The economy can be hard on your portfolio.  This has happened before and it could happen again.  Now that we’re officially in a recession, what better time to pump up your resources and shore up your portfolio than to make it recession-proof now or at least weather the tough economic times?  Here are some anti-recession tips you might want to consider:

Aim for quality.

If there’s one thing that markets abhor, it’s uncertainty.  This is especially prevalent in the way investors behave when faced with companies that produce predictable figures.  This is also the reason why investors are loathed to take chances on companies that don’t perform as expected.  These companies are usually the small ones, ones that need investors’ faith the most.

To start shoring up your portfolio, try to avoid companies that will rely heavily on you, the investor.  It will be easier for you (and safer for your investment) to rely on companies that more or less show predictable growth because this points to better earning quality.  Opt for these companies instead – these are usually large firms, big players in an industry that have proven staying power regardless of the economy and have plenty of money to continue to run, do business, pay debtors, produce and make their investors happy.

Invest in health care.

Take your pick: drugs, medicines and pharmaceuticals or health services.  Whichever way you go, you have a better means of shoring up your portfolio if you put your faith on this sector that continues to enjoy a healthy performance. 

And it shouldn’t surprise you one bit: what the health care industry can offer is a staple among consumers – good health and a means to cure.  Unless someone comes up with a miracle cure soon, the health care industry will continue to thrive.  Until then, this is one more segment of the market that you might consider putting your faith on.

And yes… the fact that certain segments such as pharmaceuticals pay a lot in terms of dividends doesn’t hurt.

Stick where the crowds are.

By crowds, we mean consumers.  Consumers are the lifeblood of economies.  Without their support and willingness to spend, economies can crash and burn so easily.  As an investor looking to shore up your portfolio, here’s an anti-recession tip for you: invest where consumers bloom. 

This means putting your money on industries that cater to the most basic of consumer needs, such as food and beverages, personal care and household needs.  Other than the fact that consumers have been proven to continue spending for basics even during a bad economy, these industries have also performed well during less-than-ideal economic times in the past.  You’re less likely to experience disappointment if you go where consumers go.

Diversify.

Recession always brings out the worst – and best – in people, especially investors.  Which way you wish to take is really up to you.  However, wouldn’t it be better to view the recession as an opportunity to find other means to make money? 

If you want to shore up your portfolio and avoid the negative effects of a recession, consider diversifying.  But do so only by carefully considering the pros and cons of the industries that you wish to invest in.  Focus on industries that have behaved so well under pressure, particularly those that continue to stay steady even during a recession.

Purchasing real estate is no laughing matter – whether the economy’s doing well or it’s experiencing recession. It’s a well-known fact that buyers are in a better position to purchase real estate during a recession. However, there are still some risks involved. So how do you make sure you’re still getting the best real estate deal during the recession times? Here are some tips that you can make use of:

Don’t come undone with your own expectations.

Determining whether you have gotten yourself a good deal in buying real estate, or simply just about anything, depends on your priorities. We all differ in priorities, that’s a fact. So if you’d like to make sure you satisfy yourself, get your own expectations in check. Creating a checklist can help you here. Finding a property to buy with a checklist handy can greatly facilitate the process.

Don’t be too you-you-you.

Sure, you were advised to know your priorities and to create a checklist to boot. However, flexibility can also get you a long way. Be objective with your judgments and take a hard look at the property you are planning to buy. Think hard and see if you are actually being too choosy to the point of being impractical. Would you like fancy or functional? Is it comfy or uber-elegant? How about trying to meet in the middle? Have you asked for suggestions from experts of family or friends with experience? Do they agree with you? Although you do not need to wipe your slate clean and accommodate all their opinions, are your expectations realistic enough and what about your budget? Remember it is recession.

Don’t be over-confident during a real estate recession.

Many think that since it is recession, they can just buy and buy and buy properties. Although many property sellers are usually on the lower part of the scale during these times, not all deals are the best ones. You still need to be as careful as ever in purchasing real estate.

Before pursuing a short sale…

Many would pursue a short sale trying to grab a good deal. However, before you buy a property with a price that seems too low for the location, asking your agent to investigate if it is a short sale won’t hurt. This is important since you should not just make an offer on a pre-foreclosure, short sale property.

