The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Get Help
    • Money Coach University™
    • Books
    • Financial Coaching
    • Speaking
    • The Money Coach Recommends™
  • Contact
  • Building Wealth
  • Investing
  • Credit Scores
  • Student Loans
  • Paying for College
  • Saving Money
  • Real Estate
  • Credit Card Debt
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Get Help
    • Money Coach University™
    • Books
    • Financial Coaching
    • Speaking
    • The Money Coach Recommends™
  • Contact
No Result
View All Result
The Money Coach
No Result
View All Result

Recession 2020: 5 Ways to Recession Proof Your Finances

Guest Blogger by Guest Blogger
in Personal Finance
Reading Time: 3 mins read
Prepare for recession 2020
10
SHARES
168
VIEWS
Share on FacebookShare on Twitter

If you’re like most people, just hearing the word “recession” is enough to spur feelings of anxiety, dread, and fear. For those impacted by the economic downturn of the Great Recession of 2007-2009, this word carries troubling memories and concerns about the impact of a future recession. A recession is a period of economic decline, where factors like trade, GDP, and employment fall for two consecutive quarters. Because of the structure of our economy, and its cyclical nature, recessions are inevitable. However, you can create a financial plan that allows you to feel confident about handling this event. Here are some strategies you can begin to implement today to handle a possible recession in 2020.

Start or Build an Emergency Fund

If you are starting to fear the signs of a potential recession in 2020, that is all the more reason to begin preparing today. One of the first crucial steps you can take is to build an emergency fund. This fund allows you to take care of your expenses for six to 12 months in case you lose your job or are unable to work. As we all know, layoffs typically accompany recessions, so be sure to have this fund up-and-running as soon as possible.

Get Rid of or Minimize Debt

You will feel much less stress about facing a recession if you reduce your debt obligations. During a recession, you will still be responsible for paying housing and vehicle expenses along with managing your day to day finances. These obligations quickly add up. A credit card balance with a high-interest rate can cause everything to come crumbling down. Reduce your debt associated with high-interest credit cards and minimize student loan debt if possible. 

Have a Rainy-Day Fund

In case you don’t see the trend here, savings are vital in getting through a recession. While you are building your emergency fund to weather any change in your employment, it is a good idea to set aside another fund. A rainy-day fund could be as little as $1,000 that you can grab in the event an unexpected expense emerges. For example, if your car breaks down, your rainy-day fund allows you to take care of the repair cost without using a credit card or taking out a loan.

Develop a Side Hustle

Professionals all over the world are taking advantage of the digital age to work on the side as freelancers or build side businesses. While your current full-time job may provide most of your income, don’t put all your eggs in one basket. Having a side hustle or side business allows you to lean on another income stream if your primary source of income disappears or decreases. Whether you deliver groceries, take care of children or assist businesses online, find something you can rely on so you’re able to financially take care of yourself if your main income decreases. 

Avoid Taking on New Investment Risks

 Whatever your investment strategy is, either stick with it or adjust it with the help of a trusted financial advisor. Next year is likely not the best time to take on new investment strategies or increase your portfolio’s risk. There could be advantages to sticking with your current plan, or you may want to become a bit more conservative. Whatever it is, don’t change up the script too much.

You Can Thrive During Recession 2020

A recession brings volatility to economic markets. Since you know the potential trouble it can cause, start preparing for the impact of a potential recession in 2020 today. You don’t have to be afraid for the future, and taking steps to get ready can save you in the short and long-run.

If you have specific questions about the financial plan you should develop in preparation for recession 2020, I can help.  Schedule a 1-on-1 coaching session with me so I can support you in preparing your finances to thrive no matter what the future holds. 

Tags: debt managementsaving
Previous Post

Five Lessons to Learn from The Millionaire Next Door

Next Post

Five Military Finance Mistakes to Avoid

Related Articles

A Student’s Guide To Filing Taxes
Personal Finance

Breaking Down the ‘Penalties’ of Single Tax Filings

by Lynnette Khalfani-Cox, The Money Coach
tax refund
Personal Finance

Making the Most of Your Tax Refund

by Lynnette Khalfani-Cox, The Money Coach
Here’s How to Handle Stock Market Volatility
Personal Finance

How to Manage Your Finances with Inflation on the Rise

by Lynnette Khalfani-Cox, The Money Coach
AskTheMoneyCoach
Personal Finance

The Split-Second Shopping Decision That Could Save You Hundreds of Dollars

by Lynnette Khalfani-Cox, The Money Coach
Financial Advice on TikTok
Personal Finance

NEWS DIGEST: Breaking Down TikTok Finance Myths on Good Day New York

by Lynnette Khalfani-Cox, The Money Coach
Financial New Year's Resolutions
Personal Finance

Why Your New Year’s Resolution Should Start on Thanksgiving Day

by Lynnette Khalfani-Cox, The Money Coach
Lynnette Khalfani-Cox
Personal Finance

The Long View: Lynnette Khalfani-Cox: ‘There’s a Huge Wealth Gap in America’ Podcast

by Lynnette Khalfani-Cox, The Money Coach
Lynnette Khalfani-Cox
Building Wealth

Start Building Wealth in 2021

by Lynnette Khalfani-Cox, The Money Coach
Black tax
Building Wealth

Here’s what the “Black tax” does to so many families (Vox)

by Lynnette Khalfani-Cox, The Money Coach
Next Post
tips to improve military finances

Five Military Finance Mistakes to Avoid

About

Lynnette Khalfani-Cox, The Money Coach®, is a personal finance expert, speaker, and author of 15 money-management books, including the New York Times bestseller Zero Debt: The Ultimate Guide to Financial Freedom.

Lynnette has been seen on more than 1,000 TV segments nationwide, including television appearances on Oprah, Dr. Phil, The Dr. Oz Show, The Steve Harvey Show, Good Morning America, The TODAY Show and many more.

Quick Links

  • Money Coach University
  • Lynnette's Personal Site
  • The Money Coach Corporate Site
  • Video Portfolio
  • Privacy Policy

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2022 TheMoneyCoach.net, LLC. All Rights Reserved.

No Result
View All Result
  • Meet Lynnette
  • Money Coach University™
  • Books
  • Financial Coaching
  • Speaking
  • The Money Coach Recommends™
  • Media Kit
  • Contact

©2009-2021 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist