The threat of a recession can make you feel nervous about financial stability. Saving money is a simple solution, but you have more options available. You can make financial changes to protect yourself should a recession occur. Consider these tips to help steer you in the right direction.
1. Diversify Income and Investments
A typical concern for people facing a recession is that their jobs will not survive. If you’re concerned that you may lose your primary source of income, consider diversifying. If you’re concerned about when and where to invest, speak with a professional about finding recession-proof investments. You can grow your investment portfolio by adding on new investments across varying industries.
You can also take on a side hustle to bring in more cash. Make sure to design a professional-looking resume and CV to highlight your skills, experience, education, and accomplishments. This curriculum vitae template can help you create a standout and customized CV. Simply add your own copy, images, and colors.
2. Curate a List of Self-Care Practices
An important element of preparing for any type of anxiety-inducing lifestyle change is to create a process that helps you deal with stress. Start by curating a list of things you can turn to when you feel anxious or upset. For example, you can use the early morning hours to meditate or do yoga. If you love to read, make time to relax and read a book. Think about what self-care means to you and write it down.
3. Consider Starting a Business
If your concern is that the industry you work in is not going to hold well during a recession, a preemptive move to make is to start your own recession-proof business. Some industries that will still thrive include childcare, repair services, and accounting. For example, accounting is a broad industry with opportunities across many different types of businesses, widening the scope of jobs available to you during a recession. You could even start your own accounting firm or offer your services as a freelancer.
4. Get Your Finances in Order
There is more to understanding your finances than just knowing what’s in your bank account. Start evaluating your financial standing by digitizing your records. Some documents you may need to include are bank statements, credit scores, and employment history. If you decide to start a business, remember to keep the business financials separate from personal statements.
5. Start Downsizing
If the housing market is leaning toward buyer advantage, downsizing is a great way to save money and minimize your financial responsibilities in the event of a recession. Research shows that downsizing your home makes life easier as you age and can help you make better choices about how you use the space available to you. It’s a safer choice when your financial future is precarious.
The goal when downsizing should be to choose a place to live with a lower mortgage, less upkeep, and better spacing options. If you currently own a home, work with a realtor to find out how well your home would do on the market and start planning the repairs or renovations you would make to increase the value.
These tips are not limited to recession preparation. You can implement any of these ideas into your financial plans to create a more stable income for your family, especially when creating a recession-proof business or finding a side hustle or new job. It’s never a bad time to start creating a vision for your financial future.
This is a guest article written by Ted James. Ted is a professional financial counselor and coach holding an MBA in Finance, but rest assured he does more than just help you create a budget and send you on your merry way. Ted’s specialty is helping individuals and couples of all ages and backgrounds afford the life they want to live and feel empowered when it comes to their finances.
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