Will the impending recession resulting from the COVID-19 shutdown cause you anxiety? Will it cause you to fall into depression? Will it throw you into a tailspin? Does it frighten you? And what exactly is a recession?
A recession is a decline in economic activity. Specifically, when the economy declines for 2 consecutive quarters (6 months).
Have you thought about how will this affect your family? Are you prepared to face the recession?
Many of us have received stimulus checks, rebates, deferments, extended unemployment, and other relief benefits. These programs and initiatives are designed to stimulate growth in the economy. But what about our economy? What about our family’s economy? Are these programs enough to prepare us for the recession?
Below are 5 things you can do now to prepare. Remember to control the things you can control.
1. Keep Calm. Do Not Freak Out. Create a Plan.
2. Get on a Budget. Lean into it. WRITE IT DOWN. Plan how you will spend your money ahead of time and follow your plan.
3. If your income is unstable, uncertain, or inconsistent then your focus should be on saving money! Stop extra payments on debt, stop investing
programs, cut non-essential expenses, and lean into your budget. Save those funds!
4. Take care of your household first, everything else is secondary. Food, shelter, transportation, and utilities get paid before anything else.
5. Have your bank re-issue your debit card. If you have auto-drafts to your account that are non-essential, the easiest way to stop them is to get a new
debit card. You can turn them back on after the crisis is over.
If you are able to apply these 5 things to your personal situation they will help you gain control, eliminate stress, and protect your family through the recession. Shoot, you may even make progress.