7 Tips to Financially Prepare for the Next Recession

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Two weeks ago, I gave you a brief history of

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recessions in the United States.

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Was it a bit of a buzzkill, you bet.

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But what it showed us is that the economy is cyclical.

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And recessions are a natural part of that cycle decade after

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decade and century after century.

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Welcome to episode 1 0 6 of this shit works.

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A podcast dedicated to all things, networking, business development

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and relationship building.

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I'm your host, Julie Brown.

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And today.

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I am discussing financial tips to help you prepare for the upcoming recession.

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This episode is sponsored by Nickerson.

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A full service, branding, marketing PR and communications agency

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with team members in Boston.

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Los Angeles.

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Miami and New York city.

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Visit them at Nickerson C O s.com.

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So here's where we are inflation.

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Is that a 40 year high gas prices are through the fucking roof being at $5

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a gallon, even though they're starting to come down now, it still hurts.

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It's still way too high.

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The stock market has given me belly flops.

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Cryptocurrencies are crashing.

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None of it looks good.

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Which is why most analysts believe that if we aren't already in

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a recession, we will be soon.

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The first thing I want you to remember is that recessions

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don't last forever in general.

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They last about 11 months.

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So we just need to prepare ourselves for about 11 months of shit.

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I think we can do that together since I'm not a financial expert

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and this is not a financial podcast.

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If you want that go over to so money with Farnoosh Torabi, I'm leaning on a recently

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published article in the Washington post that lays out seven tips to financially

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prepare yourself for this recession or any other upcoming recessions you might face.

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One.

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Don't be afraid of the bear market.

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Uh, bear market is defined as a 20% drop from a recent high.

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Yes.

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Recently the S and P 500 index slid into a bear market.

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The average duration of a bear market since about 1950 is roughly 418 days.

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According to Anthony a global market strategist for Ameriprise financial.

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Just shift your view a little bit and look at this as an opportunity.

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If you're a longterm investor segment, Benny said.

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Like my fiduciary friend Francesca says when they're crying, I'm buy-in.

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Look at it as a way to invest in the market when the price

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of stocks, dip, or fall.

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Two.

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Don't try to time the stock market.

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A lot of folks may want to get out of the stock market or reduce what they're

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investing until things get better.

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That is the definition of trying to time the market.

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Remember the stock market is a long-term investment strategy and

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you need to look at it as such.

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Three.

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Get rid of credit card debt.

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Now, if you can pay off all your credit cards, the interest rate on the

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credit card is only going to go up as the general interest rate increases.

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If you can't pay off your debt, see if you can qualify for a 0% interest

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card that 0% won't last forever, but it may buy you some extra

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time in order to pay off the debt.

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For.

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Stockpile savings, meaning save the extra money you have.

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This might mean putting off the cations home improvements

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or other large purchases.

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I always remember Susie Orman saying that you should have enough

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money in savings to pay for.

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For six to 12 months of expenses, just in case anything.

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That should happen.

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A recession, losing your job, whatever.

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So calculate your monthly spend, then look at your savings and see how long

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you could pay for those monthly expenses.

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Should you lose your income?

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Most financial peeps would suggest you have a year of savings that

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you can liquidate, meaning that you can have on hand to spend.

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Five.

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Establish a backup to your emergency fund, essentially.

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Where can you go for a additional funds in a pinch.

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Like having a home equity line of credit that you could tap into.

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Think about taking one out in advance so that it's there for you.

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Should you need it?

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Six Don't underestimate the power of having bonds in your retirement portfolio

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typically when stocks are down bonds balance out your stock holdings And

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previous Recessions bonds have held Up better than nearly any other market

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segment And seven Potentially get a side gig even with all the shit hitting

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the economy right now everyone is still looking for employees there are

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record number of job openings right now but as we have seen with every other

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recession unemployment We'll increase and we'll follow the recession Even

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if you don't need the money right now it may be a good time to get a second

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job or find work in the gig economy to boost your income and savings.

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So there you have it.

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Seven tips to help you financially prepare for the upcoming recession.

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Some of the tips are easier to implement than others.

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My understand that, but as someone who has been through a recession or two.

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Being prepared for an anticipating events is always better than being

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caught off guard or blindsided by them.

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We know it's coming.

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So with that knowledge, we can begin to prepare now.

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Because it's always better, late than never.

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Okay.

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Onto the drink of the week where I have found a neat little cocktail called the

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recession, depression, which just goes to show that there is a cocktail for

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absolutely every theme of this podcast.

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Here's what you're going to need.

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1.5 ounces of absolute Citron, half an ounce of triple sec, half an ounce of

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lemon juice and two dashes of lime cordial compliant, all ingredients in a shaker

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with ice and strain into a cocktail glass.

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All right.

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That's it friends as always.

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Thank you so much for being here.

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Please remember to share the podcast with your friends and if you'd be so kind as to

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leave a review, that would be amazing too.

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Until next week.