Recession or not, there’s no time like the present to take control of your money.
The recession will help send you the message, you need a plan for your money.
What Is a Recession?
Before we go ahead, let’s go back to economics class 101 together and look at what a recession actually is (a little boring, but stick with me).
A recession happens when there’s a slump in growth and economic activity for at least two quarters (about six months).
While being in the middle of a recession is never really good news, there’s still a lot of good work you can do with your own personal finances.
At the end of the day, you’re in control of what’s happening in your house, and that’s some good news right there!
When you’ve got your money in a good place, you don’t have to live at the mercy of what the economy is doing.
Should You Pay Off Debt During a Recession?
Absolutely.
Think about the peace of mind and calm you’d feel if you didn’t have debt in the middle of a recession.
How awesome would it be to get to a place where you could invest and had the ability to make some returns when the economy swings back?
That’s the thing about debt, it robs from your future and keeps you stuck in a rut paying for the past.
So, don’t waste any more time.
Should You Keep Saving During a Recession?
Yes. Having savings goals is never a bad idea, even during a recession.
In the middle of a recession, there’s nothing like taking a look at your savings account and seeing some good-looking numbers staring back at you.
If you don’t have an emergency fund in place, a recession is the perfect time to get one together.
If you’ve already wiped debt clean out of your life for good, you should be saving a fully funded emergency fund of 3–6 months’ worth of expenses.
Having an emergency fund gives you that buffer between you and all the bad stuff life throws your way.
Should You Continue Investing During a Recession?
Yes, a 1000% yes.
You might be tempted to pull your investments during a recession, but don’t do that.
It’s a downturn of the economy, and we all feel it in different ways.
But if you keep investing during a recession, you’re bound to reap the benefits when the economy bounces back.
History shows us that this happens again and again, it happened after the Great Depression and after the recession of 2008 and even after 9/11.
The economy will bounce back again.
But here’s the thing:
Any losses you might see during a recession wouldn’t even impact you unless you take the money out of your accounts.
You need to stay calm and ignore the noise.
Ride it out over time, and your future self will thank you.
A Recession Won’t Last Forever
When you hear the big, bad word recession, it might make you a little fearful that this thing is going to stick around for all eternity.
And if you watch the news too much, it will make you feel that way.
The important thing to remember is that a recession isn’t permanent.
And the economy was designed to take a dip sometime anyway.
The recovery might be slow, but all isn’t lost.
So, remember, don’t make any bad decisions just because the economy slipped into a recession.
Take this opportunity to look at how you’re handling money.
Now is the time to take matters into your own hands and do something about it.
If you want to start investing and you don’t know how, I prepare a FREE guide for you, Click Here to Download.
And if you are ready to take the first step and start investing, enroll in my course “Investing For Beginners: How To Invest With Confidence” HERE.
Take that first step and start your investment journey today!