As we all know, recession fears are running high. I have heard the word “recession” mentioned considerably, whether from my friends, media, or family members. Because I wondered if we were in a recession, I researched to see what the economists out in the world thought.
From CNBC.com in bold font, it read, “The U.S. is ‘officially’ in a recession – but economists say it’s far from a typical downturn.” I will not go into why they said what they said; however, I would like to discuss a few ways to prepare your finances for a recession.
Set up a strategy by detailing your financial goals, especially your long-term ones.
You should prioritize your financial goals. Most of us have decreased our spending with the pandemic. Some may have done it out of fear, others because of the loss of a job, and others because the income dropped in the household to one instead of two. Whatever your reason is, I suggest you spend wisely. What I do not mean is that you do nothing.
Stay focused and keep steadily working toward your long-term goals.
I will invest if the opportunity allows you. Staying focused and steady ensures that you pay attention to what’s important to you and your family. I always say, “Stay on budget – it is key!”
Keep control of your cash flow.
For those who have not started this – do so! We, as humans, tend to pull toward action at the moment. It makes us react sometimes right now – without thought. This can hurt us, especially financially, when we don’t make plans or goals with our money. I have not seen one person I know who put their energy into managing their money make emotional or irrational moves. In times like these, they seem to be less scared and even in a better situation than those who do not plan, budget, or save.
We have to focus on what we can control.
I love the bible verse Philippians 4:6-7, “Do not fret or worry. Instead of worrying, pray. Let petitions and praises shape your worries into prayers, letting God know your concerns. Before you know it, a sense of God’s wholeness, everything coming together for good, will come and settle you down.”
It does not have to be a challenging or overwhelming experience. Let’s start working on our finances now (if you have not already). I know we can do this!
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