Is a financial crisis coming? What can I do to prepare myself?
Reddit: Is a financial crisis coming? What can I do to prepare myself?
March 8, 2017
“I’ve seen a lot of talk on the internet that we are in some kind of economic bubble and there is another recession or something on the horizon. Now I take that with a huge grain of salt coming from your average internet Joe, but I feel like I’m hearing more and more people say it. Is there any truth to this?
“I’m a young person who just started out on his own, so this has me a little worried. Is there anything I can do to prepare for it?”
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Dear Guihoobop,
There’s always a recession coming, that’s just the nature of business. Is it coming in the next few months? Who knows.
Before you structure your financial life around impending doom, it’s important to understand that recessions are constantly predicted. It’s only occasionally that these predictions come true. But, let’s address the more interesting part of your question: is there anything a young person, recently out on their own, can do to protect themselves from a recession?
My two top suggestions are:
1. Pay off as much debt as you can, as quickly as you can, and
2. Develop your work skills so that you are extremely employable.
Firstly, paying off debt makes you recession-ready by reducing your expenses. If something bad happens, and you lose your job, you’ve lowered you cost of living enough that you can make it on a lot less money, at least until the economy fixes itself.
What if the recession makes you lose your job? If you’ve made yourself extremely profitable for a business to employ, you’re likely to find a job, even in a recession. Developing those career skills takes a lot of time and effort, so it’s a great thing to start on now.
Funny thing is, I would give this same advice to anyone starting out in life, regardless of whether I thought the economy will go well or poorly. It’s a hallmark of good advice, I suppose.
Yours,
Abigail
http://www.abigailhollar.com/financial-crisis-coming-can-prepare/
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