 TITLE: How Should I Pay Down Debt During a Recession? CONTENT: How to Budget and Save Money in a Recession\n-------------------------------------------\nIt's never a bad time to create a budget, but if the economy is in a recession and you're impacted personally, making a budget is an especially valuable practice. Budgets can help you live within your means, pay off debt and accomplish your financial goals.\nTo create a budget, you'll first add up your monthly household income. If your pay is irregular, you can use an average from the past few months.\nNext, you'll tally up your monthly expenses. It's helpful to refer to your bank and credit card statements from the past few months to make sure you're looking at the complete financial picture. Group your expenses by monthly fixed (necessary) costs such as rent and utilities, and variable (discretionary) expenses, such as eating out and entertainment.\nThis process accomplishes a few important things. For one, it helps you see how much money is coming in and how much is going out, which can be eye-opening. If you spend more than you make, it means you're relying on debt to get by. Listing everything out can help you determine which discretionary expenses you can back or remove during a tough financial period.\nIf you can reduce your spending, you may be able to carve out room to put more money toward your debts (and maybe even some toward savings).\nIf your necessary monthly expenses (not including discretionary spending like Netflix) exceed your income and there's nothing else you can cut out, you may need to find additional sources of income to avoid accumulating more debt.\nAdditionally, there are ways to make money fast in a financial emergency. For example, you could take on gig work, such as grocery or meal delivery, or find people looking to hire those with your skills (such as tutoring, gardening or handiwork). You can also try selling belongings you no longer need. END