How Finance Experts Are Preparing for the Next Recession
Worried that America is headed into its next recession? Here are some expert tips to make sure you’re in the best financial position possible…just in case.
Increase your possible sources of income
In addition to building on your earning potential at your current job, are there ways you can add additional sources of income as a safety net? Kapfidze recommends looking for a side hustle, like these 10 easy ways to make money fast, to give yourself an extra cushion.
Reduce your cost of living
If money gets tight, are there items that are stretching your budget too much, like the car you bought that you can’t really afford or an expensive apartment? “Even if it’s painful, would you be in a better place by reducing your cost of living?” Bloch advises to ask yourself. Try these 10 creative ways to save money that you hadn’t thought of before.
Move to a different state
According to LendingTree, there are 10 states that are at a lower risk for recession:
State with the highest risk of recession include:
- South Carolina
You should also take into consideration the 20 states where your money goes that farthest.
“If the Gross Domestic Product (GDP) shrinks, or recedes for two consecutive quarters, we call that a recession,” says Ramsey, explaining that it’s two quarters: six months that the economy shrinks. “Nobody’s coming to your house to take your children. It’s not the end of the world.”
Anastasio agrees about a possible next recession. “A recession is nothing more than a natural part of a market cycle, so we shouldn’t panic. We just know that markets are going to go down at some point, and then they’ll go back up,” she advises. “The good news is that since we all know a recession will come one day, we can use that knowledge to our advantage and set ourselves up to weather the storm as best as possible.” If you’re not perfect with staying on budget, give yourself a break, after all, even money managers have made these 16 money mistakes.