A foul wind’s a’blowin’! There’s evil in the air! A recession is a’brewin’ and you need to be prepared!
-From “Pay Off Them Debts Before the Recession Comes,” by Piggy Smalls featuring The Kitty Kat Kid, new from Bitches Get Riches Records
Last week we put all your pre-recession fears to rest by explaining how you can arm yourself with strong financial decisions before the next recession comes. To recap:
- Track your spending. You’ll feel less anxious and more in-control if you have a clear picture of your needs.
- Fatten up your emergency fund. Let your level of risk set the size of your emergency fund.
- Pay off as much debt as you can. This will give you more flexibility with your money and reduce your expenses overall.
- Get a credit card or increase your existing credit limit. Credit freezes up during a recession, so get it now while you still can. Yes, credit is scawwwy and can be misused—but it is a tool that can instantly put food on your table.
- Get your health in order. Avail yourself of healthcare access while you have it, and stock up on needed prescriptions.
- Identify areas to cut back before you have to. The less money you spend every month, the less money you need to get by. The less you need to get by, the easier it’ll be to pay your bills if you lose your source of income.
- Broaden your skills. Start doing whatever you need to make your resume stand out in a more competitive job market.
- Back up your work files. You don’t want to lose potential portfolio pieces.
- Stay the course. Don’t freak out and pull your money from the stock market.
- Be kind. A time is coming when we’re going to have to depend on each other. No one wants to help out an asshole when times are tough.
So praise be, we know what to do! But what exactly is going to happen? And when?