18 tips to overcome potential recession

by IFM CorrespondentJuly 13, 2022July 13, 20220896

The best time is to start preparing now so that people will be in a better position if a recession does hit.

International Finance Business Desk

2 Min Read

With the current ongoing economic situation, it is quite evident that every individual will be worried about the potential recession. However, the best time is to start preparing for this now, so that people will be able to handle the situation well if a recession does hit.

A business Ph.D. and fintech entrepreneur who currently runs a multimillion-dollar company states that a recession can provide people with opportunities that in turn will help them get their finances in order.

Here are 18 recession money rules which will come in handy in order to prepare oneself for a recession:

Experts often advise that one should build a 12-24 month emergency fund

One should make sure to reduce high-interest debt from the credit card which has been issued

When interest rates are high, creditors will carefully review your credit report, making it more challenging, if not more
expensive, to get authorized for loans; so come up with a strategy to raise your credit score

Make sure to keep your credit accounts active

If your mortgage is close to term, then make sure you start negotiating prior to the deadline

Stay put if you have low-interest mortgage debt

Try to purchase the items in bulk if possible, this will help in saving money later when inflation hits

Consider purchasing frozen food items, this will allow food to be kept for a longer duration and will save money in the longer
run

When purchasing, try to opt for generic brands and avoid spending money on fancy brands that sell their products at exorbitant
prices

When going out, plan it and avoid unnecessary multiple trips

Start your long-term investment after you’ve established your emergency money

Invest in sectors that can withstand a downturn

Search for inverse correlations, and diversify your portfolio by purchasing asset classes

Look for positions that are recession-proof if you are thinking about changing your profession

Develop extra revenue streams