Be prepared financially to survive a recession
Want to learn how to brace yourself for a future tumultuous economy? Economists are warning the public that a recession is imminent following a strong bull market. Take some notes so a market downturn doesn’t become a white-knuckle terror ride. A recession is expected to arrive around 2021, so you have some time to get ready
Fortify your mental defenses
What goes up must eventually come down. However, it is important to not stress about the economy and stock market’s roller coaster behavior. Reducing your anxiety and panic by being mentally strong and being prepared will be your largest asset.
Assess your income, investments, and savings to fortify your money against a recession.
Double down on debt
When there is an economic downturn, one thing you don’t want an excess of is debt. Seek a consultant to consolidate your payments. Reduce your credit card spending, and aggressively reduce any debt that you may have.
Find ways to take on less debt every month, and spend more money paying down bills and avoid late payments.
Give your savings a boost
The average American cannot spare an extra $500 in case of an emergency. Recession proof your life and try to save enough money equal to six months of your living expenses. Reduce your spending where you can, and put your money in an online account with a higher yield.
Grabbing a side hustle can help increase your income to put toward savings.
Spruce up those skills
Don’t take your day job for granted, or how long you have been employed at a company. There is always room for you to learn new skills and increase your attractiveness to a prospective employer. When a recession hits, there may be more layoffs or a hiring freeze.
Picking up a side hustle can help you learn new skills and increase your income.
Diversification is a money maker
Out of fear, many people may keep all of their eggs in one basket. However, only placing your income in safer bets like a CD or a saving account may reduce the power of your money. Reduce investing risks by getting a professional consultation for your portfolio. Diversifying your income helps strengthen how well your money works for you, and improves your odds.