Are you worried about how to cope with the looming recession financially? When we get to hard financial times it becomes even more important than ever to act in a financially responsible way.
Some things can be too late to start to do, while others are just right.
Here is my view on the most important actions you could take.
If you are already in the unfortunate situation of having lost your job, you have to act fast.
Start to decrease any expenses you possibly can.
You can do that by limiting your everyday expenses and postponing purchases that you don't absolutely need.
Items like new clothes or extra things for the house.
Consider if it is a possibility to move to a less expensive house.
Then make a plan for how much you can pay back to your creditors.
Contact them immediately and let them know of your situation.
Inform them that you are committed to paying them back with interest, but are going through a rough period.
I know it might be difficult, but the sooner you react the more time you have to plan how to move forward.
Now it is time to make a plan of how to move forward in terms of what your next job will be.
Do you still have opportunities to get back to the same type of job? Do you want to do something different? This is a perfect time to evaluate what you want to do with the rest of your life, even if it doesn't seem like it right now.
You suddenly have a lot of time and not so much money.
So use the time! I believe one of the most important things is to keep studying and increasing your knowledge, ability and skills.
Start studying things you are interested in, but never had the time to do.
This will make you more attractive for your next employer.
Maybe you could start with "The world is flat" by Thomas L.
Friedman and learn more about what skills are required in the global economy.
If you, on the other hand, do have a job, you don't have to react immediately.
But you will be better off if you do.
Have you made sure to pay down your credit cards and other consumer debt (all except your mortgage)? Have you saved up a cash reserve for a rainy day? If not, then start doing it right away.
In a recession, a rainy day can be tomorrow.
If you have no consumer debt and a cash reserve, you can handle it better, if you should lose your job.
Then investigate whether you can manage your expenses better, especially if you haven't done it in a while.
Maybe you have expenses that you don't really need anymore, such as subscriptions you don't read anyway.
Maybe you can get your groceries cheaper somewhere else than where you regularly shop.
I think it would also be a good idea for you to learn more.
It could be general business or philosophy.
Even things that are not directly related to your work place can make you more valuable as an employee.
The skilled employee is usually the last one to lose the job.
The last point I want to make is that you should view a recession as an opportunity.
In a recession, people are having a hard time and the normal human reaction is to be defensive and protect what they have.
People don't look for the opportunities, but they are still there.
If you have the surplus financially and emotionally, consider seizing these opportunities.