Don’t worry, you can prepare for the impending recession by completing the following steps:

1) Pay off debt. If you lose your job in the coming recession, debt will be an absolute anchor. Start paying off as much debt as possible.

2) Increase your emergency fund. If you get laid off, at least you will have something to last until economic conditions improve. If you don’t have an emergency fund, start one immediately. In order to pad your emergency fund and pay off debt, you will really need to watch your spending.

3) Make a list of small businesses you could start in the event you lose your job.

4) Update your resume. Make your resume stand out from all the rest. Be as prepared as possible for a job search and make a list of companies to apply to. Start networking to find potential employers.

5) Sell collectibles while there is still a market for them.

6A) Shift out of stocks, especially technology stocks and shift into more defensive investments. Look into different asset classes. Remain diversified across asset classes. Keep investment expenses minimal.

6B) One or two years into the recession, shift back into stocks and tech stocks. Buy excellent stocks at bargain prices. If you do this step successfully, you could be wealthy by the end of the next bull market.

7) Avoid scams. Use better judgment. If a deal sounds too good to be true, it probably is.

Be patient until the economy changes. Recessions have always ended. Some recessions have been long, but they always end. Chin up!

By: David Drews

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