Recession’s come and go and it is not a matter of if there will be another recession it is a matter of when.
Here is a handy guide by Valencia Higuera which would help you combat the recession:
A recession is like a rainstorm: You can take steps to limit its impact once the rain starts pouring down, but the best way to withstand a storm is to fix your roof before the storm starts.
Track your expenditure
Just because things are going well and there always seems to be money left over at the end of the month no matter how much you spend. Then you need to start tracking your spending.
If you start tracking your spending today, you’ll at least know where your money is going. If you don’t like tracking your own spending, it’s getting even easier to let an app track your budget for you.
Minimise your debt whenever possible
Having a great job that pays you a nice salary and bonus, it might seem affordable to take three vacations a year. However, it is far more advisable to try and cut back on your spending, for example, reduce that number to two vacations this will mean you don’t have to cut back as much when a recession hits.
Maximise your value to your employer
During the Great Recession, unemployment peaked at 10 percent in October 2009, according to the Bureau of Labor Statistics. As high as that sounds, that means the nine in 10 people still were employed.
To increase your chances of surviving the recession without losing your job, try and find ways to increase your value to your employer. Take the initiative improve your communication skills, take on new tasks to increase your versatility as an employee. That way, if your employer has to make cuts during a recession he wouldn’t consider you.
Build an emergency fund
You should have savings you are building before the recession in order to access to cash in the event you need help making ends meet.
This emergency fund is money you put set aside for miscellaneous. Whether you take a salary cut or you have to transition between jobs.
“A cash reserve should be six to nine months of living expenses,” said Megan Gorman, founder and managing partner of Chequers Financial Management in San Francisco. “So, it isn’t a small sum. But in the event there is a recession, it can give both peace of mind — and opportunity.”
Prepare With an Emergency Budget
Consider a Career Change
No one can ever tell who will suffer a recession, some companies and industries are more prone to layoffs than others.
“Though we know that recessions are coming, there is no crystal ball,” said Stern. “Many companies resort to layoffs during recessions to attempt to keep business afloat. There are areas of the economy that continue to do well during a recession: healthcare, education and government.
Rebalance Your Portfolio to Reflect Your Risk Tolerance
Exercise Caution Before Borrowing
Don’t Give Up on Your Investment Strategy
Jump From Renting to Buying
Start a Side Hustle
Cut Your Unnecessary Expenses