A recession is a period of time when the economy contracts, usually because of some external factor like a natural disaster or political turmoil. One day you're doing well, the next day everything is falling apart. While it's hard to predict when it hits us all, we can be prepared for one by simply taking a few steps here and there. In this article, I'll show you how to be ready for yourself and your family for any economic downturns that are definitely coming in the future:
Get Yourself A Remote Job
Remote work is a job that can be done from anywhere. While some people take this to mean they can work in their bathrobe and slippers, there are benefits for all kinds of workers. If you have a family or kids, remote jobs allow you to spend more time with them; if you live somewhere with harsh winters or summers (like I do), having the flexibility of working from home means not having to worry about getting snowed in or going into heat stroke during your commute. You can save both time & money. Also, remote jobs pay well if you learn a high-paying skill.
With so many people looking for jobs from their homes nowadays, there are plenty of opportunities out there.
Develop A Side Hustle
Side hustles are a great way to make extra money, but they can also be an excellent source of creativity and productivity. A side hustle allows you to explore your creativity as well as develop new skills that will help you in the future. If you're not sure where to start, try these:
Learn a new skill or language (e.g., coding)
Write content for yourself or other websites/blogs (e.g., freelance writing)
Create your own product/service and sell it online (e.g., e-book, course, software)
Give Yourself A Personal Raise
If you're like most people, your expenses are probably higher than they should be. Cutting costs is one of the best ways to prepare yourself for a recession. And don't just cut it, spend the extra cash you have on your own development and sometimes desires too without overdoing it.
Let's say you earn $60,000 per year and spend $48,000 on average each year on things like housing, food, transportation, and other essentials. That leaves you with $2,000 in wiggle room each month. So consider giving yourself a raise by spending less than what's left over after paying for necessities!
It can be easy to get caught up in spending habits if we don't realize how much money we're wasting. When I was younger I used to buy expensive clothes and food, but now that I'm older and wiser (and broke 😂), I make my own at home instead and have street food that's cheap but also a bit healthy. It saves me so much money!
Increase Your Savings Rate
You should increase your savings rate by allocating more of your income to savings. This can be done in a few ways:
Increase your contributions to an employer-sponsored retirement fund or similar plan.
Create separate savings account for emergencies or unanticipated expenses.
Don't Take Loans
One of the biggest financial mistakes you can make is to take loans. It’s not just a waste of money, but it can also lead to an endless cycle monthly bills. And if by any chance you miss the payment, you will end up screwing your credit score and paying interest.
Invest in your skillset
As you may have heard, the economy is in a rough place right now. And that means there are going to be a lot of people looking for work, which could make it difficult for you and your friends to find jobs.
However, by investing in yourself and your skillset you will be able to increase your marketability and make yourself more valuable to other companies or individuals.
This could include things like learning how to code so that you can become a web developer, or taking an online course on marketing so that you can land an entry-level job at an ad agency or start your freelancing business.
It’s also important not only to look out for opportunities but also to take responsibility: if there aren’t any jobs available right now or if the jobs available don’t pay enough, don't wait around hoping someone else will fix it for you! Take matters into your own hands by creating value for others as much as possible.
Conclusion
If you're looking for a way to make ends meet in this economy, then try out some of the tips I've listed above. You may be surprised by how much better off you'll be once you start taking care of yourself first!
