Preparing For A Recession

Preparing For a Recession


Hello Rookies!

A recession can be thought of as a situation where trade and business decline as a whole on a massive scale.  In today's international world a recession in one major country usually has an impact on all others that also trade with it and vice versa.

Even if you do not own a business a recession can definitely impact you in the form of job loss or even higher prices for basic goods such as food and gas.  Imagine you work for a company that  sells  electronics - then one day a recession hits and a large portion of the country either lose their jobs or withhold spending on luxuries.  Suddenly your company may no longer have the sales and profit to justify your job resulting in mass firing.  Such a scenario makes a recession everyone's concern.


Like all expected financial matters - thinking and planning ahead of time can help prevent a lot of financial pain and regret later.  While you can not plan for everything and not everything on this list may be within your reach perhaps you can make a few changes to your routine now to help you get as close as possible:


 Make An Emergency Fund ASAP

All financial advisors will tell you to save at least 3 months worth of expenses.  Some even 6-12 months worth.  This means if you were to lose your job today you could afford your mortgage, your car, your food and every other recurring monthly expense for the next 3-12 months.  If you have not already started an emergency fund this is a must for anyone that wants to be protected during a recession

Pay Off Your Debts ASAP

Debts are pain when times are good - but they can cause havoc when times are bad.  Being debt free is a way to remove liabilities off your monthly expenses which can in turn also result in a smaller emergency fund being needed.  Focus on high interest debt first such as credit cards and then on lower interest ones such as car or student loans

 Review Your Expenses

Make a list of everything you spend money in a week and then in a month.  Look for things that can be cut out of your weekly routine.  Cutting unnecessary expenses will free up extra cash for a raining day and also help you adjust better if you were ever forced to cut out extras you can live without

Side Gig

 We are all familiar with saying of not putting all your eggs in one basket yet most of us do this with our income.  If you have a day job think of ways you can earn extra money on the side in case a scenario where you find yourself without that job

 Review Your Resume

Update your resume and have someone review it.  Keeping your resume up to date will make sure you are ready to apply immediately if need be 

Network 

If no one knows you exist they can't hire you.  Keep in touch with old colleagues and use social media to spread your professional self to the world.  Sign up with job search engines to stay up to date on all the latest job postings









Since a recession can affect you at anytime and is unpredictable keeping up with the above tips could help you be in a better position when a recession does occur







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