The idea of another recession is scary for anyone. The last recession resulted in 8.7 million jobs lost. Plus, there were lots of people that kept their jobs but had to take a cut in hours or pay. It was a hard time for America.
The good news is you can prepare yourself should this happen again at such a large scale. Let’s take a closer look at how to be prepared for the next recession.
Have an Emergency Account
First things first. You need to have your finances in order. This means that you must have an emergency account. Experts vary on whether you should have three months or even nine months covered by your fund.
It is always better to be over prepared than under. Shoot for three months as your starting goal and then try to reach nine months or even a full year. Knowing that money is there should you need it gives you peace of mind.
Create a Recession Budget
Sit down with your spouse and create a recession budget. What this means is you’re going to create a budget that cuts all unnecessary expenses. For example, your fuel bill will go down greatly if you’re unemployed and no longer commuting to work.
You can also get by with a much smaller grocery budget. You won’t need cable or satellite service. There are so many things you can cut to live on a smaller budget.
Stockpiling is a great way to save money, but it also prepares you for financial emergencies. Anytime you find a great deal on items for your pantry, stock up. Anytime there is a great deal on meat, stock up. You should also stock up on shampoo, laundry detergent, toothpaste, and anything else your family needs. This will help ensure you have less expenses during the next recession.
Pay Off Debt
No one wants to be unemployed and staring at credit card bills. Work as hard as you can to get your debt paid off. You may want to consider selling the items you no longer use on eBay or though Facebook yard sale groups. You’d be surprised at how much your old stuff is worth.
Work on Your Employability
You want to always make sure your resume is polished and ready to be submitted. You never know when the next recession will hit, leaving you unemployed. You can also spend the time furthering your education. If your employer offers to pay for part of your higher education, take them up on it. You can also take courses at your local community college to improve your skills.
The next recession could be just around the corner. You never know. What matters is that you’re prepared for it.