How To Prepare For Economic Recession

Recession is already here!
If the talk of recession gets you worried, it time to recession-proof your finances.
I believe we are in a massive recession right now but the media can’t call it that because by definition we aren’t there yet.

 A Recession is defined as a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters. By the time the media calls it a recession it's already too late—it will be after the fact and you have already been affected.

The oil and gas sector has been hammered hard which cause tremendous damage to the banks. Already the oil and gas industry has laid off some 120,000 workers, banks has laid off over 1,000 workers, manufacturing companies are folding up and most are downsizing. These high paying jobs effect everything and every other business.

So what do you do to prepare for the recessions? How can you survive and even prosper from a monster recession? Contractions are not something to be scared of but rather opportunities for those properly prepared for them.
Here are the things that you can do to plan for (and survive) a recession:

Save More

Do you have three to six month's wages (or more) set aside for the unexpected? If not, now is the time to get serious about saving. Challenge yourself to save whatever you can—even if it's just a quarter. In a weakened economy every bit counts.

*Learn to start emergency fund savings now


Spend Less

Delay or eliminate unnecessary purchases. Then, add the savings to your emergency fund.


Think and act like real entrepreneur

Learn 'how' think rather than 'why' think and act like an entrepreneur.
That means sales, marketing, negotiating, follow up, and branding.




Shop Smarter

A smart shopper never spends more than she has to, recession or not. Look for ways to save on all of your necessary purchases, and hang on to more of what you make.


Pay Down Your Debt

A recession isn't all bad news. Since interest rates tend to go down during recessionary periods, your debts will cost you less; and your debt repayment value will go further. What that means is: it's a great time to pay down debt. Look over your budget, and determine if you can afford to divert more money to your debt repayment efforts, if you are indebted.

You should also keep an eye on the mortgage rates. Now could be the time to refinance to a lower interest rate and a shorter mortgage term.


Stockpile

Prices can be a bit unpredictable during a recession. The solution? Establish a stockpile of sale-priced foods and goods, and you'll only have to buy when it's a good deal for you.


Make the Most of What You Have

No need to buy new when you can make do. Use up leftovers; find substitutes for items that you've run out of; discover new uses for the things that you already have; and you'll keep that shopping list shrinking month after month.


Make It Last

Squeeze more life out of everything that you own, and you won't have to squeeze as much money out of your budget for replacement items.


Do More for Yourself

A recession is a great time to learn new skills and to brush up on old ones. Adopt a "can-do" attitude, and you won't have to pay others to do things that you can do for yourself.

Make Your Own Bread
Make Your Own Ingredients
Learn how to Preserve Foods
Make Your Own Cleaners


Increase Your Income

The unemployment rate tends to go up during a recession. Protect yourself by finding ways to boost your income. Multitask ( How To Multitask), check the various ways of new income on our right side bars. A recession is a time to think creatively, to earn creatively and to live creatively.


@Dillionworld