Finance

The Impending Coronavirus Recession: Are You Prepared to Tighten the Belt?

The Impending Coronavirus Recession: Are You Prepared to Tighten the Belt?

The idea of going into a recession has already crept into the minds of people worldwide. Out of all the things hit the hardest, the economy will take the longest to recover. Are you prepared for what’s to come? Even if all of this is new to you, it’s not too late for preparations. The Coronavirus is bad news, but not for those that prepare for the worst. 

Save Money

Depending on where you are in the world, there have been several freezes placed on bills. That includes mortgage payments, car insurance, and utilities. Phone service is also included in this mashup of freezes, with some providers offering unlimited data. This isn’t free money; it is a deferment. But it does give you enough breathing room to put away some cash instead of rationing out each paycheck. Take out a percentage of everything that comes into your household. If your country offers a relief check with no attachments, try to put the majority of it in a savings account. 

Don’t Buy Into The Stock Hype

There are plenty of unreliable sources that will try to steer you into buying a specific stock. Yes, the market is crashing, but there still needs to be a method to the madness. Don’t get swept up in the hype that could very well be marketing from a company that needs you to buy. This is a good time to buy a stock if you’re smart and don’t overdo it. Having a large portfolio of volatile stock won’t get you through the recession. 

Incredible Product Prices Are Meaningless

Prices for nonessential items are incredible, with some deals slashing up to 70% off of the original price. On a normal day, this would be an incredible buy. With the upcoming recession, it is just another toy to put in a house. Try to keep a level head when running across these incredible deals for televisions, computers, and other electronic devices. If you weren’t looking for the product, to begin with, then chances are you don’t need it. Don’t let the crash caused by the coronavirus turn you into a black Friday shopper. 

Don’t Hoard

Hoarders are being hit hard, both by the law and by businesses refusing their returns. There are people that have spent their entire life savings on products that will sit in their garages for decades. Flipping for a profit is a high risk, low reward. That is money that can sit safely in a savings account and be your emergency fund when the recession hits. A garage full of cans and toilet paper won’t help you when employment is scarce, and bills need to be paid. If you want to put that extra money to work, but the majority of it in savings, and use the rest to make intelligent stock buying decisions. 

Wrap Up

No one knows when the world will go back to normal. How you deal with the present threat will be a big help in the future. Keep an eye on your situation to make the necessary adjustments for the recession. 

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