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It’s terrifying to think about, everyone just got through the COVID pandemic (which is still technically among us), but yet, the news states that economists are predicting an economic recession in the first half of 2023. While it’s hard to say if this will actually happen or not, it never hurts to try and stay prepared. It really doesn’t take much for the economy to become a major disaster. So, with that said, here are some ways that you can prepare and keep yourself safe in the case of an economic recession.
1. Keep your spending in check
Just check to see if you’re spending money on things that aren’t even considered a necessity. This can happen. Maybe you’re spending it on coffee, subscriptions, or going out to eat too much. It’s just best during these uncertain times that you closely watch over yourself and your spending. Maybe try and switch out your spending by having cheaper alternatives or look into cutting things out altogether. It’s vital that you look into all of this.
2. Start saving more money now
If you’re not saving money now, then you’re going to need to start immediately. Who knows how long this economic recession will be if it does happen? So in cases like these, it’s best to start saving, if you haven’t already. Plus, if you don’t have an emergency fund yet, then it’s best to go ahead and set that up.
3. Pay off debt immediately
The housing market is already in a scramble, and Armand Candea has been discussing this. But, with that, it also means that interest rates are going up. This isn’t only mortgages but also includes student loan debt, credit cards, car loans, and so much more. When a recession hits, interest rates tend to skyrocket. Is this something that you can afford? Whatever debt you have, it may be best to try and pay all of that off immediately.
4. Try to not sell your assets
It’s easier said than done, but one of the things you should not do would include selling off your assets. Yes, while it’s understandable that you’re going to want to try and get money from the assets you have, stocks included, it’s best to not do this. Just keep what you have, because selling everything will contribute to the recession and the downfall of the stock market.
5. What are the odds that your job will be safe?
Sometimes, this is not something that can’t be controlled, but what are the odds that your job will be safe? Even if you’re a business owner, what are the odds that it will remain safe? For example, marketing jobs are usually let go or laid off because marketing is one of the very first things that a company will try to cut back spending on. There may be a chance that you could be put in a hard spot. Just know that there are things to remember if you get fired or laid off from your job. It’s not easy, but you should be aware of the potential. Plus it may be wise to go ahead and pick up a side gig.