The US Economy has been officially deemed in a recession due the pandemic-induced downturn. There are so many unknowns, not just with medical concerns with COVID-19, but also with your personal finances. How long until you find another job? Will your employer lay-off more workers? How long will this recession last? Here are some tips to recession-proof your finances to prepare for the days, weeks, and months ahead.
1. Increase your emergency savings
Job security has become very uncertain during the pandemic months. Boosting your emergency savings is more important than ever so that you can pay for your necessities in the event an emergency arises.
2. Live within your means
Make sure you have a monthly budget and you are not overspending. Groceries are a necessity but eating out is a luxury and limiting luxuries is a way to live within your means.
3. Plan for the long haul
The markets will continue to increase and decrease weekly. Do NOT adjust your long-term goals even when the near future is uncertain.
While it is hard to predict the future, especially that a pandemic was going to cause a recession, it is good to always be prepared for whatever the future might hold. For more tips or help planning how you will manage the recession, contact us Brien@traditionswealthadvisors.com or 979-694-9100.
Source: Foster, Sarah. “7 Steps to Recession-Proof Your Finances.” Bankrate, Smart Money, 8 June 2020, https://www.bankrate.com/personal-finance/smart-money/ways-to-recession-proof-your-finances/