With the rising price of groceries, used cars, and other necessities in the United States, economists are warning about the potential for a recession in the coming months.
Business owners owe it to themselves, their family, and staff to take steps now to weather the turmoil ahead.
A good first step toward stability is to start with reducing debts, both personal and within your business. You can also look for ways to supplement your earnings to prepare for economic uncertainty.
Here a few tips on what you can do to now to have solid ground beneath you in case of a recession.
Back To School
We know what you’re thinking: how can I possibly go back to school now when what I need is money? The truth is that you can still work while going to school, and you have plenty of choices (here’s a link to see your options for business degrees). You might also consider getting certified in accounting, and Universal Accounting School has the perfect solution to help you work either part-time or full-time in the accounting industry. Earning your degree or certification now puts you in a better position to earn more throughout your career.
Drop Unwanted Subscriptions
Maybe you signed up for a free trial of software you thought you would use at work. Or, more likely, you’re inadvertently paying for a video game or streaming TV service that you’ve long forgotten about.
While you might not notice $4.99 here and there being charged to your credit card, the subscriptions can add up. There are apps that can help you manage these charges and keep only what you want.
Always Pay On Time (Or Sooner)
When it comes to business, you have to spend money to make money. But, you may be able to spend less of your hard-earned cash if you pay on time and avoid late charges. Many companies may even be willing to offer a small percentage off for paying your bills early.
But even a small portion of saving, around 1% to 2% per C2FO projections, paying early can get you, adds up to a hefty amount at the end of the year for large orders.
Check Your Employee Benefits
If you have employees and offer them benefits, now might be a great time to ask about which ones they’re using and which ones they are not. A few of those perks that you thought were innovative, like shared sick days, an animal-friendly workplace, gym memberships, and snack bars, are ones that you can probably eliminate without any pushback whatsoever. Instead of these, offer your employees more flexible hours and remote work, if possible. TheStreet explains that this will save you money, and your employees will appreciate having more time with their families.
Quit Using Credit Cards
While you may have to use your credit card for professional purchases, avoid charging anything in your personal life. Even if you’re currently using a promotional rate, keep in mind that interest can jump from 0% to 36% or more, meaning that you may pay back $36 for every $100 you borrow each month, and that is assuming you pay on time.
The economy continues to be uncertain, and that means it’s time for you to put steps in place to increase your income and reduce your overall debt load. Whether this means going back to school to make you a more valuable employee/entrepreneur in the future, swapping out your employee benefits, or simply paying on time, everything you do matters, and every little bit adds up.
Call 877-801-8080 or schedule a call with Universal Accounting School today if you’re looking for a pay increase, to start a business, or to offer new services to your existing clientele.