A bit of planning can prepare your family for the uncertainties of a recession
Posted on . 1 min read
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.