Top 6 Steps For Stashing Money in the Midst of Recession
Top 6 Steps For Stashing Money in the Midst of Recession –
As COVID-19 continues to threaten the world, the predictions of financial collapse and a global recession continue to strike fear into the hearts of citizens all across the country. The U.S. has faced several recessions in its colorful past, and though untimely and painful, the country has always bounced back.
While you can’t be guaranteed of the outcome, you can avoid panic and proactively prepare for what comes next. There is no shame in bracing for the worst, so hopefully, you can come out unscathed on the other side. Here’s how to get started preparing for a recession.
Check out what are the top 6 steps for stashing money in the midst of recession as below –
1. Stock Up Extra Emergency Funds –
The general rule of financially savvy living is to have at least three months of expenses in savings account for emergency situations. If you know a recession is coming, go ahead and supercharge your emergency savings balance. Six months would be a better investment, though, in the case of recession. You can never have too much in savings. If you haven’t opened an emergency account, look for a lender that has the best incentive or interest rate to make the most of your stockpile.
2. Take Care of Debt –
It’s estimated the average American household has around $38,000 in debt, with that number excluding mortgage loans. It is always wise to maintain a very low debt to income ratio, but this will be even more important if a recession is headed your way. Some prefer the debt snowball payoff approach, where you pay the highest interest cards down first. Whatever extra you can spare after putting money into your emergency fund, pay down as much debt as you can.
Have you ever heard the phrase, “never wasted a good crisis?” With the pandemic wreaking havoc everywhere, interest rates are lower than ever. In fact, a lot of homeowners are taking advantage by refinancing their mortgage to secure a better interest rate. You can even refinance your mortgage online, meaning you can take advantage of potentially lower interest rates without having to go out into the pandemic.
3. Review Your Investments –
If you aren’t working with a financial advisor for your 401k investments, it might be worth the expense to get a professional involved. Check into where funds are being invested and make sure it is a good balance for your age and financial position. You might need to diversify your portfolio beyond U.S. shores.
4. Tackle Company Projects –
A recession can hit employers in a way that has them making drastic moves to save money. This usually brings layoffs. Find a way to become indispensable to your company, whether it means volunteering for key projects or going the extra mile to ensure higher productivity. Make sure you find ways to make yourself indispensable. Stay in contact with the boss and show your dedication to the company. Be the first one in and the last one out.
5. Make Some Extra Money –
When you see the recession coming, you should always think of ways to bring in a little extra money. Many people sell things they don’t use or need for some extra cash, and old or used electronics are a great way to do this. With ecoATM, you have local opportunities to recycle your old smartphones and get a fair price in return.
The ecoATM professionals focus on security, so each exchange makes sure your phones have been wiped of data, so the transactions are completely safe. You can also look online for gig employment if you have skills in graphic design, tutoring, content writing, social media management, or financial advising.
6. Shop Cautiously –
You can take your mission of saving money one step further by cautiously shopping. You will need groceries and staple items, but you may want to hold off on that new purse or a new car. However, you can sometimes find the best deals in real estate during an economic downturn.
If you are worried about the coming months, start your financial planning now. By investing, saving, and working to make a little extra money, you can help recession-proof your finances.