Friday, November 2, 2018

Preparing for the Next Recession

A decade ago we experienced one of the worst recessions in history.  Job loss, foreclosures, bankruptcies, all of these hit record levels and impacted a lot of people.  The vast majority of these people had no plan for a financial disaster as the 80s and 90s were times of freewheeling financial success for many.

Fast forward to today where the drumbeat of recession is getting louder.  Will you be prepared if a recession hits in the next year or two?  Here's what to do:

  • Get out of debt (house, car, credit cards, loans, student debt...everything).
  • Keep your living expenses as low as possible (utilities, insurance costs, clothing, etc).
  • Have multiple streams of income.
  • Have a range of job skills.
  • Have an emergency fund, the bigger, the better.
  • Have a good sized stockpile of food and supplies (good for all kinds of emergencies from natural disasters to long-term unemployment).
  • Keep your investment portfolio well balanced.
  • Practice living as cheaply as possible (try a no-spend week or better yet, a no-spend month).
  • Learn to do more for yourself (grow a garden, make your own coffee in the morning, etc).

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