3 Tips on Surviving a Recession

3 Tips on Surviving a Recession

(MoneyHippo.com) – “Prepare for the worst but hope for the best,” said former UK Prime Minister Benjamin Disraeli. Preparation has never been more important, as some economists warn about a recession. Planning for the worst-case scenario will help ensure you’re financially ready for every economic eventuality. Here are three tips to help you survive.

  1. Save: Creating adequate savings is the first and most obvious way to prepare for emergencies. Generally, families should aim to collect three months’ worth of expenses in case of job loss, but now, many experts suggest socking away enough to cover six to nine months.
  2. Avoid debt: The cash you have during a recession needs to go toward essentials like food and shelter, not obligations and interest repayment. Work to pay down any burdens you carry and live below your means, so you avoid accumulating debt.
  1. Start a side hustle: Starting a second stream of income now will mitigate the damage if you lose your primary job. Setting a side hustle or two in motion before the economy hits a recession could give them time to grow enough to support you if the need arises. 

Remember, economies have their highs and lows, and should a recession come, it won’t last forever. Preparation is key to riding out the wave until prosperity returns once again.

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