Things don’t look good. Consumer confidence falls like a rock. $ 10.99 / DOZEN eggs / DOZEN in Safeway. Inflation goes up everywhere. Atlanta Feds Estimate GDP will convert negative in the first quarter. Unemployment will erupt next month due to the cleansing of government employees. Businesses holding fast in employment and extensions due to great uncertainty. The stock market is located in the free fall and the portfolio of everyone retiring is decreasing. The taxpayer has his life during commercial wars, strategies for being deported, exile, and strikes lost. Common people are afraid and look down on hats. Yes, all pieces are here the economic downturn.
The economic downturn is not a sure thing yet, but the most common people should prepare one. If you are waiting for the recession, it will be too late. Here are 5 things to do before the economic hit.
1. Understand your cash flow
Missing is a king when traveling is difficult. You need to get closer to your fixed costs, vision spending, and various resources of income. That way, you will know how to reduce your costs and get the next movement. Here is a detail mail in the understanding of your cash flow. You need to know where your money goes monthly.
2. Prepare a reduction in income
The biggest problem in recession is the loss of income. If your money is always strong, the economic downturn is not a prince. You always work and continue paying bills. It is a good time to invest because you can accumulate many shares with the same amount of money.
Unfortunately, businesses will ask you at the time of economic decay. Many workers will lose jobs or work small hours. There is a highest chance that your money will come down with. That is why you need to understand your cash flow to change as needed.
Can you continue to live in the same way if your money is low? In many games, the answer is no. Most of these families are always paid to pay and get very little money. Whether you have an emergency bag, how long will it last when you do not have a job? You will be able to plan a better if you understand your cash flow.
However, everyone should prepare for the reduction of income. No work is safe these days. Even government employees are set. Anyone is replaced.
3. Beef up your emergency bag
Do you have an emergency fund? Will it last long enough while you get a new job? You need to lower your emergency bag when the economic downturn comes.
According to me, I didn’t be very good for the emergency bag. Over the years, I often keep about 2 months of cash in cash. I invest in almost all our money because I want to use it. Our income streams have been firm, but that changes. Mrs RB440 will retire soon and the money he receives will disappear. Fire income is also not stable. We will need to start drawing our investment soon than I thought. This is fine, but we need to be a decline in our liquef. We need a lot of money when the economy is unstable.
The stock market is in the field. It is still ready to (10% decrease). The economic downdown can cause stock market downward. It may be a bad time for sale. This is why I have increased savings in the past few months. Now, we have one year of the annual cost of money and 1.5 years in I Conds. We are ready for recession.
4. Evaluate your risk tolerance and fix the allocation of your property
The stock market is made very well over 15 years ago. Many young investors have never lived by economic downturn. It seems that many people have already been shocked with 10% repairs. They ask if they have to sell everything and take money before the stock market? This is a bad idea because most people do not know how to jump back to the market. The time when the market is very difficult and most of us cannot do well.
The best plan to get your risk forbearance and set up the allocation of property you can stick. That way, you can look at the bear market. If you are young, you need to continue investing. In the 20’s, the stock market will be more than now. The crash of the stock market is just an opportunity to buy more shares.
However, your risk of risk will drop when an elder. I will be 52 soon and I cannot be stomach a depreciation of 50% at fair value. I too don’t have money to invest where the market collide. All of the largest funding now. That is why I have saved more than when he was young. At present, about 60% of our portfolio is planted in the stock market. If the stock market drags 50% tomorrow, our net number will decrease by 22 percent. I can live with that and we can let us ride for 2.5 years.
You can always be planted if the stock market drops 50% tomorrow? If not, you need to check your risk tolerance and correct your property allocation.
5. Minimize the use of stories
Once you have made these arrangements, you need to avoid stories. The turmoil is very stressful. I’ve been losing sleep because of all the penalty in the news. If you can’t do anything about it, it’s best to reduce the use of stories. When you look at the news, the despicable despair will receive your investment. You will want to sell sales!
Unfortunately, things will be worse before they get better. I will take care of the things I can’t control and I ignore others. My mental health cannot treat this level of psychological attacks.
Are you ready for recession? What will you do if your money pulls? Good luck everybody …
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The income is the key to retirement early. This year, Joe invests in real estate supplies by Crownrydteret. They have many projects throughout the USA so check it!
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