A recession is coming in 2023.
New job openings are are the lowest they’ve been since April 2021.
And layoffs are the highest they’ve been since December 2020.
Here are 7 strategies you can use to prepare for the recession:
New job openings are are the lowest they’ve been since April 2021.
And layoffs are the highest they’ve been since December 2020.
Here are 7 strategies you can use to prepare for the recession:
1. Beef up your savings
If you don’t have emergency savings, build them up ASAP.
Inflation is still running rampant.
Your job is at risk.
And your investments took a hit in 2022.
If you lose your job, you’re going to need emergency cash to rely on.
If you don’t have emergency savings, build them up ASAP.
Inflation is still running rampant.
Your job is at risk.
And your investments took a hit in 2022.
If you lose your job, you’re going to need emergency cash to rely on.
Save 3-6 months of living expenses if:
- No dependents
- Relatively safe job
- Dual income household
Save 6-12 months of living expenses if:
- Dependents
- Job is at risk
- 1 income household
- No dependents
- Relatively safe job
- Dual income household
Save 6-12 months of living expenses if:
- Dependents
- Job is at risk
- 1 income household
2. Reduce debt
If you have low-balance debt, pay it off immediately.
You’ll free up your minimum monthly payment and increase your cash flow.
If you have low-balance debt, pay it off immediately.
You’ll free up your minimum monthly payment and increase your cash flow.
With extra cash flow you can:
- Invest more money
- Pay down other debts
- Beef up emergency savings
This will make it easier to weather a storm of financial uncertainty.
- Invest more money
- Pay down other debts
- Beef up emergency savings
This will make it easier to weather a storm of financial uncertainty.
3. Diversify your income
You need at least 2 from the following:
- Main income
- Side income
- Spousal income
And 1 of these:
- Stocks
- Real estate
1 source of income is no longer safe.
You need at least 3.
You need at least 2 from the following:
- Main income
- Side income
- Spousal income
And 1 of these:
- Stocks
- Real estate
1 source of income is no longer safe.
You need at least 3.
4. Cut expenses
(Even if you already spend less than you make)
Why?
Because you must know how much it costs to survive.
Go through your expenses and see what’s unnecessary.
You don’t need to spend less right now.
But you must have a plan in place for when you need to.
(Even if you already spend less than you make)
Why?
Because you must know how much it costs to survive.
Go through your expenses and see what’s unnecessary.
You don’t need to spend less right now.
But you must have a plan in place for when you need to.
5. Become irreplaceable
Become so valuable that it’s more costly for your employer to fire you.
Ensure they can’t afford to let you go.
Online education has made it possible to gain the skills needed to increase your earning potential.
Take advantage.
Become so valuable that it’s more costly for your employer to fire you.
Ensure they can’t afford to let you go.
Online education has made it possible to gain the skills needed to increase your earning potential.
Take advantage.
6. Don’t panic
The stock market is volatile during recessions.
And the worst thing you can do during volatility is sell out of fear.
The avg recession is 17 months.
Instead of trying to preserve your wealth by timing the market, use it to expand your long-term portfolio.
The stock market is volatile during recessions.
And the worst thing you can do during volatility is sell out of fear.
The avg recession is 17 months.
Instead of trying to preserve your wealth by timing the market, use it to expand your long-term portfolio.
7. Invest in relationships
85% of jobs are filled through networking.
And 70% of jobs are never even published publicly.
Your network isn’t just your net worth.
They’re also your career.
85% of jobs are filled through networking.
And 70% of jobs are never even published publicly.
Your network isn’t just your net worth.
They’re also your career.
TL;DR:
1. Beef up your savings
2. Reduce debt
3. Diversify your income
4. Cut expenses
5. Become irreplaceable
6. Don’t panic
7. Invest in relationships
1. Beef up your savings
2. Reduce debt
3. Diversify your income
4. Cut expenses
5. Become irreplaceable
6. Don’t panic
7. Invest in relationships
Thank you for reading!
If you enjoyed this thread, follow me
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for more.
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