How to Financially Prepare Yourself in the Face of a Recession

From time to time, I come across an article that I think would be beneficial to my audience. Lucille Rosetti runs the web-site www.thebereaved.org. She has graciously allowed me to repost her article on my site. www.thebereaved.org has great information for seniors and for the people who love and help them. This is a very informative site that I highly recommend.
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The uncertainty of a recession can be daunting, especially when it comes to your finances. However, with proper preparation and planning, you can weather the storm and come out the other side financially secure. Here are some foolproof strategies from American Liberty Mortgage to help you financially prepare yourself in the face of a recession.

Put together a budget

One of the most important things you can do to prepare for a recession is to make a budget. Knowing how much money you have coming in and going out each month can help you make smarter financial decisions. It can also help you identify areas where you can cut back on your spending.

Start by listing all of your sources of income, including your salary, any side hustles, and any passive income streams you may have. Then, list all of your monthly expenses, including rent or mortgage payments, utilities, groceries, transportation, and any debts you may have.

Once you have your budget in place, look for ways to reduce your expenses. Can you negotiate a lower rate on your cable or internet bill? Can you carpool or take public transportation instead of driving to work? Every little bit helps.

Consider a reverse mortgage

For seniors who own their home but are in need of additional funds, a reverse mortgage can be a helpful financial tool. A reverse mortgage allows homeowners aged 62 and older to convert part of their home equity into cash, providing money for living expenses, healthcare costs, home improvements, or other needs. The loan does not need to be repaid until the borrower moves out, sells the home, or passes away. To learn more about reverse mortgage options and determine if one may be right for your situation, consider contacting a reputable lender like American Liberty Mortgage to discuss the process and potential benefits in more detail.

Go back to school

In today’s competitive job market, it’s essential to stay ahead of the curve by continuously improving your skillset. Pursuing higher education, such as evaluating a bachelor in business administration degree, can provide you with valuable knowledge and expertise in various aspects of business, including accounting, communications, and management. Many universities now offer flexible online degree programs, allowing you to balance your full-time job with your studies. By investing in your education, you can enhance your career prospects and position yourself for success in your chosen field.

Start an emergency fund

In uncertain times, having an emergency fund can be a lifesaver. An emergency fund is a savings account that you can dip into when unexpected expenses arise, such as a medical emergency or a job loss. Financial experts recommend having at least three to six months’ worth of living expenses saved up in your emergency fund.

To build your emergency fund, consider setting up automatic transfers from your checking account to your savings account each month. Even small amounts can add up over time, so don’t be discouraged if you can only afford to save a few dollars a week.

Protect your home and budget

Homeowners insurance provides protection for your home’s structure, theft of belongings, and injuries that occur on your property, but it does not cover the breakdown of home systems or appliances. To safeguard against costly repairs or replacements of these items, investing in a home warranty is a smart financial decision. With home warranty appliance coverage, you can have peace of mind knowing that if your heating, cooling, electrical, or plumbing systems malfunction, or if your covered appliances break down, you’ll be protected. A home warranty is an annual renewable contract that can save you significant money in the long run, making it a worthwhile investment for any homeowner.

Reduce your spending and cut costs

During a recession, it’s important to be mindful of your spending and look for ways to cut costs wherever possible. For instance, check objective product reviews before investing in new products; that way, you won’t waste money on products that aren’t worth it. Also, you can avoid products that might be unreliable or dangerous.

You should also consider canceling subscriptions you don’t use, eating out less, or buying generic brands at the grocery store instead of name-brand products. Another way to save money is to look for ways to reduce your energy usage. This could mean turning off lights when you leave a room, using a programmable thermostat, or installing energy-efficient light bulbs and appliances.

Make smart purchases

When making intentional purchases, it’s crucial to spend your money wisely. To ensure you get the most value for your dollar, take the time to read product reviews and check ratings before making a decision. This research will help you identify products that are built to last and will provide long-term satisfaction. By investing in well-reviewed, high-quality items, you can be confident that your purchases will be worth the expense and serve you well for years to come.

Consider recession-proof business ideas

If you’re looking for ways to generate income during a recession, consider starting a business that is recession-proof. Some examples include repair services (such as appliance repair or auto repair), childcare, accounting, security services, or online freelance services. These types of businesses tend to be in high demand regardless of the economic climate. If you’re unsure where to start, consider reaching out to a business coach or mentor for guidance.

Preparing for a recession can feel overwhelming, but there are steps you can take to protect your finances. Make a budget, build an emergency fund, reduce your spending, invest wisely, consider recession-proof business ideas, and work with a financial advisor. By taking these steps, you’ll be better equipped to weather the storm and come out the other side financially secure.

