3 Ways to Prepare for a Recession…
We’ve heard the word buzzing around! “A recession is coming; a recession is coming “or some would say that we’re already in one. We wanted to give you some practical tips on things you can do to prepare for this recession. Having a financial plan on how to handle things (even unexpected life events) makes life a little easier. Having a financial plan helps so that you are less likely to make irrational decisions that may be based or guided by emotional responses.
Like Benjamin Franklin stated: “If you fail to plan you plan to fail”.
Below are a few ways to help you guide your emotions and manage your money!
1.Perform awareness or mind care techniques.
This can also help you make better choices with your money. Personally, I’ve dealt with anxiety, so I know that taking the time to do a few breathing exercises, take a walk, or give myself a few minutes of quiet time helps me calm down and regain focus on my spending behavior and money goals. Emotions such as fear can drive people to mismanage their money. This is commonly seen when people are navigating the stock market; when the market is down you notice more people may tend to sell their stocks (usually driven by fear).
On a day-to-day basis this could also been seen when a bad storm is being highlighted on the local news station and radio, or when the holidays are approaching. Long lines, bare shelves, huge bills, and empty wallets. Both scenarios drive emotions (fear, doubt, anxiety, etc.) and can affect the way you choose to spend money (Spending Behavior).
2.Develop a Plan for your Money or Test drive the plan that you have.
Building a solid financial plan is extremely important; of course, your plan may need to change over time. Planning lets you know where you are currently and gives you a strategy on how to reach your end goal. You can determine how much you need to save to reach your general goals if things shift (life happens). You also need to factor in… what if you get laid off of your job? How will you pay your general expenses? Focusing on preparing for emergencies, security and growth potential is something you should consider when developing a plan for your money. Remember, a real plan will help you prepare for unexpected expenses, protect what you have and highlight growth possibilities to reach your long-term goals.
3.Focus on Spending Less & Earning More.
When you’re trying to save or pay bills, figuring out ways you can spend less is the best choice to find money that’s been hiding in your wallet. We’ve had numerous clients who we’ve found money for just by going through some of their spending habits (finding hundreds of dollars).
Don’t get caught off guard; plan for the unexpected.
We’re here to help you manage your money with individualized plans tailored specifically for you.
Book a money goal coaching session with us today!
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