Can A Person Make Themselves Recession-proof?
With a tariff war developing, prices in the United States will probably rise soon. Because the United States has become so dependent on China for cheap products, tariffs against China will affect many consumer goods. This includes many toys, household products, and even some foods. Rising prices can quickly outpace earnings and force Americans to tighten their belts. How can the savvy consumer prepare for a possible recession?
What Not To Do
It is a good idea to stock up on necessary goods now so that the immediate impact of a recession on a family is reduced. It is not a good idea to go into debt buying up those items. This places a burden on a family’s budget right when they need to free up as much income as they can.
Maintaining a calm outlook during a recession improves the individual’s life during the uncertainty of financial downturns. Recessions can cause serious mental and physical health issues which may require medical attention. Stay healthy in mind and body, and fewer emergencies will surprise an individual.
Act now to improve three significant areas in life:
- Reduce debt
- Invest in your health
- Build interpersonal connections
The wise individual will pay down their higher-interest debt first. They can invest in their health by eating healthier, exercising, and getting enough sleep. This reduces medical costs. It also improves the physical and mental resources a person has available for dealing with a stressful situation.
The individual can build faith-based relationships, network within their business, and connect with fellow hobby enthusiasts. This support can make a significant difference in how a person reacts to a recession.
Refocus And Reprioritize
Every budget can use some streamlining. Prioritize expenses and financial goals. Work together. A daily goal might be to eat breakfast at home rather than paying for an unhealthy meal at the drive-thru. An annual goal might be to purchase birthday or holiday gifts before prices rise. Focusing on personal experience rather than possessing material goods can also help. Spend less and save more. Periodically, increase efforts in both of those areas.