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Bruce Simmons

I absolutely love what I do - working with senior homeowners to help them live a more comfortable, flexible and secure retirement. I have the absolute best customers in the world, and even though I worked in the forward mortgage business for a number of years, I could never go back to doing conventional loans. I'm a 100% reverse mortgage specialist.

5.0

My wife and I are retired and had a mortgage that was quite high. We contacted Bruce regarding a Reverse Mortgage and were pleased with his knowledge and experience. He made the whole process very easy and explained everything along the way. Since then, I have had a couple of questions and contacted him regarding the RM. Bruce has always been very responsive and returned our calls within minutes. We couldn't be happier having used Bruce for the Reverse Mortgage and highly recommend him.

Bruce has been serving my interest over and above what one might expect during the whole process of handling my reverse mortgage dating back to 2010 and continues to be available at present whenever a question may arise. He is one of the most reliable, trustworthy and knowledgeable experts regarding reverse mortgages that I have had the privilege to do business with! I would highly recommend Bruce to anyone who is considering a reverse mortgage. Thank you Bruce!

I met Bruce from a referral who just love what he did for them on their Reverse Mortgage, So I contacted Bruce and told him my story and he came up with a great Reverse Mortgage for me and my needs and now I am living good and not worrying about Finances anymore. He had it done in a timely manner. If you are looking for the MAN to help you get the best Reverse Mortgage you need to call him and hope you let him help you.

Bruce is one of the most professional, knowledgeable and efficient experts I have worked ŵith ever in any field. He is fast to answer and always ready to help...and he's a great guy!

Gerald Cook
Gerald Cook
5.0

Bruce did our original reverse mortgage and has also refinanced it twice. He works hard to get the best deal possible while making it as easy for us as possible. When our first refinance received a low initial appraisal, Bruce helped the appraiser find better information and increase the appraised value. He's the best.

I was hesitate about getting a reverse mortgage until Bruce Simons put my mind at rest. He is easy to work with, extremely knowledgeable and efficient. Things get done and he will make sure that you understand every part of the process. I interviewed several other people and he was hands down.....The only choice.

Doing a Reverse Mortgage is a major decision, when working with Bruce he came out personally to go over every thing in detail, there was no pressure to finalize the transaction, I had even put the loan on hold for awhile even though I had locked in my rate, I had called Bruce off and on for a few weeks to ask questions that I had concerns about and he was always available to talk to me. In the end it gave me time to feel comfortable about my decision to move forward with the Reverse. Bruce was very pleasant to work with and would certainly recommend Bruce if you are going to consider a Reverse Mortgage.

Bruce Simmons at American Liberty is one of the best in the reverse mortgage industry. I have known and worked with him for years and he always does a great job. You are in good hands with Bruce and know that he will take good care of you or your loved ones every step of the way.

Best thing I ever did! Bruce Simmons at American Liberty Mortgage is the best. He is always there to answer your questions, and can easily explain the whole idea of a Reverse Mortgage. He takes the time and goes through the entire process with you. It worked out so well for me. Thank You Bruce!

We had researched Reverse Mortgages for 5 years and after hearing about Bruce Simmons and meeting with him, we finally decided to move forward with the Reverse Morgage. It has been over a year now and we are still very pleased with our decision. We think Bruce is very professional, knowledgeable and honest. Thank you, Bruce, for all your help.

I first met Bruce Simmons 2017. I found him on the internet. I was looking for someone local. I called him and explained I was only looking into doing a reverse mortgage, so I did not want him to think this was something I was ready to do. Bruce was friendly, very open about the basics of a reverse mortgage. Bruce came to my home and presented the figures and other details that he could offer. The first thing that impressed me was this was not a hard sell, more of a informational meeting. He was very open about all of the details, and answered my questions without hesitation. What really was evident was he was establishing a relationship with me, and I realized he knew I would not take the loan at that time. There was not enough equity in my home, and I would have to bring money to the table. Although I was not ready to do a loan, Bruce assured me he is always available for questions. Four years later, I finally did do a reverse mortgage, and I couldn't be happier with having done it. I have done away with a mortgage payment which allows me to fund my retirement account with that mortgage payment. We did some much needed landscaping with our cash out transaction, and will move on to improvements inside of the house. My reverse mortgage has a line of credit, and I feel sense security knowing it is there if I need it. Bruce explained that a reverse mortgage is not for everyone, but I feel certain that he paved the way for a strategy that worked for me. I will definitely do a refinance when the time is right. I will check in with Bruce to be sure what the benefits are when I do it again.

I have worked with Bruce Simmons for 15 years. Bruce is one of the best in the industry. He is extremely knowledgeable, kinds and detailed in what he does. His clients love working with him and trust him to help them with their Reverse Mortgage loans. I would recommend Bruce to anyone I know that is thinking about or wanting to do a Reverse Mortgage. He will always take very good care of the customers and make sure their needs are met! Class act and one of the best in the industry by far!

