Picking up from last week, this blog is not about predicting the economy. Even the definition of a recession is subject to debate. It’s always good to be ready for a recession, since we don’t know when the next one will hit.
For those of you still working, the biggest risk is losing your job in a down economy. Here are three tips to help you through uncertainty.
- Increase your emergency fund savings. Do you think $10,000 is enough to get you through 3 months of unemployment? Try to get the savings account up to $15,000 or more.
- This is NOT money you have invested in your Robinhood account or 401k. Emergency fund money should be in a bank savings account or money market account.
- If your emergency fund is not at least 3 months of expenses, stop making other financial moves until it is at least that much.This includes stopping 401k contributions (much as I hate to say it) or making extra mortgage/student loan payments if you are doing that.
- Make yourself indispensable at work. Take on extra duties without asking for a raise or promotion. Get that certification that shines on a resume. Make your boss look good. Whatever it takes to be the last out the door if layoffs happen.
- Layoffs happen even to the best workers. Start looking into a side hustle now. Uber/Instacart/Turo/Air BnB-ing a room a few nights per month can add up the extra income. Work on strengthening your professional network BEFORE you are looking for a job.
