How to prepare for stagnation: 6 money rules recommend experts

Do not get the stagnation out of the delicate air.

Last month, President Trump Anarchy tariff campaign Send financial markets to a tail, consumer confidence and supply course Large economic concerns.

Families are fighting High pricesand Confronting workers’ demobilization And watching their investments decreases, making them spend less. Companies, not sure of the place where the markets are going, reduce costs and delay employment.

He said the financial uncertainty could become a prophecy of self -realization, and he said Shang SavidraThe founder and CEO of Save My Cents, a personal financing education platform.

Although it is painful as it is, economic contractions are not abnormal. Modern capitalism has a historical boom and a bust cycle. Since the mid -twentieth century, the United States has witnessed a stagnation of almost once every 5 to 7 years, with an average length of 11 months.

The last recession began with the Covid-19s in March 2020. By April, More than 16 million jobs I lost. Federal policy makers have implemented relief and recovery measures to alleviate hardship and help stimulate economic recovery. The stagnation of the epidemic was the deepest, but also the shortest in the afternoon of World War II.

Since then, the economy has expanded significantly, as many experts have said that we are due to re -appointment. “It is never a matter ifbut when “The next recession is,” Savidra said.

Looking back at the previous recession can help us understand what we face and allow us to take proactive action regarding money decisions. This means Log in with our financial plans And knowing the changes we need To stay on the right track.

Here are some tips, experts say you can now take up for a turbulent period.

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Set a plan now

even if The economy is chaosMost of us have time to assess our financial situation and develop a plan before the economic recession becomes a reality.

“Some people are waiting for the recession to be called” before changing their financial behavior. ” Berna AnatA financial teacher and a composer of money loudly: all the financial things that no one taught us. Anat recommends an attempt to redirect the mindset instead of panic.

For example, focus on creating realistic guarantees and enhancing your financial foundation. Consider the specified steps you will take if you are corrected. Contribute to Emergency Fund And manage your Debt levels Now a temporary store can be created against possible stagnant financial shocks.

Impulsive procedures, such as selling investments in a loss, can bring you back in the long run. “Fear narrows our focus and limits our cognitive ability, so it is really important to prepare now,” he said, he said Lisa Contran-CaraoseCEO of JVS Bay, which is the process of non -profit workforce development.

You can reach your savings

in Function occurred Or a decrease in working hours, you should be able to cover your monthly bills without borrowing money or indulging in your retirement account.

Anat said: “You don’t want to find yourself relying on credit as your only tool for emergency situations.”

Experts recommend that there is an emergency box that allows you to cover living expenses from three to six months. To settle an amount that makes you feel financially safe, think about your current income and stability of jobs; Your monthly expenses (housing, medical bills, grocery, facilities); And your future plans (expanding your family, moving, and sponsoring a member of his family).

To prepare, Set your budget And avoid extension of your money a lot with unnecessary expenses. Delaying the main purchases such as holidays or buying a house, and avoiding the development of the balance on a credit card or obtaining new loans that accumulate interest.

Professional advice: The best place to keep your emergency box is in an account you can access, which makes your money safe. Savedra recommends a High -yield savings account Because it is liquid and provides solid returns on your balance. Capital market accounts and deposit certificates (CDS) also be options.

Get the search early

When mass demobilization occurs during the recession, it may take months to find a new work. Last year, before talking about the recession until he took the headlines, it took job seekers on average Eight months And 294 requests for decline.

Continent Man Kearz said part of building your financial safety network includes planning for job loss before it occurs. But preparing for a CV is only the first step. You can open actual communication to expand your professional connections doors on new opportunities.

More importantly, try 30 minutes every week to focus on Build new skills To help you distinguish for employers. Doing this preparatory work while working can help you more easily to new roles or industries.

“It does not matter where you are in your career or workforce, it is important to build skills about technology-especially artificial intelligence-critical thinking, cooperation and communication,” said Contesty Man Kearz.

Read more: How to use artificial intelligence to find your dream function

Balance your investments

Although the market slowdown is worrying, you do not always need to fix your investment strategy. The stock market has a history of recovery from declines and growth over time. Selling when things often mean A meman for the recovery.

For most people, staying in the course is better than making radical changes: stick to a mixture of investments that you feel comfortable with and continue to invest.

“If retirement is at least five years, then this is not the time to panic,” Savidra said. However, if you are approaching retirement, it may be useful to consider safer investments. Money market boxes or CDs can be good options If you need more balance and less dangerous.

Give priority to payment of debts

Getting debt becomes more cushion during the recession, especially if you have a high interest credit card balance when you enter. If the inflation remains high or increased, then those APRS will become more painful.

You You do not need to be 100 % debt -free To overcome the recession. The goal is to reduce your financial weakness, not to deplete your savings.

Before processing debt, Saavedra recommends that there is at least one month of living expenses saved in your emergency box. After that, start paying the debt at the highest interest rates (10 % and above) to pay the lowest interest over time.

If you are distorting many of the debts of high interests (medical bills, credit cards, etc.), you may also think about Debt unification loanWhich combines these debts in one personal loan with one fixed monthly batch.

Another strategy is to transfer your credit card debts to Balance transfer card With APR primer 0 %, which gives you a breathing space to avoid interest fees for 12 to 24 months. Once this preliminary period ends, the regular APR starts for the card, so you need a plan to pay the remainder.

Emotional basis mode

Preparation for stagnation involves more than just money. It comes to creating a safety network and you have a decisive lifestyle for your emotional well -being during a stressful period.

Anat said: “You want to feel emotional support, knowing that you will not only have yourself to rely on when the seasons change.”

For example, contact with friends and family close to discussing the ways you can support each other. Consider setting unofficial agreements, exchanging meal assistance, providing care, car companion, or family maintenance. Anat also recommends communicating with local joint aid boxes in your community and exploring ways to contribute to resources or receive support. You can start searching for mental health services in your area, especially those who provide sliding or care scale fees at reasonable prices.

Mobility in an uncertain financial future

Running is not new. If you think about yourself as a ship or boat, the recession is similar to the large or storm that comes and goes, according to Anat. It is often not predicted by size and scope, but all you can do is prepare for the worst.