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Recession Proof Your Life
quote
Check your cash reserves — do you have enough to weather a downturn?
“The things on the to-don’t list would be don’t panic, don’t make hasty financial and investment decisions.”
What you should do is make sure that you have the risk tolerance and time horizon to tough out the volatility, he said.
“Are there ways you can cut back just in case you need to?” she said. “Are there things that have gotten out of control because you have been doing well financially?
“Now is a really good time to check all of that and make sure you are in the right place.”
end quote
Know the difference between "Needs" and "Wants"....
Learn to understand your "employment sector" and what and how other business impact it.
If you work for a Public Traded Company...
quote
Check your cash reserves — do you have enough to weather a downturn?
- “You want to make sure you have the cash you need so you don’t have to sell things at the worst possible time,” like after your stocks, mutual funds or 401(k) have already lost a lot of value, said Lassus.
- Therefore, try to increase the amount of money you are saving each month, if you can.
- While the rule of thumb is to have three to six months of cash savings set aside perhaps bump that up to six to 12 months if you can, Boneparth suggested.
Focus, don’t panic
“Now is a good time for investors to not only look at their to-do list but to make sure that they have a to-don’t list,” said Goldberg.“The things on the to-don’t list would be don’t panic, don’t make hasty financial and investment decisions.”
What you should do is make sure that you have the risk tolerance and time horizon to tough out the volatility, he said.
Take stock of your personal life
It’s also a smart idea to take the temperature of your personal lifeDon’t run up your credit cards
Think about your spending versus your earnings, Lassus said.“Are there ways you can cut back just in case you need to?” she said. “Are there things that have gotten out of control because you have been doing well financially?
“Now is a really good time to check all of that and make sure you are in the right place.”
end quote
Know the difference between "Needs" and "Wants"....
Learn to understand your "employment sector" and what and how other business impact it.
If you work for a Public Traded Company...
- Learn what is their Debt to Equity Ratio?
- How does their product line or service fit within public consumer necessity?
- Are they currently under-staffed or over staffed. (You should be able to surmise a perspective by how they are performing)
- Do you work for a company with management that pays attention to how to adapt to change and be proactive to timely modify to improve moral and performance.
- If you work in an business that is underpaying it's workers, and over expanding its business by acquiring debt. You might want to be cautious about creating personal debt.
- If you are retired- on fixed income; Know what your financial priorities are. And begain to research "senior discounts" in all categories where you have needs. Shop and stock up on things that can carry you over between income checks.
- If you have young kids, teach them how to understand the difference between needs and wants?
- Work on Not Measuring Your Life by Material Things, Fads and Costly Entertainment. Develop Hobbies, and Find Low Cost Things that give you a comfort in your concept of "quality of life".
- Talk to other people who may currently be living to a lesser standard than you are, and learn how they manage, it could help you in the overall, to make adjustments without loosing your self esteem.
