4 Strategies to Increase your Capacity to Absorb a Financial Shock

Financial Well-Being Matrix

Recently the weather gave us notice that Nature was about to bring about a season change.  Like it or not, ready or not the seasons will change. According to wise King Solomon in Ecclesiastes, everything under heaven has a season.That would include the American and global economies. And importantly, seasons change.

The economy's season is changing. Possible recession, the impact of tariffs on prices, and stagnant wage growth. In the words from HBO's Game of Thrones, "Winter is coming."
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​Part of financial well-being is "the capacity to absorb a financial shock." The key is your CAPACITY.  Here are four strategies to do now to increase your capacity.

1. Eliminate debt. Start with high-cost debts. Debt service requires future earnings. Uncertain in a recession.
2. Pay attention to the country of origin on purchases. Tariff or no tariff?
3. Increase your cash accounts. Cash is king in a recession.
4. Go into modified austerity mode. Cut expenses hard. Not on the good stuff you really care about; just everything else.

​check out ways to save money this week on our FB feed

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