If you were a fly on the wall in my office, you would know that over the past couple of months, there is one word that seems to be getting everyone’s attention…Recession. Let me take a minute to say–it must seem a bit unfair that as you are taming rising prices in your budget, now you have to consider what would happen if you or your spouse were unemployed because of a recession?!
But this is one of those times that we don’t fight reality. We accept that this could be a part of our reality in the near future, and determine the best steps for moving forward! And while I can’t predict the future🔮, I can help you to manage the risk that a recession could bring to your household.
So let’s jump into the exact steps that could help your family to plan ahead:
1. Think through the different recession scenarios:
Is it possible that you could lose your job? Could your spouse lose his/her job? Is there anyone you would need to care for in this situation? What expenses could you cut in this situation?
2. Determine if it is best for you to pay off debt or to save for an emergency fund:
The security of your job will likely influence this answer. If your job is extremely secure (police officer, school teacher, military, etc.) then you may feel more comfortable with paying off debt. However, could your spouse face unemployment? What feels like a better move right now for your family? What makes you feel more secure financially?
3. Start a side-hustle.
There are tons of remote, online opportunities for people who want to earn a bit of extra money. I currently have a client who earns $400-$500 per weekend driving for Uber/Lyft, even with the crazy gas prices! He is a stay-at-home dad who is able to contribute significantly to their debt pay off.
4. Review your budget for unnecessary expenses.
Many times clients will find subscriptions that they no longer use that are still wedged in their budget. Review your budget to see if there is anything that you can cut ahead of time.
5. Hire a financial coach!
Your family doesn’t need to walk through this journey alone. Even if you work with a coach for just a few months, this will help you to get on the right track. With some professional advice, you will likely feel much more secure in your decisions because you have someone helping to plan for the future.
What questions do you have about planning financially for a recession?
If you want a bit of extra help with your finances, here is how we could work together:
Budget Bootcamp is coming soon! This is a low-cost way to get your financial questions answered! Add your name to the waitlist HERE.
Financial Coaching. Work with me one-on-one to get your finances on the right track! I have a couple openings for August!
If any of these sounds like a right fit for you then schedule a free call by clicking here!
