No one knows exactly when the next recession will hit, but one thing is certain: due to the cyclical nature of economics, there will be a recession at some point. However, it’s possible for individuals and businesses to survive and even thrive during such a time. The key is preparation.
Get Your Money in Order Now
Before a recession takes place, you can put yourself in a better position by paying down your debt as much as possible. It’s important to have an emergency fund: https://www.newsweek.com that you could live off for at least six months.
Pay your bills: https://www.zenbusiness.com/business-ideas-start-recessionon on time, and as much as possible, avoid opening new lines of credit. Create a household budget and stick to it. Designate funds for the essentials such as utilities, food, and mortgage payments, and take care of these things first every month. Living within your means is crucial.
While it may seem counterintuitive at first, this might also be a great time to start a business. There are a number of options: https://www.zenbusiness.com/business-ideas-start-recession for side-hustles that are not only lucrative but also happen to be fairly recession-proof. These range from online freelancing to fast food, not to mention being a housecleaner. Especially when dealing with an unstable economy, the goal is to offer a service that’s sure to exist, even if purse strings start to tighten.
Plan Your Purchases
One of the keys to managing your money is making your purchases intentional https://www.ifec.org.hk/web/en/young- adults/money-management/five-simple-tips-help-you-avoid-impulse-buying.page rather than impulse buys. Delaying the purchase of an item by a few hours or days can help you determine how badly you need it, and why you’re driven to buy it. Paying with cash, rather than a credit card can also help to slow your spending.
Particularly for big ticket items, it’s a good idea to read reviews of the products you’re considering before buying them. Professional and individual shopper ratings can help you side step shoddy merchandise. For example, in addition to offering expert pet care advice, PetsDigest.com has an abundance of pet product reviews, on everything from dog clippers to crates and pet shampoo.
Take Care of Your Home
If you’re a homeowner, make sure your home insurance is adequate and consider a home warranty which covers major appliances and systems https://www.rocketmortgage.com/learn/home-warranty-cost , like the HVAC. Refinancing your home at a lower interest rate may be a good way to reduce monthly costs. Continue to maintain your home, and delay discretionary projects, such as redecorating.
Take Care of Your Mental Well-Being
Uncertain economic times can trigger anxiety or depression https://www.sciencedaily.com/releases/2019/09/190903120522.htm in many. If you find yourself experiencing negative mental states over a sustained period of time, you’ll need to find ways to address the situation. This may be as simple as adding exercise to your days, or switching off radio or TV programs that trigger your anxiety. Taking action to prepare for a recession may relieve some of the stress. Making Plan B for what you’ll do if the worst should occur can help to put your mind more at ease.
Get Professional Help for Depression
Just as it’s natural to go to the hospital for a broken leg, there’s no shame in seeking help for mental issues. If you are experiencing depression that limits your ability to work, connect with loved ones or enjoy yourself, or if you are considering suicide, it’s time to seek professional help.
You may see a mental health professional to be evaluated to see if prescription medication, or antidepressants might be helpful. Your doctor will consider your medical history, current issues, and other medications you take before selecting a particular medication and dosage for you. It’s important to have an ongoing relationship with your healthcare provider so they can monitor the effectiveness and any side effects of the medication.
Although economic recessions will probably come and go during your lifetime, it’s possible to prepare for, survive, and even thrive during a recession. By budgeting, planning ahead, paying down your debt, and spending wisely, you can manage some of the worst effects.
Uncertain economic times can trigger anxiety and depression or make them worse. So if your life is adversely affected by your mental state, it’s worthwhile to seek professional help https://psychiatry.org/patients-families/depression. After all, you want to feel good enough to enjoy the fruits of your wise financial decisions!
About the Author:
Ted James is a husband, father, dog owner, and rock climber living in the Pacific Northwest who devotes a large chunk of his time helping people get back in the driver’s seat of their finances. He created his site, Ted Knows Money, to share money tips and help people get complete control of their finances.
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