The next recession can take place at any moment. In fact, many people would say we’re already in a recession. What do you think?
A recession is a drastic economic downturn where the unemployment rate increases and consumer spending drops significantly for at least six consecutive months.
Based on this definition, it doesn’t seem like we’re in a recession yet. However, living costs have continued to skyrocket, making it feel like a recession. But when an actual slowdown does occur, will you be ready?
Below are the top six tips to prepare for the next recession.
1) Use Fuel Catalyst for Better Fuel Efficiency
A recession means less disposable income and higher prices for necessities like gasoline.
So, you can expect gas prices to rise significantly during the recession, which we have already seen happen over the last year.
The price even reached a national average of $5 per gallon for regular unleaded.
Add a Super Concentrated Fuel Catalyst to your vehicle’s gas tank to make it easier for fuel particles to get absorbed and turned into power for your car.
Fuel catalysts can increase your vehicle’s horsepower, fuel efficiency, fuel economy, and engine performance. They can also reduce carbon emissions too.
As a result, you’ll make fewer trips to the gas station because you’ll get more miles per gallon out of your engine.
2) Set up an Emergency Fund
A recession is a life emergency, especially if you lose your job. That is why you should set up an emergency fund with enough cash to pay your basic living expenses for three to six months.
Then you won’t need to struggle and stress yourself out over trying to pay bills as you look for another job and try to get by.
3) Reduce Your Existing Debt
Reduce your debt obligations as much as possible. Start by paying down your existing debts to lower the balances owed.
If you have fewer bills to pay, the financial impact won’t be as difficult when the recession does come.
You can start by paying off your personal loans and credit cards because they carry the highest interest rates.
Then start paying off the car loans, medical bills, and whatever else you owe. Free up as much monthly income as possible to devote toward your survival during the recession.
4) Boost Your Skills
Never give up on trying to learn new skills. Acquiring extra knowledge and skills can help prepare you to look for current jobs in the 21st century.
More importantly, you’ll be more competitive in the job market during a recession because you’ll have skills many other job candidates won’t have.
You don’t need to attend college to acquire new skills. There are plenty of online training courses on websites like LinkedIn and Udemy which can teach you practically anything of interest, such as programming, business writing, photography, etc. Online courses offer the most affordable options for boosting your skills.
5) Start Networking with Professionals Online
It is never too early to start networking over the internet with other professionals in your industry.
LinkedIn is an excellent website for job-based networking because it is a social media platform designed for working professionals in all sectors.
Perhaps you could connect with a few dozen working professionals who could hire you or refer you to another employer for a job if there is a recession.
Try to build your list of professional contacts as early as possible, so you’ll know who to email when things get bad for you.
6) Build Passive Income Sources
A traditional 9-to-5 job doesn’t need to be your only source of income. Thanks to technology and the internet, you can easily generate passive income sources online. Then you can use your passive income to pay the bills while you search for a new job.
Here are some popular passive income ideas:
- Create YouTube videos and monetize them
- Start a blog with affiliate marketing
- Write and publish digital books on Amazon Kindle
- Use Airbnb to rent out a room in your house
- Create digital artwork and sell it on Etsy
There are endless possibilities for generating passive income. You need to get creative by applying your skills to online income-generating opportunities.
Conclusion
The people who suffer during an economic downturn are those who don’t plan for emergencies.
Hopefully, you won’t make that mistake now because you know how to plan your finances for emergencies like a recession.
These six tips can help you keep your head above water when the next recession hits.
