The current economic expansion has been running for over 10 years, but sooner or later, another recession will hit. To prepare yourself, build up your emergency fund and cash reserves. Cut personal spending (e.g., eat fewer restaurant meals) and put off any major purchases. Try to pay off, or at least pay down, any debts before the recession hits. At work, make yourself more valuable to secure your job. Outside of work, look to add another income stream. Note that while you should prepare yourself, you shouldn’t panic. Always maintain a positive mindset. And if a recession does hit, remember that it will only be temporary.
Key Takeaways:
- We are currently overdue for a downturn with regards to our economy based off of past statistics.
- To prepare for the next recession, people should start saving up an emergency fund and pay off their debts.
- Adding an additional income stream is valuable as it allows you to save more and it will keep you busy as well.
“Given that reality, the most positive and proactive approach is to be well-prepared in advance of trouble, even if you don’t know when it will come or exactly how it will play out.”
Read more: https://www.goodfinancialcents.com/how-to-prepare-for-a-recession