Beware during recession since there are not too many fish in the sea.

Er, properties to buy. Home sellers do know that during a recession, they may not be able to sell their properties for a better price. This means that they would have to wait longer to put their home out on the market. There may be properties for sale, but they get bought quicker, too. It would be helpful if you are prepared enough to make a purchase without dilly-dallying if you really are into it.

Recession or not…

Your decision should not be clouded in buying a property. Always shop for the lowest price, which fortunately is more attainable during recession for buyers. However, do not forget that the lowest-priced property is not necessarily the best one. 

In summary, there are some advantages to buying a home during recession. However, if you do not really have the budget or are not that well-educated in the real estate industry, do not feel pressured to jump in.

Recession, for the uninitiated, is the decline of the economy. It is a widespread decline in the Gross Domestic Product, employment, and trade, which lasts from 6 months to one year. One of its usual effects is running out of funds because of the high prices of commodity and the increase in unemployment rate. So, if you are running a household, how do you make sure the impact of recession will not be too much to bear for your family? Here are some anti-recession tips that you can find useful during these hard times:

Grow Your Own Fresh Produce.

If you have been relying on the supermarkets for your daily meals, it’s high time to consider growing your own food. What can be better than taking advantage of your green thumb to avoid having to buy fruits and vegetables? If you are renting, growing vegetables and herbs in pots, also known as container gardening, can be useful. Mint, sage, rosemary, basil and thyme are great herbs for container gardening. If you do not have enough time, opt for low maintenance vegetables. Examples of low maintenance vegetables include garlic, onions, turnips, cabbage, leeks and kale. Now if you have a bigger backyard, growing your own fruits can be fruitful (pun not intended). Although this might require longer time since fruit trees can take at least about two years to yield crops. You can also do better in keeping a wide variety of your fruits and vegetables through trading with your neighbor’s grown fruit trees, vegetables and herbs.

Make Your Own Meal.

If you have the time, learning how to bake can be one great way to spend your free time. Aside from saving money, it can also be one fun way to relieve your stress. Fast food restaurants can be very tempting but if you have the skills (or not, since you can learn to cook), then why not prepare your own food from your own grown fruits and vegetables and home-baked bread. If you think your skills are too limited, the Internet offers gazillions of simple recipes that even kids can make. Make your own coffee and you can also brew your own beer if you want.

Improve your grocery shopping habits.

With the right shopping attitude, you can reduce unnecessary cost. You can prevent yourself from succumbing into impulse buying. You can do this by creating a list of items to buy before going to the supermarket. One tip is to not go to the grocery to shop when you are hungry. Yes, hunger causes you to buy items you do not need. Buying all the items you need in one go can help avoid using gas for unnecessary trip and also get rids of temptation. Also, before you unloading your cart, check again which items you can do without. You will be surprised that there are just so many of the items that  you picked up that you do not really need.

Cut back on non-essentials.

You like soda? You like steak? But do you like to survive the recession? Then, cut on soda, meat and other non-essentials. You do not have to stop drinking soda or eating meat. But if you will only compute how much you can save without consuming any of these as often as you used to, you will see that it’s enough to tide you over.

In a recent poll involving 1,000 residents of the U.S., 65% said that they think that economic conditions in the country are worsening. Nearly half have already cut back on their spending and almost 20% are apprehensive about the stability of their jobs. Now that recession has finally landed, is there hope for businesses to thrive, much less survive? If starting a business in these tough times is still an option for you, here are the top 5 recession-proof businesses you might want to consider:

Health care

Regardless of the times, someone somewhere will always be in need of good, professional health service. This is an industry that has experienced some significant growth over the last few years. And it doesn’t show any signs of slowing down any time soon.

If you have the resources – training, manpower and capital – becoming involved in a business that offers health services will assure you of a comfortable market. Consider businesses that focus on offering affordable preventive solutions to people, alternative health care and home health.

Food and beverages

We’re not talking about pooling your hard-earned money and starting a restaurant – although if that seems like a feasible thing to do, it just might work. However, going into the restaurant business still has its risk – and a very high one at that.

