Previous recessions have all seen pervasive layoffs, higher costs of borrowing and a tumultuous stock market.
Worry less about the macroeconomic news of the day and focus on what you’re able to control.
Take inventory of your financial life, gather facts and make moves to protect your savings.
And if you ask most people, they’ll say it’s become undoubtedly harder to make ends meet.
In some ways, there’salways a recession on the horizon: Economies are cyclical, with upswings and downturns.
The only thing that’s uncertain is the timing, location, duration, magnitude and policy response."
Attempting to figure out recession specifics is a guessing game.
Anyone who tells you different is likely trying to sell you something.
Here are eight specific steps you might take tocreate more financial stabilityand resilience in a turbulent economy.
Read more:Bear Markets: Expert Stock Market Advice for Investors
1.
Plan more, panic less
The silver lining to current recession predictions is that they’re still onlyforecasts.
How can you fortify your finances now to weather a layoff?
(Keep reading for related advice.)
Bulk up your cash reserves
A key to navigating a recession relatively unscathed is having cash in the bank.
The steep 10% unemployment rate during the Great Recession in 2009 taught us this.
On average, it took eight to nine months for those affected to land on their feet.
Lock interest rates now
As the policy makersraise interest rates to bring down inflationlevels, interest rates will increase.
This potentially spells bad news for anyone with an adjustable-rate loan.
It’s also a challenge for thosecarrying a balance on a credit card.
Leasing isn’t cheap at the moment, but it can afford you more flexibility and mobility.
This includes replacement parts, too.
If a product comes with a free warranty, be sure to sign up.
If nothing else, I’ll be heading into a possible recession a more cautious driver.
Read more:Smaller Packages, Same Prices: Shrinkflation Is Sneaky
