Four Habits You Should Keep After the Recession

Most people have made at least some adjustments to their budget in the wake of the recession that is hopefully approaching its end. But just because the recession is ending doesn’t mean that your effort to exercise sensible financial judgment needs to end too. By keeping at least some of the adjustments you’ve made in place as the economy recovers, you’ll find yourself getting ahead faster and in a better position the next time for economy slows down.

-Stay Frugal: If you found yourself doing little things to save money like shopping with coupons or buying generic brands at the grocery  store, there’s no reason you need to stop doing that just because your job seems more stable. If you were paying down your credit card debt and trying not to make new purchases with your credit card, keep moving in that direction. This recession has taught many people that they can live on less than what they were used to and still be happy. It takes some effort to keep within the guidelines of a budget, but it’s a great habit to be in no matter the economy.

-Continue Your Education: Many people decided to go back to school or take additional courses during this recession in order to keep themselves sharp and keep their resumes polished. Growing yourself professionally through additional education can do nothing but help you in your career and there’s no reason to put that education on hold with the economy strengthening. Find out if your employer will subsidize your education and find a way to finish what you’ve started. Even if it doesn’t pay off immediately, a higher education will always pay dividends down the road.

- Continue Saving Money: The numbers on how people have increased their personal saving rate during this recession are staggering. If you have gotten into the habit of setting some money aside each month for an emergency fund, continue building that fund. Most people should have between 3 and 6 months worth of living expenses saved in case of a job loss or some other unforeseen event. The government is also discussing offering incentives such as tax credits to those who save, so being in the habit of saving will make it easy for you to take advantage of those incentives.

- Re-connect with Your Financial Team: Your banker, accountant, financial advisor, mortgage broker, and other financial professionals that you work with have been on a violent roller coaster ride for the past two years. Communication with these professionals is more important than ever so you can see if anything has changed with your professional relationships. Your bank may have changed hands, your mortgage lender may no longer be in business, and you’ll want to have these relationships in place the next time you need help with a financial matter.