Instead, you might consider going into a food and beverage business by focusing on offering healthier fare. These days, going into a recession is even a better excuse to eat healthy because it encourages people to cut down on their consumption and to avoid unnecessary purchases.

Consider alternative menus that are tasty and creative or specialized cafes and diners or even vegetarian eateries. Concept plus good taste are usually the best ingredients to a successful recession-proof business.

Funeral services

Yes, this is a recession-proof business, morbid as it may sound. It deals with an inevitability, which means you’ll never run out of customers. You could either get involved in selling services or offering related products. Cremation, which has increased in popularity in the last few years, is also a good option.

Repair services

Repair services are also recession-proof businesses. There will always be people whose kitchen sinks clog, whose airconditioning breaks down, whose roof starts leaking or whose car suffers from overheating. What these mean is pure business opportunity, even when economic times seem shaky. And even if potential clients try to delay much-needed repair, they will still come to you for help eventually.

A caveat: many, if not all, of these businesses require specialized training, skills and equipment. However, once you have these resources, you’ll have access to a recession-proof business that does not only offer a potential for high margins, it’s also a venture that won’t require you to wait too long for a return on your investment. Provided your services are tops, it’s likely that you could be in business for a very long time.

Personals

It may seem surprising but starting a business involving dating and matchmaking could help you tide the recession over. Recession or no, people will always be looking for someone special either for dating or marriage. Already, this business has hit over $650 million in sales.

As a recession-proof business, starting a personals venture could mean good profits and steady work. And no one even has to leave home. Some of the most popular companies today are those that offer online dating (Internet speed dating included) to their clients. With sufficient support, attractive and secure platforms and savvy, targeted marketing, this type of business is set to fly.

The impact of recession can be very damaging not only to households but to businesses as well. Learn about these effects of recession and prevent your business from succumbing into its deadly claws.

1. Customer scarcity

When you have too few customers, consequently, your income suffers as well. The rising prices make customers too picky or less interested in giving you business. Existing customers may also be re-assessing their spending, which results in fewer orders for you. So what do you do? How about changing your customer acquisition techniques? Have you tried online marketing? This may not be suitable to all businesses but there’s no harm in considering it. Online marketing has many forms and doing your assignment will prove to be helpful in determining which technique will benefit most your business.

2. Ridiculously high credit card debt

Inflation is likely to happen during inflation, which means your expenses can be higher than normal. If you have been relying on your credit card for payments, you now need to monitor your spending really closely. This is because losing track of your expenses can surprise you one day when you no longer have enough funds to pay off all your debt. You do not want to have problem with your credit card because a bad rating will not be of great help when you are trying to obtain approval for loans.

3. Increase in cost of utilities

The rising price of food, electricity and gas can put a big dent to your business. This can be especially true if you run your business form a physical location. Increase in monthly bills means lower income. So how do you resolve this? There are so many ways to save money on utilities. One is to cut back on non-essentials. It the weather does not need for a full blast AC unit turned on, turn it off. If you can turn off the lights more often without making the business operations suffer, then do so. If you can use less expensive packaging methods or materials, please do take advantage of cheaper alternatives. Re-assess all the nooks of your business. Take a harder look to your books to get deductions. Lessen expenses in every way possible. Make the most out of technology. If you can automate parts of your business, do so. You can also hire contract workers such as virtual assistants to help you be more productive and to allow time for you to brainstorm on how to improve your business.

4. Funds gone kapoot

If you started your business using a loan, you might find yourself out of savings to fall back on if you need funds to survive the recession. To control this, have a suitable savings plan, wherein you can put in some of your income. This allows you to have a backup plan whenever the current downturn happens.

5. Low staff morale.

Slow periods mean sadder employees. Why not add incentives and create contests to boost the morale of your sales team? This is the best time to get your creative juices flowing to help motivate your employees. Having motivated employees means increased sales. So, don’t be too stingy with incentives and praises.

Have you felt any of these yet? If so, what are you waiting for? Try out the suggestions on how to control the effects of recession.

