IT recession: 5 ways to safeguard yourself
Every nation’s economy goes through a rollercoaster ride. Sometimes, some people take a deep hit during IT recessions while the others aren’t affected to an extreme level as they are prepared for situations like this.
Here is a list of 5 things you should do to safeguard yourself from IT recessions.
- Keep an emergency fund/ rainy day fund. This is especially helpful because you have some money set aside for rough days. I encourage all of you to put aside at least 40% of your income every month for a rainy day. Instead of spending all your income on fancy clothes or eating outside, make a few compromises.
- Make sure you have at least two sources of income as one person’s income can never be enough. Let us say you are a family of five and you are hit by recession. What will you do if you’re the sole provider? Not only will you go crazy but it will be very tough for you to make ends meet therefore either give out your property on rent or have another family work. That way you have more to save.
- Pay off your debts as soon as possible. During recessions paying off debt can be a great pocket saver.
- Cut down on unnecessary expenditure. It makes sense spending on basic necessities but spending thousands of bucks on something that isn’t a need will only burn a hole in your pocket.
- Prepare a Risk management plan if you are running a business. This will basically include things or actions to carry out in case you ever encounter such a situation. It isn’t wise to make decisions based on the heat of the moment. Every business and household must have such a plan ready.
There are other actions to follow too such as investing in gold and silver or buying EFTs or mutual funds. In my opinion, it is always better to be prepared instead of repenting it later on. Start saving and purchasing long term assets because a recession can hit your country anytime.