Highlights in this issue:

• Finance = stress...
• The 7 steps to financial health…
  
• The best thing about a recession… and more…

-----------------------------------------
From the pen of Karin Iten

Dear Investment Academy Reader,

You don’t need to be a mathematical genius to identify with the fact that finance equals stress. What’s even worse is that many of us actually suppress the undeniable surge of anxiety money issues cause. And now that South Africa’s “officially” in a recession, many of us are likely to develop ulcers from the stress.

That’s why today we’re going to look at the seven things you can do to recession proof your finances.

Step 1: Save more

Do you have three to six months’ salary stashed away for a rainy day? If not, now is the time to get serious about saving.

“How?” you ask. Well, begin small. Challenge yourself to save whatever you can – even if it’s just a few rand here and there. In a weak economy, every cent counts.

Step 2: Eliminate unnecessary expenses

It’s time to make a real effort to spend less. So cut back. Delay unnecessary buys and add this money to your emergency fund instead.

Check out back issues of Investment Academy to discover great ways to cut down on just about everything.

Step 3: Hang onto more of what you make by shopping smart…

A smart shopper never spends more than he/she has to. So look for ways to save on anything you buy.

A good idea is to shop with coupons. If you’re looking for vouchers and discounts for just about anything, try Amazing Vouchers. This online voucher marketing opportunity allows you to have your cake and eat it too. It offers mind-blowing freebies, great discounts and value added vouchers for anything from beauty products and services to health and fitness to restaurants, accommodation, travel, and even plumbers and electricians.

Step 4: Pay down your debt

“A recession isn’t all bad news,” says About.com’s Erin Huffstetler. Usually during periods like this, interest rates come down. This means you debts actually cost you less and your debt repayment rands go further.

So pay off your credit cards! And keep an eye on the bond rate. Now could be the perfect time to refinance your bond with lower interest rates or pay what you were paying when rates were high and shorten your repayment term.

Step 5: Start hoarding

Prices are often unpredictable during a recession. So establish a stockpile of non-perishable foods and goods. This way, you’ll only need to buy them if run out or find an incredible bargain.

Step 6: Make the most of what you have…

There’s no need to buy something new if you can make do with what you have. Use up leftovers, find substitutes for expensive items or find new uses for the things you already have. By squeezing everything you can out of what you have, you’ll find you have a lot more money to save. In the same vein, why not learn new skills or brush up on old ones? Adopt a “can do” attitude and you won’t have to pay others to do things for you.

Step 7: Increase your income

And finally, protect yourself by finding ways to boost your income. Whether it’s investing, trading or a simple garage sale, finding ways to bring in a few extra rand can make all the difference to your pocket.

Remember, a recession is a time to think creatively, earn creatively and live creatively. Till next week, here's to your financial freedom…

Karin Iten
For the Investment Academy

PS: Why not follow us on twitter. You can receive regular updates with regards to what is pertinent in the investment world.