As we all know, economic downturns are going to happen in our lifetime. There are many types of events that happen that can change your economic situations like a trade war, pandemic, a stock market crash just to name a few.
I’ve been through a couple of economic downturns in my lifetime and many of them were hard times that came to me by events that were out of my control. I have some actionable advice to take so when the next economic downturn happens you know what to do.
Figure out your monthly overhead
First, you have to make sure you’re stable and figure out your absolute necessities in life. Double-check your monthly overhead and see what you really need and cut anything for the time being. Don’t increase your purchases on things you don’t need. Keep your expenses low during this time of uncertainly. Overall, I want you to ride out this economic downturn. The economy will recover and you want to be in a great position when it does.
Keep your composure
Don’t panic when an economic downturn happens. It’s very easy to panic and give in to fear and purchase things you don’t need or buying too much of something due to the fear of scarcity. When you go to your local stores, you’re going to see people buying in big quantities. Don’t panic, our supply chain for our food and other needs are so great that the worst-case scenario is that a certain item is out of stock for about a week.
Be careful about where you get your new stories and information
Be careful where you get your news and your information. You want to make sure you get your news from reliable and credible sources. Do not give in into sound bites and headlines. When you live life only paying attention to sound bites and headlines, you never get the full story if any at all. In an economic downturn, there will be a lot of sound bites and headlines due to the situation.
Stay positive
Always be in a positive environment. In a time of uncertainty, it is very easy to be negative or worry. Don’t feud with your family and friends over a sticky situation. The economic downturn will end at a certain point but once you lose out on friends and family often times they are gone for good. So, try to comfort one and another and be there for each other for moral support.
Cut back your expenses
Find out how much money it takes for you and your family to live daily. When you find that daily number of how much it costs you to live, you’ll find ways to cut back to meet your current financial condition.
Set new goals after the economic downturn. It may be hard to plan for the future when you are worried about you today. Trust me, the economy will recover and you want to reach your goals when it’s time to bounce back. Think about what you could do today to make your future make more sense.