So what can you do to prepare for a recession? Step one, don’t wait until it’s too late review your personal spending and if you haven’t already download the MoneyWellth app, connect your bank accounts, and don’t worry the app shows you where you’re spending the most so you can easily identify areas to cut back.
When heading into or living through a recession more drastic cutbacks on spending can have a huge impact on how you weather the storm. Step two, build up your savings. Even having a 500 cash cushion for unexpected expenses that can go a long way. Ideally you should aim to grow your savings to one to three months of your monthly expenses.
Finally step three, whenever possible avoid taking on high interest debt. A personal loan with a smaller interest rate is a much better option than a high interest credit card. Although credit cards seem like an easy option, high interest payments are hard to get out of no matter what the future holds.
The key to financial success is being prepared when it comes to your personal finances. How you prepare and manage your finances before and during a recession is critical to being able to ride the storm and come out on the other end and either roar out of recession or fall on economic hardship.