A 10-step guide to recession-proofing your finances
Aug 23, · The conventional rule of thumb of many financial experts is to have three to six months of living expenses in your emergency fund. However, if there is an Author: Sharon Epperson. How to recession-proof your life. The economy and the markets may be in for a hard fall. Here's how you and your family can land safely. more • Answers on financial aid, CDs, more.
The only thing we can really do amid worries of an economic downturn is to prepare for it, which means recession-proofing our finances as best we can — the sooner, the better.
Recessions work the same way, except their devastation can last months and linger for years. We consulted financial experts to assemble the following step-by-step guide on how to fortify your finances against an economic downturn. In addition to revving up the free! You might have to go into debt, or lose your home. Build up that emergency fund.
Most financial experts recommend that you have three to six months of living expenses squirreled away. This can be an exceedingly dull task Dvorkin likens telling people to create a budget to telling teenagers to clean their roomsbut there are free services that can help. Lowry puts it. Lowry, who wrote about this concept extensively for Forge on Medium.
Things that would not be on this list would be gym membershipsmeals out and Netflix. After Lowry mentioned this tip to me, I wrote my own out, and though it was a little startling to calculate just how much money it takes to sustain a life with two dogs in Los Angeles, it was comforting to realize that if push came to shove, there are a lot of expenses I could shed. If you are younger and time is still on your side, consider dollar cost-averaging through the recession. You want to stay focused on your long-term goal and not on current economic conditions.
Paying down debt aggressively now, especially higher interest debt like credit cards, can really help reduce pressure in a recession situation. Erin Lowry, Broke Millennial. If you are retiring soon, you should consult your HR department about your plan.
You might also want to consider moving money into bonds, if about to retire, per the recommendation of Logan AllecCPA and founder of the personal finance site Money Done Right. Recessions do cost jobs, and in the Great Recession, numerous sectors were negatively impacted — even police departments. Prove that you are valuable in other areas besides your current career. Want more tips like these? Sign up for our newsletter and follow us on FacebookTwitter and Instagram.
IE 11 is not how to make him stay in love with me. For an optimal experience visit our site on another browser. Share this —. Follow better. Stephanie Ruhle: To weather a financial storm, focus on these 3 key areas Sept. You need an emergency fund for life's unexpected expenses Oct. The target-date fund: A better way to invest for retirement Sept. This 'Broke Millennial' has a message for young people who are confused about money Sept.
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3 replies on “9 Tips to Recession-Proof Your Life”
Recession-Proof Your Life will help you plan for those inevitable downturns, and give you the knowledge that you need to get through them. Packed with tips and real-life examples, this comprehensive 'how-to' guide offers practical measures you can take to prepare your career, finances, investments, relationships and business for a recession Author: Lynelle Johnson. Jun 29, · Recession-proof your life: Entrepreneurs offer advice on thriving during difficult times The Oracles We are in the midst of an economic downturn that is unlike anything most us have lovealldat.comted Reading Time: 5 mins. But it’s not here yet so you still have time to recession-proof your life. What Is A Recession? In layman’s terms, a recession is when the economy starts shrinking instead of growing. Depending on what economist you ask, this happens when the value of goods/services produced declines for 2 consecutive lovealldat.comted Reading Time: 5 mins.
With the bleak economic outlook predicted for the post-Covid19 world, like me, you may be wondering how to recession-proof your life. Friends, avoiding whatever makes us feel scared, worried or anxious probably will not make it go away. In my own experience, it feels so much better to confront the source of concern. I hope that these tips help you address any recession-related worries or concerns and get you started on your own journey towards resolution.
Disclaimer: Friends, this is what I am doing to figure out how to recession-proof my own life. By continuing to read this post, you agree that if you act upon this advice, you do so at your own risk.
This video was really helpful on growing a garden from kitchen scraps. You can also use your kitchen scraps to make compost to save on purchasing expensive fertilizer as seen here and here. Peas and beans are much cheaper than chicken and beef. I buy them dried. Do you have a lot of outdoor space and patience?
Do your research and speak to a qualified financial professional before you agree to any debt management or consolidation plan. Check out this general post , this Canadian post and this post from the U. Taxation regimes can feel really complicated and out of your league.
But they are not. I think that you can accomplish almost anything with a bit of grit, some common sense and an internet connection. First things first, do your research before you file your taxes. If you really feel overwhelmed, consider hiring a tax professional if you can afford it or finding out if you qualify for any free tax assistance.
For example, in the United States , certain persons qualify for free tax preparation assistance by the government. Similar government programmes exist in Canada , the United Kingdom and Australia for certain categories of persons. You may qualify for assistance in your own country. Know exactly what insurance is available to you, what coverage is given and when that coverage is triggered. For example, some private insurance policies cover your mortgage payments in certain instances; for example, if you get sick and cannot work.
If you have life insurance or annuities, refresh yourself on conditions for surrender if available , which can be another cash flow if you lose your source of income. Do some research to determine your options. Before you get your panties in a twist about that decision, in some cases the suspension or reduction of employer contributions is the only alternative to the plan going belly up. Nevertheless, if this describes your situation, you may need to consider other long-term investments that can supplement income that you were counting on during retirement.
Explore your options for creating and implementing a retirement plan. These resources here and here may be helpful. Please seek professional help if you are feeling particularly anxious, depressed or suicidal. Contact numbers, emails and other resources for help in certain countries is contained in my previous post linked here. What are you doing to recession-proof your life?
This is so timely, succinct and helpful. I have been doing this exactly. I will share with my friends. If there is anything else you want me to talk about, feel free to let me know in the comments. Close Menu Subscribe. Career Compass. Business Writing. About Me. Pin 2. Photo by Crissy Jarvis on Unsplash. Photo by Andy Grizzell on Unsplash. Photo by Amber Kipp on Unsplash. Photo by Alexander Mils on Unsplash.
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