Great Recession taught me lessons that still apply now

For those who ve been through one talk of a recession can be triggering We re not officially there yet as of this writing but it s natural to be anxious about increased prices due to tariffs and the likely aftermath Related Articles US applications for jobless benefits hold firm as layoffs remain low despite tariff uncertainty Wall Street global markets mostly lower and oil prices drop on hopes for a US-Iran nuclear deal Walmart says it will raise prices due to tariff costs after posting solid first quarter sales Obituary Mpls St Paul Magazine publisher Burt Cohen and a half was humble self-aware and unfailingly witty Woodbury getting a PGA Tour Superstore this summer Nearly in Americans have concerns about the tariffs with one of the top worries being the tariffs resulting in a recession a NerdWallet survey unveiled I recall how the Great Recession demolished jobs across the U S including mine After graduating in I worked four months as an entry-level executive assistant at a nonprofit before being laid off I had limited financial knowledge a short work history and a lot to prove to break into the field of journalism my ultimate goal Along the way I picked up valuable lessons that might help you manage your finances in a shaky financial sector Save what you can My short work history disqualified me from receiving unemployment benefits so I relied on my savings account Even a small emergency fund of can prevent you from falling into debt and I had socked away enough to cover a scant months of expenses If you re still employed pay yourself first mentioned Samuel Deane a financial planner at Rora Wealth an independent financial advisory firm Even if it s every time you get paid make sure you put that away first and then live your lifestyle with the remainder Automate it with direct deposit if you can If you ve lost your job saving will obviously be tougher Apply for unemployment if you qualify and contact your landlord creditors area nonprofits and any options you might have to seek relief If you re still employed but have had your salary cut consider taking on a side gig downsizing cars altering your living arrangements and trimming other expenses Think twice before rejecting job offers After a great number of interviews and dead ends I applied for an administrative role at an accounting firm and got hired in December It paid about less than my previous salary I knew it wouldn t put my career on track but it would cover bulk of my bills so I took it Amanda Grossman now a certified financial guidance instructor based in Virginia made similar compromises after being laid off as a sphere researcher in Florida in She took a career counselor s advice and relocated to Texas for a lower-paying job in the environmental industry The counselor explained Look the economic system is not doing well You need to take that job it s going to keep going down you re not going to be able to find work Grossman declared If your sector is hurting and unemployment benefits or savings are lacking even a less-than-ideal role can help you ride out a recession Get smart about money You ll find a myriad of financial literacy tools online and at your local library I struggled to save money on a lower salary Credit cards became my exigency fund I don t recommend this approach but times were tough Had I learned about trainee loan repayment options and debt consolidation options I would have saved heaps on interest and ditched debt faster I wish I had made these financial moves Used a balance transfer credit card Paying the fee and moving my debt to a new card with a lengthy APR window would have saved lots of money Met with a credit counselor A counselor could have reviewed my budget and evaluated whether I qualified for a debt management activity that consolidated eligible debts into one single payment with a lower interest rate for a fee Called my credit card issuer to understand my options I could have sought about a financial hardship plan early on to keep debts more manageable Depending on your situation you can ask for a credit limit increase negotiate your interest rate or request a product change to a credit card that doesn t charge an annual fee Financed purchases strategically Instead of charging purchases at a high interest rate I might have qualified for a new credit card with a introductory APR If you can t qualify for this offer these days several issuers let you borrow against your credit card s limit for a fee or a fixed interest rate Establish multiple streams of income I still sought journalism experience and extra income so on top of my new full-time job I learned to shoot and edit video I began freelancing in A year later I also launched a small social media consulting business Grossman too had other goals I ve perpetually sought to be a writer and I love love love talking about money she mentioned While she was unemployed in Florida she launched the blog Frugal Confessions She learned new writing skills from books and sought feedback from editors at newspapers In she left her environmental job in Texas to run her blog full time Protect your credit but protect yourself first In a recession or during trying economic times a multitude of normal financial rules don t apply You may need to carry a credit card balance to buy groceries or address an emergency You may need to make only the minimum payment to cover rent Even with three jobs I struggled at times to make the minimum payments on my credit cards due to high balances and interest rates I never defaulted but I did stress and scramble over it I needed a record of on-time payments and the good credit they build so that I could qualify for the low-interest rate offers I m eligible for now That s a worthy goal if you can swing it but in times of exigency prioritize paying for essentials like shelter food utilities and expenses that help you work Eventually you ll have time to address your credit scores Make calculated money moves Eventually I left my apartment and moved in with roommates I also read the post-recession state and in successive jobs learned how to ask for a raise Every year that my workload and responsibilities increased I made a affair for a higher salary Asking is uncomfortable at first but it gets easier The extra money eventually paid off my debts A recession s impact is largely out of your control but your reaction isn t With strategic actions you can insulate yourself and create new opportunities More From NerdWallet Smart Credit Card Moves to Make in a Recession Credit Card Coupon Books Love or Hate Them They re Here to Stay How Buy Online Pick Up in Store Supercharges Credit Card Rewards Melissa Lambarena writes for NerdWallet Email mlambarena nerdwallet com Twitter LissaLambarena The article Great Recession Taught Me Lessons That Still Apply Now originally appeared on NerdWallet