Tips on how to make your life recession proof

What to Do When You Have Personal Financial Worries 2020 - Negosentro
Image Source: | Tips on how to make your life recession proof | Recessions can be a scary time for just about anyone. Businesses are closing and jobs are being cut everywhere. The next thing you know, you could be out on the street with nothing but a cardboard box in hand.

Regardless of your position in life, there’s always time for you to shore up your defenses and prepare yourself for the inevitable wave of economic depression. You could be doing well today with a well-paying job and some savings to boot, but you can’t tell what’s coming down the road in 6 months or 6 years. Just like when this COVID 19 pandemic hit, suddenly many are realized their retirement savings is not recession-proof.

While this may sound alarmist, the writing may in fact be already on the wall. From a pullback in spending by the rich to an inverted yield curve on bonds, experts have claimed that there are several signs of an economic downturn on the horizon.

So, with all of that in mind, how ready are you to dealing with an economic downturn? To help you get yourself prepared, here’s our list of how you can better prepare yourself for the rainy days to come.

  1. Solidify your position

If you’re working in a job that you love, congratulations, you’re one of the lucky few. However, if you’re like the vast majority of people, just getting by, maybe it’s time to knuckle down in your current job.

Maybe you’ve been feeling a bit down and haven’t been at your best. The company and your boss let you down on a few occasions, but now isn’t the time to be rebelling.

In fact, you should now focus on building up skills whilst making yourself indispensable to the organization. Skilled and valued employees are typically the last to be let go which goes a long way towards job security.

During leaner economic times, employers are much less likely to hire new staff and tend to lean more on referrals. Hence if you were thinking of jumping ship, now may not be the best of times to make a change.

  1. Cut back on your spending

Honestly, nobody likes to cut back on their spending. Having worked all day and all night to build up your bank account, you’re entitled to a little bit of spending, aren’t you?

Wrong. Forget eating out and forget about all those unnecessary expenditures. To prepare yourself for the harsh times ahead, you’ll need to ensure that you have at least 6 months of living expenses saved up.

This ensures that you have a comfortable buffer period should you unexpectedly lose your job and lose a source of income. Having extra cash available also helps you keep your options open should things suddenly take a turn for the worst.

  1. Take on freelance work

The internet has done a wonderful job connecting all of us together. It is this connectivity that has made it possible for the gig-based economy to flourish the way it has. 

So, if you’ve got a skill of any kind, you should seriously consider taking on some freelance work. From writing to design and even accounting, freelancers have become a popular choice for organizations looking to move beyond local talent.

Besides helping you develop your skills further; freelance work is an excellent source of extra income that’ll help you shore up your finances. Even better, if you’ve got the passion your side-gig may even become a fully-fledged business in the future.

If you have sports knowledge, take some guesses into the SuperBowl wagers for example. Online betting can give you some income, but still you should wage responsibly.

While the future may be uncertain, taking steps towards making your life recession proof can save you from a lot of pain in the future. 

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