6 Steps to Weathering a Recession
From: financeinsights.net
1. Don’t Make Drastic Changes To Your Investments
People tend to make bad investing decisions when they get stressed. Don’t time the market or take big risks. Make your plan with a professional’s help and then stick to it. Also keep a lookout for opportunity amid the fallout. Market volatility can create unique opportunities in even the worst recessions.
2. Expect Emotional Ups & Downs
When recessions hit, it’s normal to get worried about your money, your work, and your loved ones. But don’t let that worry take over and cause panic. People who let fear guide their financial choices often end up getting the most hurt during recessions.
3. Take Care Of Yourself & Your Loved Ones
Recessions can bring layoffs and stress to yourself and your family and friends. Tough times are when it’s important to fall back on your values, communicate, and take care of the people who matter most. Sometimes, the hardest part is explaining recessions to children who worry or helping the folks who are worse off than you.
4. Ignore The Entertainers
You know what gets ratings? Headlines that scare people. And there’s no shortage of those during recessions. Don’t listen to pundits who act like they know what’s going on but really don’t. They aren’t experts, and scary headlines will just make you stress. So, tune them out.
5. Stay Flexible
No one can tell exactly what a recession will bring until it happens. Be prepared to cut back on your expenses. And know where you can turn for financial backup just in case. If you have a recession income plan, you can potentially avoid the financial hit of liquidating assets during a downturn. (I can help you create one if you’d like to discuss).
6. Get Professional Advice
You don’t have to go it alone. The calm opinion of a pro can be the antidote to the chaos and anxiety that come with recessions. I can help you steer clear of hasty choices so you can stay focused on your long-term goals.
