FTC: This post is not sponsored, and I am not a financial advisor. All thoughts and opinions are my own.
If you’re afraid of what is going on in I’m sure you have heard of the term recession before, and it is constantly being thrown around during these last few difficult weeks. The stock market is in shambles, and people are extremely paranoid with good reason. So what is going on, how can you prepare for the worst and come out unscathed.
How To Prepare For A Recession
A recession is a decline in economic activity. And you must truly know/understand the complexities behind it, so you know how to properly prepare for a recession. With a decline in economic activity, the economy becomes extremely stressed which makes things a lot more difficult for businesses (particular small businesses). As businesses finances become more stressed, we enter into a vicious cycle of hiring freezes, layoffs , and an increase in unemployment.
This will then lead to: 1) fear of spending – which makes things worse but of course is an understandable human concern 2) less opportunity for raises and growth at your current job– places of employment also become scared and offer less financial opportunities for growth.
Here’s a few things you can expect and unfortunately may have to deal with:
- Employment: During a recession it can take 6-12 months to find full-time work and it can be very difficult to avoid layoffs.
- Build an emergency fund: I know I know … everyone and their mama has been stressing the fact that having an emergency fund is crucial to survival during a recession. I don’t 100% agree… and I definitely don’t disagree. It is a slippery slope, as I believe the real way to save more money and build this emergency savings fund in order to prepare or a recession, you will have to make more money. And making more money during a recession is easier said than done. (7 High Paying Work From Home Jobs In 2020)
- Degrees; people who have a college degree . The people who make the most money during a recession are the people who have degrees. And it’s not because they want to pay more, it is simply a means of supply and demand.
The video below details the full information you will need to prepare for a recession but one of the key most important tips I can offer you, is do not give in to fear and panic. Besides driving yourself crazy it will cripple your decision making that will lead you to be a better financial lifestyle. Lastly make decisions based in facts and not speculation. Speak to a financial advisor if you need to in order to make the best money decisions for yourself.
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Until the next time,
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Hey there! I’m Melissa, co-founder of Trials n Tresses, natural hair and beauty lover, binge tv watcher and lover of life. When I am not creating content for TNT, I’m busy teaching the future of society.