Recession Potential Rising: Protect Yourself
(FinancialHealth.net) – The National Association for Business Economics found 74% of economists think we’ll be in a recession by the end of 2021. While it may be just a prediction, you should prepare for it now.
The Great Recession obliterated millions of Americans’ life savings and retirement accounts. The US’ IRAs and 401(k)s lost nearly $2.4 trillion at the end of 2008. Foreclosures skyrocketed, and people were suddenly homeless, unemployed and deeply in debt.
Some people, however, may have been able to mitigate the damage had they known what was coming.
Prepare Your Finances
Here’s what you can do to “recession-proof” your finances:
- Figure out your debt and start paying it off. That includes paying more on the principal loan for your mortgage or car.
- Monitor your credit score and keep it high.
- Create a budget and stick to it.
- Make sure you have an emergency fund just in case you lose your income.
- Find a side hustle so you have an extra income to fall back on.
- Live within your means.
Recession proofing is a matter of saving where you can and preparing yourself for the worst. Even if economists are wrong and we avoid a recession, it’s a good idea to follow these steps for a healthy financial future.
~Here’s to Your Financial Health!
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