Is it coming? Will there be a drop in quality of life? I am a huge believer that the signs are here and you should pay attention.
Step 1: Prepare for the recession even if you aren’t sure it’s coming.
Start cutting back and putting more into savings. This does not mean stopping your life however be aware of the terms.. needs and wants.
In a disposable world it is easy to become indulgent into everything being a need.. just be careful not to get sucked in to what is a need and what is a want.
Step 2: Build an emergency fund – this references 8-12 months of income saved. Even if the recession does not happen, at least you will be prepared if you have a major house repair
Step 3: Pay off any high debt on credit cards. Whatever debt you have- make an outline of the most expensive and tackle that debt right away!
Step 4: Consolidate your loans.
Put the debt together and figure out a plan to pay it off. Work hard and live on less.. this may entail moving… do what you need to do.
Step 5: With interest rates high, it is not a good idea to take on additional debt – if you don’t need something, don’t buy it. With that said, if you do need a dishwasher or stove; buy sooner than later with future price increases.
Step 6: Switch up groceries.
A lot of places price match and consider buying generic over brand name. It sounds logical but there are a lot of people who must have a specific brand of this or that.. consider options and the savings!
Best of luck!