If a recession occurs, there are a number of things that we can do to safeguard our finances. We'll share 6 expert tips to protect yourself and thrive during a recession.
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Make a budget and stick to it
This will help you to track your spending, and you can see where your money is going and where you can cut back. Make sure that you are not overspending by considering your needs vs. wants. You can consider using a budgeting app, keeping a spending journal, or simply reviewing your bank statements.
Pay down debt
This will free up more money in your budget and make you less vulnerable to financial shocks. Pay down especially the bad debts, for example, credit card debts. Do not just pay the minimum payment for credit cards, as the remaining debt will incur hefty bank interests and snowball into a huge amount before you even realize it!
Build up an emergency fund
This will give you a financial cushion in case you lose your job or experience other unexpected expenses. The recommended amount of emergency funds is at least 3 to 6 months of your usual monthly expenses.
Invest in yourself
This could mean taking courses to improve your skills and networking with people in your industry. This is very important as it may open up various options for you should you find yourself changing to a different industry or finding other opportunities within your industry.
Find ways to make extra money
If you're struggling to make ends meet, consider getting a part-time job or starting a side hustle. This extra money can pay down your debt faster and enable you to tide through the recession better.
A recession can be difficult, but staying positive and focusing on the things you can control is important. Do not be too hard on yourself; life is already pretty difficult, especially during a recession. Try to care for yourself more; for example, explore mindfulness meditation or walk in the park. With a calm mind, you can take care of your finances properly.
Going through a recession can be tough for everyone. However, with proper preparation, there are ways to survive and even thrive in a recession! If a recession is to come, may we emerge from it stronger.
Remember, nothing lasts forever, even recessions!
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