5 Tips to Recession Proof Your Finances
Tip 1: Start thinking about it now
The most common mistake people make isn’t necessarily being financially ready for a recession, it’s being mentally prepared for one. People tend to overestimate the upside, and underestimate the downside risk of their investments. This may be compounded by the comfort we all feel after a 10 year upward trending stock market. When we’re comfortable, it makes us susceptible to panic.
Is This the Next Recession?
There has been a lot of talk and media coverage around the question of, “is this the next recession?”
There’s a lot of implication that it’s this big, looming thing that’s about to happen — and we’re all totally screwed when it does.
But this is an emotionally-charged takeaway, to say the least. Is it true? To figure out what to make of recent headlines and recession fears, we take a step back in this episode to focus on a few key facts:
5 Simple Ways To Prepare Your Personal Finances For A Recession
Last fall, recession fears were running high. It was hard to escape the conversation; predictions for the next big crash flew all over the media while clients, friends, acquaintances, and others constantly asked the team at my financial planing firm if a recession was really about to happen.
Our answer to that question never changed, and probably won’t: We don’t know.
For more on how to financially prepare for a recession, be sure to check out these articles:
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