15 Steps to PREPARE For RECESSION

Introduction

Hello readers and welcome back no matter what type of 20/20 you are planning for January, we think it is safe to say that it turns out to be radically different from what you had in mind. 

The restrictions due to coronavirus are gradually wiped out in the world and in some cases restored because the pandemic is far from over and on top of that we are now facing a recession unemployment is increasing Companies are closing their stocks are volatile and sorry to give you more bad news the recession is just beginning but let's not forget to stay positive about it because hopefully in today's blog. 

we will give you practical survival skills to get through these tough times and even thrive to come out even stronger than before in our careers in our finances and ourselves and remember that the answer is difficult.

Step1: Cut Your Spending

Spend accordingly and that means your expenses should be written on things that are not essential subscriptions that you don't use, permanently get rid of the ones that you use but don't need to have a good thought on this. 

taught you how good you can do your workouts at home and you can consider getting rid of those two-wheeled trips and vacations, you still have to treat yourself sometimes and your chances of doing them have probably been limited in recent months, but if you are suddenly able to do them with the lock, don't go crazy, check your spending and don't go overboard.

Step2: Get Budgeting

Getting a budget by making a budget and sticking to it is the cornerstone of reunifying your finances and if you don't keep track of what you are spending, you are probably throwing away a lot so save how much that you spend, set goals and do your best to stick to it usually a split of 50 30 20 is recommended, 

which means 50% on required rents or the internet mortgage phone other utilities grocery insurance medical bills you get the picture 30% once on entertainment hobby travel and vacation and 20% savings and investment for itself four times like the ones we face if possible reverse the second and third numbers and make it 20% 4 watts and increase the savings and investment figure to 30% or even If you can, you will want to put them in an emergency fund and talk.

Step3: Prepare Emergency Fund

Setting up an emergency fund having money for emergencies is basic personal finance at best, so in a recession, you should never know when a disaster is going to happen and be laid off for your job drying up in a recession the chances of that happening are increasing. 

which is why you should have enough money in the bank to last you at least 3 months if you get stuck with no income and if possible 6 is better if you have made your budget, you will know how everything you need for basic survival needs. 

calculate what you need during these 3 months and keep saving until you have that and like we said it if you can continue until you are covered for 6 months, again you have between 3 With 6 months of emergency funds you can start investing the rest in investments that will help you to pros manage beyond the recession and we'll come back to that soon.

Step4: Pay off Your Debts

Pay off your debt if you have debt and can get rid of it now, it should be a priority a few months later.

you could find yourself under pressure for money and making the minimum payments could become tricky and falling behind with it could mean snowballing problems like rising debts and bad credit, so get rid of your debts now and thank yourself later if you have a certain number of deaths. 

list them according to their interest If you have a credit card, chances are it is your first priority to get rid of them because their interest rates are exorbitant and needless to say once you get rid of your debt, unless it is necessary, no longer assume.

Step5: Look Into Debt Relief

If you can't pay off your debt, look at debt relief, some lenders offer options such as debt deferral or forbearance, call your bank or lender and find out what options are available, but consider this as a short term strategy.

as this is what it is possible that lenders will be nice to you for a while, but before long they will also want to get their money back. better follow, but if that's not possible, at least consider your options.

Step6: Set up High Intrest Account

create a high-interest account, this is where you will put your emergency fund, it will not be the biggest money earner on the list. 

but if things get difficult, each account Regular bank accounts have an interest rate close to zero so shop around for a high-interest savings account. 

the interest will not be incredible, but at least there will be and maybe, more importantly, having your emergency obligations in a separate bank account will help you resist the temptation.

Step7: Prove How Important You are Workplace

Prove how precious you are in your workplace, we admit that assumes that you still have a job at the moment if you don't have a lot of advice to come. 

but even if your workspace is always safe in a recession that could change when you least expect it to demonstrate how you take on plans, learn new things and apply them, go the extra mile when jobs are cut. 

you will be better placed to keep yours and even if you are unlucky you will at least be able to put all the things you have done and all the skills you have learned in your CV and be better able to find a new job.

Step8: Start Side Hustle

Start lateral agitation during a recession, the advantages of this operation are double first, it will give you a little extra income in addition to your nine to five and secondly if your nine to five are affected. 

it will give it a fold and the good news is that it has never been easier to set up a side scramble ideally you want to find something that you have a passion or talent for something that you did as a hobby time might work, but now you're gonna make money as a freelancer maybe you've had this in mind for years, but I've never taken this step now. 

If you have specialized skills in one area, you can start making money immediately by giving tutoring lessons and yes in most cases you can do it by teleconference as a longer-term project. 

you can create a blog or YouTube channel that you may be able to monetize later if you are not sure what you can go to sites like Fiverr and up and find out what type of freelance jobs are in you can even try sites like Etsy where you can sell crafts or the spring where you can design and sell t-shirts, just start looking and you will be amazed at the possibilities you might find.

Step9: Get New Skillsets

Getting new skills we talked about to make you gain value at work and gaining new skills and qualifications related to work is a great way to do it. 

like improving your Excel skills, your video editing skills or photo programming or whatever is relevant. in your field of work and we also talked about setting up a parallel agitation, of course, freelancers worth more developed skills and qualifications earn more than those with basic skills and with micro-titles becoming an even bigger thing often with very reasonable prices. 

it has never been easier to upgrade your skills, it will also help you in the long run, because you will keep these skills all your life.

Step10: Get Networking

Get networking like the last two points, it's a productive way to use your time if you've been laid off or if your work hours have been reduced and even if you have it. 

it's still a good thing to think about moving to another line of work talking to people in this field on how to think about working for another organization talking to people who are already working there or if you are organizing a hubbub talking to freelancers who l 've done it themselves and see if you can learn from them by presenting yourself as someone who is enthusiastic and willing to learn that way when he hears of an opportunity, he will be more likely to contact you.

Step11: Keep Updated Your CV

keep your CV up to date if you follow the advice in this list, you will learn new skills and face new challenges make sure to save them all on your CV and keep it up to date in these fast times when you are constantly on the lookout for new opportunities. 

opportunities can arise at any time to respond by quickly sending your CV up to date and keeping your LinkedIn profile ready.

Step12: Consider Changing Your Living Situation

Consider changing your life situation if you are in a difficult situation regarding money, there are a number of options that you can consider here if you rent, of course. 

you could think of moving into a cheaper place and if you own the place where you live or if your contract as a tenant allows him to consider finding a roommate for the owners in a way that you can get an influx of money by remortgaging your home or by getting a home equity loan. 

but only if necessary and be sure to speak to an expert with good references, because in the worst-case scenario, it could mean losing your home.

Step13: Keep Investing

keep investing if you invest regularly in long term investments, you might hesitate right now, it is natural to think that in a recession, investing is the last thing you should do, thinking that the stock market is not going to continue if it falls. 

shouldn't I stop investing until stocks hit their lowest levels then buy well, expert advice is simple, keep investing as d habit, remember that history shows us that so far each recession has been followed by a long-term recovery. 

the stock market is recovering two of the highest levels ever and this rewards those who have continued to invest, let's take a look at the last Great Depression of 2008, investors who started investing $ 50 a month in the S&P 500 fund two years before record-high stocks made gains 12,000 overall $ by March 2018 and what about trying to pick the right time to sell when the markets are about to fall and buy just before it goes up is incredibly difficult to do even for prof professional investors and if you try. 

there is a good chance that you will seriously fail, so the safest strategy is to keep investing.

Step14: Diversify Your Investment

Diversify your investments, unless you are an expert investor, you will not want to bet huge sums of money on a stock. 

the saying not to put all your eggs in one basket is particularly true in what relates to the stock market for people who do not have professional investment skills placing most of your investments in equity portfolios like tracker index funds rather than individual stocks. 

this is true all the time, but more so in recessions when the stock market is particularly volatile.

Step15: Invest with Long Term Approach

Take a long term approach to investing as an investor looking to increase your wealth in the long term, you should be playing the game for the long term, maybe one of your stocks lost twenty percent in a week. 

maybe the whole stock market took a dip and badly affected your index fund, but the history of the stock market tells us that it will recover everything, so avoid the temptation to check the performance of your action every day. 

unless you make risky short-term trades that we don't recommend unless you really know what you're doing, check it once a week and as much as possible, it will save you stress and time and you will trust the long term upward trend of the stock market.

with this a lecture here we are at the end we know everyone's situation is different people have different concerns right now and different concerns about what will affect them during the recession so we would like to ask you what. 

do you think will be the biggest challenges of the months and years to come let us know in the comments and of course as a bonus stay healthy and safe we ​​left that for the bonus because we think it should be pretty obvious. 

but from what we've seen recently on the news and what's going on around us, a lot of people still need it stressed that we all know that the biggest cause of this recession is the coronavirus and I hope we are all aware that it is still a big threat and your ability to keep your job develops secondary activity.

 

improve your skills and basically control your finances and your career is definitely affected when you are not healthy or unable to work and as we are all in the same boat, let's just remember The more people ignore the advice of health experts. 

the more people think they are immune and hang out in crowded bars because it is time to celebrate the end of the lockout, the worse it gets for all of us as long as the virus is a threat, take notice of those who know best for yourself and for the social distance of all others avoid crowded spaces and when this is impossible and you can not stay two meters from each other, wear a mask.

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Hope you enjoy our blog. 

Have a great life and big dreams