The ‘doom and gloomers’ are at it again.
They’re using the ‘R’ word. Recession. That’s the technical word for when the economy goes through a tough time.
There’s a lot going on. Housing costs are high, there are several wars in our headlights and people are carrying too much debt. Not good.
Just a few things to be concerned about.
Here’s another one. When the government raises interest rates to slow down spending, the higher rates make it harder for people and businesses to spend and invest. That adds to the ‘R’ problem.
So what’s really going to happen?
There are a bunch of things that are semi-related to each other. One negative thing affects the others until everything is in a slow downward spiral.
When the economy is uncertain, it's crucial to be prepared. This article provides practical tips on how to navigate and thrive during a recession.
Key Points to consider:
Budgeting is essential: Create a budget and stick to it. Lower your standard of living if necessary.
Cut unnecessary expenses: Cancel subscriptions and automatic payments that drain your bank account.
Prioritize debt repayment: Pay off high-interest debts and secure loans to protect your assets like your house or car.
Sell unused belongings: Let go of items you no longer need or consider selling extra vehicles for extra cash flow.
Evaluate investments strategically: Assess the stability of your investments and consider selling while prices are stable. Be ready to buy back when the market dips.
Establish an accessible emergency fund: Place funds in cashable GICs or other easily accessible investments, adding as much cash as possible.
Enhance job security through skills development: Become indispensable at work by displaying valuable skills and a strong work ethic. Seize learning opportunities offered by employers.
Diversify income sources with side jobs: Create multiple streams of income, reducing reliance on one source alone.
Embrace self-sufficiency skills: Learn basic repairs, sewing, baking, gardening—these can support yourself economically while lowering costs.
Note**: This newsletter does not provide investment advice. Please consult with a professional investment advisor before making any financial decisions.
I love all this advice. It would just land better if I'd started ahead of the game rather than behind. 2023 was a year of unemployment, hardship, and financial struggle as it is so I fear there's not much hope of getting ahead to prepare for a recession.
We decided to hold off on any major changes and paid off a couple debts last year. Just in case.