Ask an economist to define recession for you and chances are, they’ll tell you that it is a state of the economy where it declines for at least 6 months. But that’s just a pretty, picture-book definition. Recession can affect not just cities and countries, it can also affect individuals and families on a more personal level. To help you implement tax and personal anti-recession steps, here are things you can do:

Start saving. Now.

If you have a nest egg stashed somewhere, good for you. Boost it with more savings. If you don’t, it’s time to start immediately. Implement tax and personal savings steps in order to fight the effects of recession.

Cut back on spending immediately.

If you think you need everything you buy, gather your last few weeks’ worth of receipts and rate each item according to necessity. Chances are, there are a few things there that you’ll realize now that you didn’t really have to buy.

If you see the same pattern in most of your receipts, that’s a sign that you ought to cut back on your expenses and seriously implement a budget or spending plan. You could, for example, cancel gym memberships and take up running or home exercises instead, buy items on sale instead of at regular prices and put off any large purchases – cars, TVs, video equipment, furniture, etc.

Take big chunks out of your debt.

Your debt can get you down and it will not hesitate to do the same thing to your credit score. During a recession, a bad credit rating is just not something you want to have. If you have debts in some form (loans, credit cards, mortgage, etc.), try to pay off as much of your debt as possible. The earlier you do this, the better it will be for your finances.

Clearing your debts is an excellent anti-recession step because it helps save you money in terms of interest. It will also give you peace of mind and the personal satisfaction of being in charge.

Consider investing? Ask a professional.

An experienced financial adviser can help you understand the kind of options you have, given your own resources and the type of risks you are willing to take. Recession can make investing much more of a challenge, particularly for the uninitiated. That is why you’ll need all the help you can get in order to find the best places where to put your money in.

Know your deductibles.

Review your tax code for the types of items that you can include in your deductibles. Remember that not all expenses can be used as deductions. Only if you can prove them ‘ordinary and necessary’ will the tax man consider them.

Keep all receipts for deductions.

Audit or no audit, it pays to have documents that support your tax claims, especially if they refer to deductions. Get organized regarding your files, particularly those that pertain to your business or work. Keep things where you can readily access them and use for reference later.

Consider leasing your business vehicle.

If you want to give yourself better tax performance, a good anti-recession tip to follow is to lease that car of yours. This will help get you better deductions compared to what you’ll receive if you purchased the vehicle.

When in doubt, always refer to a professional.

The personal anti-recession tips you obtain will usually work seamlessly but some steps involving taxes might have certain limitations. Before implementing these steps, you might want to consult a basic taxation guide or see an accountant or bookkeeper. They can guide you on what you can and should do based on your own unique circumstances.

Recession can be a very stubborn thing.  Once it drops by, it can take a while for it to fade away and disappear.  However, that doesn’t mean that we should simply sit back and let it overcome us.  It can, after all, wreck havoc on our finances and personal lives.  In these tough times, finding a job already seems improbable – just imagine being in the market for jobs that are not affected by recession.  But take heart.  There’s still hope yet.  Here are top 6 tips for finding recession-proof jobs:

Look for jobs in secure industries.
If you’ve read the news by now, trying to get a job in an auto plant is like trying to get on an elevator that’s going down – and you’re trying to go up.  The same is true if you’re trying to get a leg in real estate.

Instead of wasting your time trying to join an industry that’s experiencing some bad times, try to set your sights on industries that have remained stable or are experiencing growths. 

These include:

- Health care (nursing, caregiving, special care, medicine, physical therapy and other support manpower)
- Law enforcement
- Information Technology (network administration, software design and development)
- Support Services (customer service, administrative assistance)
- Sales and business development (product management, retail and wholesale)
- Engineering
- Education (teaching, school administration and other related support services)

Boost your resume.
If an employer sees nothing promising or exciting in your resume, they won’t think twice about throwing your piece in the trash bin.  Before you try to hook a recession-proof job, consider revamping your resume right now.  Take a copy of your latest and review it.  If your resume is several months old, there’s a high likelihood that it needs a makeover. 

