Financial Coaching Blog,  Healthcare Professionals

How to Be Economically Immune in Today’s Society

I was listening to a Podcast yesterday where a couple had paid off 1 million & 35 thousand dollars worth of debt and they achieved this feat prior to the pandemic. They went on to mention the term, “economically immune”. That terminology sums up exactly what it means to have “financial health”.

Stop Searching for a Recession Proof Career

The economy will always have its ups and downs. At the very least it will remain unpredictable. Some financial folks discuss having a ‘recession proof’ career. I do not believe such a career exists, however, I do believe having a ‘recession proof’ lifestyle is more realistic.

How do you build a ‘recession proof’ lifestyle?
  • Make a budget. Schedule weekly/biweekly/monthly budget meetings with your spouse. But don’t call it a budget meeting. Call it “Date Night with Numbers”. Make it fun!
  • Build your finances around your “4 walls” as Dave Ramsey calls them. Transportation, Food, Housing/Utilities, & Clothing. These are the essentials.
  • Make a spreadsheet. Set it up so you can add the income and deduct the expenses. Identify the categories for your expenses. Most banking apps will do this generically for you to help track them.
  • Use apps like Expensify to capture your receipts. Setup each expense report to match each category you designated on your spreadsheet. Compare at the end of the month.
  • Cut out unnecessary daily expenses. Did you know you waste $10,000 a year by spending just over $27 a day?!? Keep that $10k and stop going to Starbucks every morning and eating out for lunch everyday.
  • Who doesn’t love brunch? We certainly do, but limit that to maybe once a month, instead of every weekend. From personal experience we were spending roughly $60 every weekend!
  • Build up your savings and determine your savings rate. This is a percentage of your income set aside for your emergency fund. Start small and work your way up.
  • Find a creative lifestyle. Can you work remotely? Maybe your job can be done from the road? Maybe you can travel to High Cost of Living areas to maximize your salary, but pay Low Cost of Living prices? We call it “Geoarbitrage”.

What ways can you build your recession proof lifestyle?

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