Introduction
It’s no secret that we’re in the midst of a recession right now. There are some signs that it may be over, but you also have to remember that recessions don’t usually just happen overnight. They build up over time before they reach their peak. That means this one could still get worse before it gets better, so it’s important to prepare yourself now if you want to survive the next few years unscathed. Here are some tips for how you can fight off the next recession.
Keep a healthy cushion
The Financial Industry Regulatory Authority (FINRA) recommends that you have at least three months’ worth of expenses saved in a high-yield savings account. If you don’t have that much, start saving now. The next recession may not be far off–and if it happens while you’re still trying to get ahead financially, it could be devastating.
A healthy cushion will help ensure that when the next recession hits and unemployment rises, your family still has enough money coming in until things recover again (if they ever do). It also makes sense from an emotional standpoint: having some savings gives people peace of mind during difficult times; knowing there are funds available can help them stay positive during hard times instead of worrying about how they’ll pay their bills when their income drops off due to job loss or other factors beyond their control
Don’t take on too much debt
- Don’t buy things you can’t afford.
- Don’t take on debt to pay for things that are free, or nearly so.
- Don’t take on debt to pay for things that are available at a lower cost than buying them outright.
- And, of course: don’t take on more debt than you need in order to live comfortably in your house and enjoy life with your family!
Start downsizing Now
If you’re reading this, there’s a good chance you’ve already started downsizing. But if not, now is the time to start.
Start by getting rid of anything that isn’t absolutely necessary for your day-to-day life. That means the extra blankets in the closet and any food that has gone past its expiration date (unless it’s something special). It also means giving away some of your clothes, books and other possessions–even if they seem like they might come back into style someday!
Don’t forget about sentimental items: Consider selling or donating sentimental items rather than throwing them away because they may have value later on down the line (for example: old family photos).
Take advantage of Tech
- Take advantage of tech:
- Save money with apps and websites that help you track your spending, find coupons for the things you buy most often and more.
- Make money by selling items on eBay or Craigslist, or renting out your extra space through Airbnb or HomeAway (or even your couch!).
- Make life easier with tools that automate tedious tasks like bill paying or organizing photos in Google Photos.
Have a Gameplan
You can’t fight a recession if you don’t have a plan.
It may sound obvious, but it’s worth repeating: Make sure your plan is realistic and flexible, and make sure everyone involved knows what they’re supposed to do in case of an economic downturn. If someone in your organization isn’t sure how to react during an economic crisis, they’ll probably panic or make mistakes that could have been easily avoided if they’d had time to think things through beforehand–and those kinds of mistakes could end up costing the company dearly later on down the line.
When making plans for such an important issue as this one (your company’s survival), it’s also important not just because they help prevent mistakes from happening but also because they give employees confidence in their ability to handle whatever comes next–which itself helps ensure that everyone sticks around even when times get tough!
You can’t stop recessions, but you can prepare
There’s no way to stop a recession, but there are things you can do to prepare for one. You can’t stop recessions, but you can prepare for them.
- Keep a healthy cushion: If possible, keep an extra $1,000 in your savings account at all times. That way if something comes up unexpectedly–like an emergency room visit or car repair bill–you won’t have any trouble paying it off. It’s also smart to set up automatic payments so that money comes out of your checking account every month without fail; this way you won’t be tempted into spending it when there are bills due later in the month (which happens more often than not).
- Don’t take on too much debt: While taking out loans may seem like the best option when interest rates are low and jobs are plentiful–and therefore easy to pay back–it’s important not to get carried away with borrowing money during good economic times because it could come back around during bad ones! That said…
Conclusion
I hope these tips have been helpful to you. Remember, there’s no way to completely avoid the next recession, but if you take these steps now and plan ahead, you’ll have a much better chance of weathering it when it hits.
