As reported by the Guardian, the UK economy shrunk by 0.1% in the second quarter of 2022. While it is not as bad as it was during the onset of the pandemic, experts consider this figure as a sign of further downturn which will be experienced in the coming months. For most seniors, this might not be the first recession they’ve had to handle, but being retired means you’ll need to adopt a different approach to remain financially healthy. In this article written by Andrea Needham for inclusion in the Wise Old Owl Information Portal, we’ll explore the best steps seniors can take to survive and thrive during a recession.

Increase your Savings

One of the best things to do during a recession is to have cash in hand, whether it be for day-to-day expenses or emergencies. Refrain from using credit to pay for expenses, as during a recession, it is expected of the government to increase interest rates and make it expensive for individuals to undertake debt.

If you’re wondering how to increase your cash, the first step is to review expenses and eliminate all unnecessary spending which can include shopping, leisure activities, OTT subscriptions, etc. While you can continue to spend money on these, your goal needs to be to curb excess spending and lean towards a frugal lifestyle.

Additionally, focus on increasing your emergency fund. Ideally, your fund should have enough money to cover costs for multiple months. If you have any risky investments that you put money towards before the recession, speak with your financial advisor regarding the feasibility of selling those for generating money for the emergency fund and limiting your losses due to the oncoming economic downturn.

Start a Side Hustle

Another great way to generate funds is to start a recession-proof side hustle. Even during an economic downturn, certain jobs remain in demand, such as:

● Childcare: Hiring professional childcare services can become expensive for parents during a recession. As a senior, you can offer childcare services at much cheaper rates and earn a weekly income. Depending on your preference, you can choose to care for kids of a certain age.

● Accountant: If you’re good with numbers, opt to work as an accountant with local businesses to help them balance their books to minimise the impact of the recession on their profits. You can advertise your services online and work with independent business owners as well.

● Freelancing Services: This category includes jobs of all types, such as content writers, business consultants, project managers, etc. During a recession, it is common for companies to reduce their wage burden by hiring freelancers for project-based roles. As a freelancer, you’ll be able to choose your clients and have control over work hours and compensation.

Start Budgeting

To stay on top of the numerous financial adjustments you seek to make, it is important to create a budget. Here are a few key pointers to keep in mind during budgeting:

● Pay Down Debt: Review your repayment burden and create a schedule for going debt-free as soon as possible. This will involve prioritising money toward making larger repayments and avoiding taking on any new debt.

● Apply for Government Benefits: As a senior, you are entitled to various benefits which can help afford utility bills, use public transport, buy groceries, and more. According to Unbiased, here is a comprehensive list of options for you to explore.

● Use Excel: Excel is a powerful tool using which you can accurately group expenses, easily complete complex calculations, and much more. Additionally, if you run a side hustle, you can insert your PDF invoices into the excel sheet to include those numbers as well. If you have never done this before, follow these steps to embed a PDF into your excel budget sheet.

The impact of the recession will be felt by households across the country, but by planning ahead and making smart money decisions you’ll be able to minimise its impact on your finances. Additionally, by starting a recession-proof side hustle, you’ll be able to earn a steady flow of income which will help pay bills and avoid undertaking debt.

It’s important to care for the older adults in our neighborhoods because often, they have no family members or close friends nearby to help them maintain their quality of life. In fact, sadly, our seniors are often targets of neglect and abuse as well! So here’s some advice sent in to WOO by Andrea Needham on how you can help those members of your community who need it most.

Health and Fitness

Health is the cornerstone of a good life. Here’s are a few ways to help older adults stay healthy:

● Offer to bring them a nutritious meal or try cooking a new dish together.

● Show them relaxing, stress-reducing activities that can help them get into a consistent sleep routine.

● Help them stay physically active by connecting them with a local fitness club. Swimming, cycling, and walking are popular exercise styles for older adults!

Everyday Chores

Many seniors deal with mobility problems and other issues that prevent them from managing daily tasks. Here’s how you can help:

● Spend an afternoon decluttering and cleaning a senior’s home to aid in stress reduction.

● Hire a handyman or contractor to make any necessary repairs to the property.

● Offer to drive a senior to doctor’s appointments and run other errands with them.

Life Planning

Older adults have to make a lot of decisions concerning their life and well-being. Consider these tips for helping a senior in your life navigate such challenges.

● Help them develop a budget that allows them to live comfortably. While you’re at it, you could bring in an advisor to discuss financial planning options!

● Help them get connected with a community of believers, and go to church together!

We are called to honor our elders, and one practical way to do that is to find seniors in your community who need assistance. Consider the tips above for helping seniors to stay healthy, tackle everyday tasks, and make important life decisions. Not only will you be doing the right thing; you’ll quickly notice it enriching your own life!