The economic downturn is at risk of catching many Brits by surprise, and we have been urged to recession proof our income. Fool.co.uk have released figures which show that 70% of the employed have less than 20% of their monthly income remaining after all living expenses have been paid for.
This could lead to many seeking debt help and advice, especially as unemployment has been predicted to rise by 200,000 by the end of 2008. Many of us need to take better control of our finances, especially as one in eight people are currently spending more than they earn.
David Kuo, head of personal finance at Fool.co.uk, said: “We are only in the early stages of a recession so we have yet to feel the full impact of the economic downturn. Consequently, it is important to tackle our finances head on now before it is too late to do anything about it.
Tips to Recession Proof Your Income
1: Save More– With the risk of unemployment on the increase, it is essential that those who are in employment begin to save more of their salary. Challenge yourself to save a certain amount each month and put this in a high-interest savings account.
2: Spend Less – To compliment the above tip to recession proof your income, it is essential that you are spending less on a monthly basis. This might mean cutting back on treats, such as glossy magazines or the morning shop-bought coffee.
3: Examine Your Debt – You might find that points one and two are almost impossible as you have a high percentage of your outcome going out on your unsecured debt. If you are struggling and have began missing payments then it is essential that you seek expert help ASAP. One Advice are a leading debt solutions provider and we can help you reduce your outgoings to your debt.
Take the 1 Minute Debt Test to see which debt solution is right for you.