(PowerInEmail.com) – The National Bureau of Economic Research reported February 2020 as the end of the longest economic expansion in U.S. history. What came next turned out to be the highest rate of unemployment since the Great Depression.
The reason for this is probably obvious — the shutdown of businesses across the country in March put most of the economy on pause. While unemployment stood at a mere 3.6 percent back in May of 2019, this year saw a major uptick, leaving 14.1 percent of the workforce without employment as of June 2020. It’s been an emotional and financial struggle for many.
A recession can affect society in a number of ways, forcing businesses to close and impacting the stock market. But most importantly, economic recessions affect people. What does the average person have to worry about during the worst of an economic down-turn?
When jobs and businesses plummet, you can expect there to be some lasting effects. But many individuals and families are too worried about how they’ll pay the bills to concern themselves with the big picture. A recession can lead to job loss, lower wages and investment failures. This can disrupt the routine flow and force people to rethink all their money-making and saving strategies.
While you’re struggling to find and maintain a job, you might have a harder time than usual making ends meet. The lack of financial security can take both a mental and physical toll over time. And while this isn’t your fault, it can also lead to feelings of guilt and inadequacy that make the situation even more challenging.
So how do you cope? How do you prepare yourself for a recession and stay sane until the economy starts to turn around? There are a few ways you can lessen the blow and compensate for additional financial troubles.
Prioritize Your Expenses
If you’re used to having room in the budget for extra activities at the end of the month, this may be a good time to put them on hold. There are even some bills that may be able to wait if they’re unessential. For instance, you probably want to prioritize expenses like rent or mortgage, so you don’t get evicted or repossessed. It’s also a good idea to work on taking care of loan or credit card debts as soon as possible.
Save When You Can
Now may be the time to start setting up a financial safety net if you haven’t already. Putting away extra funds every month is a smart strategy if you’re able to save. Should you lose your job for any reason, having at least a few months’ worth of savings in the bank will help ensure you have enough money to survive while searching for new employment.
Take Whatever You Can Get
Ideally, you would have a job that pays well and leaves you fulfilled at the end of the day. But during a recession, you may have to take what you can get. Even if it’s only something temporary to help you pay the bills, it’s better than having nothing. The good news about the economy is that it’s constantly shifting, so you’ll likely have more opportunities in the future.
The months ahead may continue to prove challenging as the economy rebounds in the wake of COVID-19. But while there will probably be more bumps in the road, you can ride the wave and come out on the other side. You’ve got this, so just keep going.
~Here’s to Your Success!
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