the moral of the story? You just can't trust the economy - so you've got to trust yourself.
Sure, things seem bad right now. But if you look at the past, you'll see that economic history is punctuated by a series of ups and downs. Some say we're experiencing a double-dip now, others say we're not. The truth is, it doesn't matter, say Chicago bankruptcy attorneys. What matters is the state of our finances. Because if they're prepared to weather any economic storm, we'll be prepared as well. And if the storm never comes? Look at is as free financial insurance.
If you haven't already, this is the time to fortify your finances by building up an emergency savings fund. Before you do anything else with your savings, put enough in an easily accessible account to cover several months of living expenses. That way, if the worst happens - let's say you lose your job - you can concentrate on finding a new one instead of worrying about money.
Once you've padded up your savings, it's time to think about lowering debt. I know you're probably not looking forward to increasing your monthly payments, but the more you pay towards debt today, the less you'll owe in the future. After all, do you really want to be paying interest on this week's groceries 20 years from now?
Maybe you're worried that you can't afford to save. I understand - we're coming out of a period when most folks have been struggling to make ends meet, and we haven't had time to recover. Sometimes writing out all your expenses can help you identify the little places where you can cut back. For instance, consider calling your cable or phone company and asking for a lower rate. Or cancel your cable or land line for awhile, just until you've built up a comfy little cash cushion.
But if you just can't give another inch, you might be able to find more financial flexibility by getting rid of debt once and for all. Filing for bankruptcy can eliminate your debt completely while protecting assets like your house. Tired of being a prisoner to debt? Try our free personal debt analysis. Our Chicago bankruptcy attorneys can identify a bankruptcy plan to help you find financial freedom. So you'll be prepared for whatever the economy throws your way.