1. Pay off your credit card bills. This may seem obvious, and yet, it’s so easy to leave a balance.
2. Find a high-yielding savings or money-market account. Transfer your funds to an account that earns higher interest, and keep saving. Consider the stability of the bank you choose as some of the newer (but less established) banks will guarantee higher yields just to bring in business. Make it a habit to set aside a certain amount of your paycheck every payday for this.
3. Pay off any loans. In these times of high interest, it pays to be a lender and not a borrower. So pay off any loans you have and live interest-free.
4. Stay liquid. Since financial markets are very unstable, the height of a recession or economic crisis is not a time to make any bets on the stock market, unless you are advised by a professional.
5. Live simply. Refrain from major purchases and determine your real and perceived needs. Now is a time to save for a rainy day, to save and not to squander.