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Unlock the secrets to a more secure retirement with our exclusive Consumer Guide! Discover if a reverse mortgage is your golden ticket to financial freedom and comfort in your later years. 

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John Addante
John Addante

Left us a 5 star review

My wife and I are retired and had a mortgage that was quite high. We contacted Bruce regarding a Reverse Mortgage and were pleased with his knowledge and experience. He made the whole process very easy and explained everything along the way. Since then, I have had a couple of questions and contacted him regarding the RM. Bruce has always been very responsive and returned our calls within minutes. We couldn't be happier having used Bruce for the Reverse Mortgage and highly recommend him.

Bruce has been serving my interest over and above what one might expect during the whole process of handling my reverse mortgage dating back to 2010 and continues to be available at present whenever a question may arise. He is one of the most reliable, trustworthy and knowledgeable experts regarding reverse mortgages that I have had the privilege to do business with! I would highly recommend Bruce to anyone who is considering a reverse mortgage. Thank you Bruce!

I met Bruce from a referral who just love what he did for them on their Reverse Mortgage, So I contacted Bruce and told him my story and he came up with a great Reverse Mortgage for me and my needs and now I am living good and not worrying about Finances anymore. He had it done in a timely manner. If you are looking for the MAN to help you get the best Reverse Mortgage you need to call him and hope you let him help you.

Bruce is one of the most professional, knowledgeable and efficient experts I have worked ŵith ever in any field. He is fast to answer and always ready to help...and he's a great guy!

I was hesitate about getting a reverse mortgage until Bruce Simons put my mind at rest. He is easy to work with, extremely knowledgeable and efficient. Things get done and he will make sure that you understand every part of the process. I interviewed several other people and he was hands down.....The only choice.

Doing a Reverse Mortgage is a major decision, when working with Bruce he came out personally to go over every thing in detail, there was no pressure to finalize the transaction, I had even put the loan on hold for awhile even though I had locked in my rate, I had called Bruce off and on for a few weeks to ask questions that I had concerns about and he was always available to talk to me. In the end it gave me time to feel comfortable about my decision to move forward with the Reverse. Bruce was very pleasant to work with and would certainly recommend Bruce if you are going to consider a Reverse Mortgage.

Bruce Simmons at American Liberty is one of the best in the reverse mortgage industry. I have known and worked with him for years and he always does a great job. You are in good hands with Bruce and know that he will take good care of you or your loved ones every step of the way.

Best thing I ever did! Bruce Simmons at American Liberty Mortgage is the best. He is always there to answer your questions, and can easily explain the whole idea of a Reverse Mortgage. He takes the time and goes through the entire process with you. It worked out so well for me. Thank You Bruce!

We had researched Reverse Mortgages for 5 years and after hearing about Bruce Simmons and meeting with him, we finally decided to move forward with the Reverse Morgage. It has been over a year now and we are still very pleased with our decision. We think Bruce is very professional, knowledgeable and honest. Thank you, Bruce, for all your help.

I first met Bruce Simmons 2017. I found him on the internet. I was looking for someone local. I called him and explained I was only looking into doing a reverse mortgage, so I did not want him to think this was something I was ready to do. Bruce was friendly, very open about the basics of a reverse mortgage. Bruce came to my home and presented the figures and other details that he could offer. The first thing that impressed me was this was not a hard sell, more of a informational meeting. He was very open about all of the details, and answered my questions without hesitation. What really was evident was he was establishing a relationship with me, and I realized he knew I would not take the loan at that time. There was not enough equity in my home, and I would have to bring money to the table. Although I was not ready to do a loan, Bruce assured me he is always available for questions. Four years later, I finally did do a reverse mortgage, and I couldn't be happier with having done it. I have done away with a mortgage payment which allows me to fund my retirement account with that mortgage payment. We did some much needed landscaping with our cash out transaction, and will move on to improvements inside of the house. My reverse mortgage has a line of credit, and I feel sense security knowing it is there if I need it. Bruce explained that a reverse mortgage is not for everyone, but I feel certain that he paved the way for a strategy that worked for me. I will definitely do a refinance when the time is right. I will check in with Bruce to be sure what the benefits are when I do it again.

I have worked with Bruce Simmons for 15 years. Bruce is one of the best in the industry. He is extremely knowledgeable, kinds and detailed in what he does. His clients love working with him and trust him to help them with their Reverse Mortgage loans. I would recommend Bruce to anyone I know that is thinking about or wanting to do a Reverse Mortgage. He will always take very good care of the customers and make sure their needs are met! Class act and one of the best in the industry by far!