Focus on accomplishments.
A common error among jobhunters is detailing their job descriptions in their resumes.  Although this is helpful in establishing their work experience, it may not always give the prospective employer a good idea of what you can do.  Emphasize on the results that you have produced instead.

Adapt your resume.
Typing out and printing a generic resume is a huge mistake.  Generic is average, which means that you have very little to help you stand out from the crowd.  If you want a recession-proof job, make sure your resume is something that your employers will find attractive. 

Consider the industry you’re targeting.  If the job calls for someone who has a strong sales experience, emphasize your sales background.  If the job calls for someone who had been involved directly in marketing and promotions, show your qualifications in these departments.  The more relevant your resume says you are, the better you’ll be at landing a recession-proof job.

Expand your reach.
Other than advertised job vacancies, consider other venues for finding recession-proof jobs.  Look for trade magazines, papers, clubs and associations.  You could also tap your network of professionals in the same field.

Get further education.
In tough times, you ought to arm yourself with tougher credits.  One is by obtaining additional training or education.  Getting certified or expanding your professional qualifications will help make you a more desirable hiree. 

Recession-proof jobs are usually the most popular among jobhunters who are probably considering the same strategies as you right now.  It’s likely that for every recession-proof job that is available out there, there are thousands of other jobhunters out to get it.  If you have better qualifications courtesy of better training and experience (in case you’ve had hands-on education or internship), you’ll come out as the best, most capable candidate.

One of the ways to cope with recession is considering a career change. Not too many likes the idea of changing career plans during a downturn. However, if you have already felt the effect of recession – say you’ve been laid off, why not give a different career path a chance, right? It may not have quickly crossed your mind to prioritize job security when choosing a job. However, whether you are choosing your first job or making a switch, it can be helpful, particularly during our present economic situation. Indeed, no job is 100% secure. But there are some industries that have workers feeling more confident that even if they get fired, the demand is so great that finding another job would be very easy.

So how do you choose a career that’s right for you during a recession? Here are some recession-proof careers that are worthy of consideration:

Education
There is a great shortage of teachers. No matter how down the economy is, teachers will always be in-demand. Children will continue to go to school. Also, lots of unemployed adults may decide to further their education. Although teaching is not one of the highest-paid careers there is, making only about $30,000 to $45,000 a year, people will still settle for a career that does not earn more because they are tired of being unemployed for a long time. This is especially true for those who would want to try something new anyway or those who despise the roller-coaster rid that a corporate life offers.

Healthcare
Job hunters with Information Technology background are said to be a good fit to the healthcare industry – particularly nursing. This is because Nursing is an information-driven career. And, it is one useful career during a recession because healthcare is an industry that does not usually get affected during these times.

Auditing
Auditors are also usually unaffected by downturns. In a recession, individuals and firms are more probably doing their best to get more deductions. More people are monitoring their books, so the demand for auditors or accountants is much greater.

Energy and Utilities
Energy consumers may cut back, but the consumption will not stop. The same with utilities, people will still light their homes. So, jobs like maintenance and utility administration prove to be more stable than others during a recession.

Pharmaceuticals
As long as physicians prescribe drugs, people are still going to take them. This means that if you are working as a pharmacist or as a quality assurance analyst in pharmaceutical laboratory, you are in good hands.

Military
Since the military is always hiring, particularly during wartime, during a recession soldiers will not be that affected. Serving the military also means that most of your living expenses will be covered.

Security
Recession does not stop crime. With the increase in layoffs, more people are considering robbing banks and doing other crimes. So, the need for security workers becomes greater.

Environmental Sciences
The convenient truth is that the eco-friendly trend is not going anywhere. This means that choosing a career in environment-care-related industries can be a good career choice.

Government
Working for the government can be one of your best choices during this downturn. This is because many stable jobs can be found in the federal government. The government will not cease from functioning even during crisis.

With that variety of career choices, it will not be that difficult to find one that will save you from this economic situation.

Economic recession, when you consult the books, is actually pretty common. Economy like everything else in life is a cycle. There are ups and there are downs. After enjoying fruitful years in the past, this is United State’s time under the wheel. Unfortunately, what is different from this year’s economic recession is the fact that it is much worse than the recession times of previous years. This is perhaps brought on by companies that are not performing well and the rising rates of foreclosures in the real estate industry.

