- November 23, 2020
- Posted by: Richard Okwuagwu
- Categories: Business plans, Economics, Finance & accounting, Innovation, Longrich, Network Marketing, News, Special Offers, Trends
Recession is described as a period of reduced spending, high inflation rate, increased food prices, increase in taxes, reduced investors confidence, low demand for products, etc.
To remain afloat, please consider the following tips;
1. Save and Set Aside an Emergency Fund.
When the economy starts to dip, it will affect jobs and income. Save for the rainy day, no matter how small. I recommend you save and set aside at least 6months of your monthly income.
2. Prepare a budget and spend less.
Reduce eating outside or buying what you don’t really need. The budget puts your spending in check. Do it now.
3. Cutback on your lifestyle
Cutting back and learning how to live frugally can be a great strategy, because if you can learn to make do with less, you’ll increase your savings. Frugality doesn’t mean depriving yourself of things that bring you joy. Rather, it’s about making conscious spending choices that reduces expenses, with minimal impact on your lifestyle.
4. Don’t Depend on One Source of Income
Relying solely on one source of income can be dangerous. “Don’t put all your eggs in one basket,” and this adage could be applied to your source of income.
5. Spread your Investment Profile.
Having stocks, bonds, treasury bills and other types of traditional businesses can be adversely affected during an economic downturn like a recession. A bad recession could spell financial disaster.
And it’s for this reason that diversifying your investments is key.
Some investments or businesses still have a good return on investment in a good or bad economy.
Do you know of any?
Will love to read your responses.