With the economy still in a tailspin post covid, there is a big risk of joblessness and the economy dipping further down. That’s why it’s high time for you to start thinking about how to recession-proof your own life. Recession is an economic term that means when a country’s economy is not doing well, there are fewer jobs available, businesses are closing down and customers are buying less stuff. So what’s the smart thing to do here? Well being self-reliant is the best way to go about it. So here are some tricks and trips to make your life recession-proof.
- Emergency Fund
It’s important to have a savings account that is separate from your checking account. Ideally, this would be in the form of a high-interest savings account with a financial institution that does not charge monthly maintenance fees or require minimum balances. A rainy day fund is essential for any household, but it is especially important in a recession. When a job loss or unexpected medical expense comes up, having an emergency fund that you can dip into quickly can mean the difference between financial stress and peace of mind.
- Live Within Your Means
If you want to survive the recession and avoid financial setbacks, you need to live within your means. This means saving money whenever possible and reducing unnecessary spending. You can use salary calculator India to know your in-hand pay and then make spending plans accordingly making sure you don’t spend more than necessary.
It also means being realistic about what you can afford and setting realistic goals for yourself. Hence, when the economy slows down, it’s easy to spend more money than you have in your bank account. It’s also easy to get caught up on credit cards and other debts that pile up during hard economic times — which means you may be better off paying them down before you have to deal with them later on.
- Build additional sources of income
A very smart thing to do is to build additional income — even if it’s not much. You could start by taking on extra work or freelancing on the side, but there are other options as well. If you have some extra time on your hands, why not start a blog? You can sell advertising space or even sell subscriptions or courses where people can learn from you. You don’t need a big audience or anything fancy like that; just write about whatever interests you and give people value in exchange for their money (or tips).
- Budget Your Money
Budgeting your money effectively will help you avoid overspending during tough economic times. A good budget will allow you to take care of basic necessities while saving money for things such as vacations or emergencies that come up unexpectedly.
- Invest for the Long Term
While it’s tempting to buy now, investing for the long term can help you weather a recession better. According to experts, investing for the long term will help you build wealth and prepare for retirement. To know the future value of your investments you should use a reliable financial calculator India . See more