Preparing for a Recession
If you pay attention to the news, you may see that a recession is predicted to start later this year. In nursing, we do not have the threat of layoffs because nurses will always be needed. However, that is no reason not to prepare for the impending recession. If you take a few measured steps, your wallet may be hit less hard, and you may even manage to come out on top.
Review your budget.
With the cost of groceries and gas increasing, is there something you currently budget for that you do not need or use but have yet to take off? If you can change the numbers within your categories without actually
Beef up that Emergency Fund! How much is too much for your emergency fund? The limit does not exist. You want to have extra in there to ensure that you do not need to take out any loans while we are in the recession. While interest rates tend to fall during recessions, it is best to avoid taking out any loans and avoid rash decisions since we never know how long a recession can last.
Stay the course with your investments. During recessions, stock prices "plummet," and people tend to freak out. However, if you look at the bigger picture of the stock market, it has maintained an overall growth pattern. Some people freak out and pull their money. It is widely suggested that you continue to invest even during the recession.
Keep your resume polished in case you need to switch jobs or find additional employment.
If you look at the recession objectively with a plan in mind, you stand a better change of getting out unscathed.
What else are you doing to prepare for the recession?