If you haven’t read any of the current articles about the economy, like this one from the Wall Street Journal, you may not know about the looming 2020 or 2019 recession.
I, on the other hand, have been researching this upcoming recession, and how to recession proof your life, for almost 4 years. That’s not a joke.
Lucky for you, I’m so obsessed with our community thriving during this time that I have lots of recession proof material ready for you to ingest and implement over the next 2 years. Let’s start with 6 tips to recession proof your life.
Recession Proof Your Life
Focus on Food
This is the perfect time to re-evaluate what you are purchasing at the grocery store, what items are actual pantry staples for your family, and what things you will be willing to let go of over the next year.
Do you meal plan yet? If not, you need to learn how to do that immediately, since meal planning is the first step to financial freedom. Now is a great time to gather up all the meatless meals your family enjoys, and start incorporating them into your meal plans. There is a misnomer out there that plant-based diets are expensive. During recessions, they are the best diets to have since produce will be one of the last things to increase in price.
Make A Yearly Budget
Budgets are created to help you tell your money where to go. During a recession, you see many people becoming overwhelmed, since their paycheck to paycheck lifestyle suddenly isn’t working. That’s because they haven’t fully embraced making a monthly budget.
During the recession, we’ll need to make a monthly budget, and also a yearly budget. We need to see where our money goes on a year-long scale, so we don’t improperly use it. Instead of counting every dollar, we’ll need to count every penny.
{Related: How To Make A Basic Budget}
Plan Your Vacation
You probably thought I wasn’t going to mention planning a vacation. Of course you should take a vacation! Now, here’s my reasoning behind you taking a vacation this year: you may not be able to do it over the next few years.
Now is going to be a great time to find deals on all-inclusive vacations, last-minute vacations, and trips to Europe and Asia (if you are based in the US). Book your vacations now, take them later in the year, and take full advantage of the deep discounts you are about to see on travel and hotel websites.
Fashion Will Matter
After studying how the fashion industry reacts to recessions, here’s my advice for you, if you love to be fashionable and stylish: stick to your staples. During every recession and great depression, simple yet stylish pieces rule.
Now is a good time to go through your closet and pick your quality pieces that work well together. Create a fashion capsule for yourself, and see how many outfits you can put together with just a handful of your best items. Start buying high quality pieces that you know will last you for at least 3 to 5 years.
Get savvy about thrift store shopping, and do a lot of it now. It will be too late to conquer this (and find good items) by next year.
Get Your Side Hustle On
A side hustle is how I have stayed out of debt, and I know it will be how you get rid of yours, and simply recession proof your life. I’ve talked about side hustles on this site before, and my passion for them hasn’t waned.
How can you create a side hustle that will make you consistent income? Keep it simple.
Dog walking, babysitting, Uber or Lyft driver, crocheting hats and selling them, starting a re-selling business — all of these are simple ways you can currently make money. Start now, or at least plan how you’re going to implement your side hustle(s) once the economic downturn starts.
Home Ownership Decisions
Are you looking to own a home, or sell a home, in the next 24 months? I need you to sit down and figure out if this will be financially feasible for you to do before the economic downturn.
Can you stay in your current place for the next 5 to 7 years? If not, you’ll have to create a home ownership plan that will get you in your new house within the next 9 months.
Are you planning to sell your house soon? Be steadfast in the amount you will accept for your home, and as soon as you get that offer, TAKE IT.
If you don’t get that offer, are you prepared to stay where you are once the economic dust settles? Make a plan for selling, and for staying, so you aren’t surprised when either result happens.
{Related: Money-saving Things Homeowners Do Once A Year}
Recession Proof Your Life Video
Here is a video I did sharing these 6 tips to recession proof your life. Feel free to share it with friends and family, and starting making these plans together.
Conclusion
The 2019 recession won’t have the advantage of catching us off guard, because we’re being proactive. From fashion, to homeownership, and even groceries, we’re making plans now to take full advantage of the economic downturns. Follow these tips I shared with you, and you mostly likely won’t feel too affected by the economic change.