Four ways to recession-proof your life
1. Shore up your savings
As they say in sports, the best offence is a good defense – and when it comes to finances, your savings account is your first line of defense against unforeseen emergencies that may otherwise set you back financially. The rule of thumb is to build your reserves with anywhere from three to six months of your fixed expenses in a high-interest savings or a redeemable term deposit, so you can easily access your money if you need it.
2. Take stock of your career and earnings
If your savings account is your line of defense, think of your income as your main offence. For most people, their primary income comes from employment, and if this is the case for you, you’ll want to set yourself up to bounce back quickly from any unplanned changes to your employment situation, especially if you work in an industry sensitive to economic downturns. Make sure to keep your resume updated, take on professional development opportunities whenever possible, and maintain your personal and professional networks. You can also consider adding to your sources of income by starting a side hustle or investing in income-generating assets.
3. Protect your biggest asset – your health
During times of economic uncertainty, more people are likely to suffer from poor health so it’s important to prioritize your well-being. Prevention is better than cure, so find ways to eat healthy, get enough sleep, and make time for movement whenever possible. Mental health is equally important so find ways to build your mental resilience and coping skills in a way that works for you.
4. Review your overall financial picture
Set aside some time to look at your overall financial picture and review your income, debt, investments, and insurance. Gather all your financial information together so you can assess your holistic financial situation. Knowledge is power and having a clear picture of where you stand financially puts you in the best position to plan the best course of action in the event of a financial emergency.
Not sure where to start? We can help.
If you’re not sure where to begin, we can help. At connectFirst, we believe every member deserves a conversation and you can count on compassion, kindness and understanding no matter what your situation is.
Let's have a conversation.