But like everything else, dealing with economic recession is easier than it seems especially if you do have a steady income that you can rely on. The only secret to dealing with the economic recession is to save up. Here are some of the things that you can do to better deal with economic recession.

1. Don’t waste
Although this should be done whether there is economic recession or not, learning to save whatever you can is a crucial part in surviving these hard times. And what is more, it is so easy to do. You only have to remember to only use and buy things that you feel you can use. You can start with telling your kids to only put food that they can eat on their plates. If they finish them off, then they can get a second helping. You should also tell them that they should clean their plates all the time because food is expensive. This is a great thing to teach your children as this will allow them to learn how to live during tight times.

2. Plan and organize your life
Planning can save you a lot of money, energy and gas. In fact when you organize your schedule, you will see how you are less stressed out about things. Your activities and errands will flow more smoothly and things will be easier to do. For instance, when buying food it is good to have a list of items that you will be buying. This list of course will depend upon the meal schedule that you have already prepared for the family. That way, you already know how much you will have to purchase. No wastage. No leftovers. This saves time and money.

Another area that planning can have a benefit in is in saving gas. When you have mapped out your activities for the day, you can plan where to go first and then the next. This way, you don’t have to go back to the same way you traveled or go on a separate trip just because you forgot to take the clothes to the cleaners or you forgot to go to the grocery store.

3. Take advantage of discounts
Because there isn’t much people buying stuff, a lot of stores are constantly devising ways to get customers in. Take advantage of special promos and discounts.

4. Save money
During an economic recession, you won’t have any idea what will happen. The best thing you can do is to prepare for any eventualities and hope that you will not suddenly lose your job or suffer from the effects of the recession. To be sure, it is good to save money in the bank. Cut back on expenses that are not important.

That way, you can save enough for the future so that you will have something to use just in case.

Economic recession may be normal occurrence but it does not mean that it cannot hurt you. In Economics, recession refers to the period in a country’s economy when there is slowing down of progress and rising inflation rates. Like a cycle, a country’s economy is sometimes up and sometimes down. We just don’t feel it before because the economy oftentimes bounces back fast. It is only now that recovery seems so slow and damage has become far-reaching with the crashes in the real estate industry as well as to the banking and insurance sectors.

So what makes an economic recession? What do you need to know about it and what is it all about?

1. Rising costs of living
Because of the slowing down of the economy, production will not be as active. This stems from the lesser demand that comes from the consumers. When this happens, prices will rise as there will be lesser products in the market than before. Basic commodities will usually rise especially those that people consider as basic necessities such as food, shelter and home. Oftentimes, what you will normally be able to buy for a specific amount money will not be as many. This is when we say that the value of the money lessened.

2. Job cuts
During recession, many companies will suffer from cash flow problems. Because of the lesser demand, more and more companies will shut down their production lines to cut costs. This leads to cutting off jobs just to make both ends meet. Right now, many companies in the United States have already done job cuts. Although it does not sound good, these companies do not really have a choice as often, they will need to let go of some employees to keep the company running and still employ the others.

3. Expense cuts
Because people do not have much money in their pockets, most of them will be scrimping on their expenses. They will only buy things that they need. Some do this because they want to save their money while others do this because they don’t really have a choice, having a much lower income than before. This however contributes to the economic recession as low demand will also lead to low supply which can affect company earnings. When this happens, jobs may become at risk and companies may suffer from financial losses.

4. Political turmoil
Although it is not often the case, most countries suffering from economic recession will have political turmoil. This is especially true if the country has not responded to the economic recession well and the situation has ballooned 10 times over. When this happens, people will naturally blame the people in the government and their policies. This is the time when people troop to the streets to protest or they announce their displeasure through surveys on job approval ratings of government officials.

5. Tax cuts
Because of lesser income and less value for your money, the government tries to augment people’s financial problems and also to help companies by giving people more money that they can spend on basic goods. They do this by giving back to their people a portion of their income— tax cuts.

In this instance, the government is cutting off the income that they get from people in order to stabilize the economy during economic recession.