A bit of planning can prepare your family for the uncertainties of a recession

personal finance
emergency savings
Co-Authored and Reviewed by Gagan Sandhu, MBA - The University of Chicago Booth School of Business, CEO of Xillion
Posted on . 1 min read

Author: Gagan

Plans are worthless, but planning is everything” - President Eisenhower.

A bit of planning can prepare your family for the uncertainties of a recession. Here are some ways to weather a recession (relatively) easily:

1️⃣ Economic Cycles 📉📈: American & world economy goes through an economic recession every decade or so on average. Some preparation is necessary, but constant fear is uncalled for.

2️⃣ Job Security ☔: Knowing your (+ spouse) job security is important. For instance, the current recession seems like a high tech recession, with some slowdown in housing.

3️⃣ Belt Tightening 🥦: If you are in a vulnerable sector, reducing avoidable expenses helps establish “baseline living expenses”.

4️⃣ Emergency Fund 💵: Stash away some cash. Not too much, though. Use Xillion emergency fund guide to really nail it down (link in first comment).

5️⃣ Don’t Panic 🙅: Recessions happen every decade or so, and typically last around 18 months. Please don’t sell all your investments the moment stock market turns negative.

With a little bit of planning, you can skirt the worst of this and future recessions.

Share this:
You may also like...
Which Stocks to Invest in?
stock market
Posted on . 2 min read
Do you know why the S&P 500 is the greatest wealth-generating machine?
long term investing
Posted on . 1 min read