Author: Courtney Rosenfeld
If you’ve heard mentions of a possible recession in the news, you might have the impression that it’s an impending doomsday event. Indeed, recessions are often treated as a catastrophe, but you shouldn’t fall prey to this idea. A recession simply means that the economy is declining, and although this isn’t good, it doesn’t have to wreak havoc on your life. Consider the following reasons you can still thrive in spite of the economy.
- You Still Have Control Over Your Budget
You may not have control over the economy, but that doesn’t mean you’ve lost control over your own financial future. You can still find a way to thrive by establishing a practical budget and sticking to it. Managing a budget can be difficult in a recession, though, as prices for goods and services often fluctuate. It’s important to integrate these variables into your budget and account for the fact that some expenses may vary.
- You Can Spend Your Money Intentionally
When you do need to spend money, you should do so with a clear intention. If you’re shopping for pet food, for example, consider what your priorities are as you shop. Are you looking for the greatest quantity for the lowest price — or are you seeking a product that costs more and offers better quality? Read reviews to ensure your purchases are worthwhile.
- You Can Sell Your Home to Avoid Foreclosure
Some homeowners fear a recession because they face the possibility of an upside-down mortgage. Although this certainly isn’t a positive outcome, you do still have options for handling the situation. You can sell your home through a short sale, for example, to avoid damaging your credit. If you choose this route, you may be able to get your insurer or lender’s approval as soon as you receive an offer from a buyer.
- You Can Diversify Your Investments
According to experts, one of the main symptoms of a recession is a decline in the stock market. As the economy lulls, many companies will see decreased valuation, which can be disheartening for anybody with investments. If you are looking for a way to diversify your portfolio, though, a recession is a great time to do so. Stocks are often more affordable, allowing you to snatch them up at bargain prices.
- You Can Find Ways to Earn Extra Income
One of the greatest issues in a recession is the general stress that families face. If your finances do indeed take a hit, you can adapt by finding new sources of income. The easiest way to do this is to pick up a side gig. Earning extra income on the side can give your budget more of a buffer, which in turn, can alleviate the stress that often accompanies a recession. The additional income may even help you gain a financial advantage and come out of the recession stronger than ever.
Learn How to Thrive Despite Economic Decline
The economy affects everybody, but that doesn’t mean you have to suffer. Even when stocks are falling and prices are rising, you and your family can thrive — and if you’re faced with an unfavorable mortgage, selling your home may offer a solution. A recession is an opportunity to build resilience.
