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Recession Proof Your Life

wealth Jun 23, 2022
 

What are the key things you need to do to protect yourself financially in the event of a recession? 

1) Keep your emergency reserves in cash. This should be 3-6 months of expenses in a savings account or high yield savings account. If you are nearing retirement, it will need to be more. Don't be tempted to invest your emergency fund. It's a bad idea.

2) Mind your debt burden. High interest debt needs to go NOW. Make any sacrifice possible to pay off your high interest debt, particularly credit card debt. Low interest student loan debt is different and should find a different place in your money plan.

3) Stick with your investing strategy. Your stock/bond allocation should make sense for you in general, regardless of the market. You should be dollar cost averaging and buying through any bear market (these are the dollars that will make you the most money). If this sounds like Japanese to you, you need to create a written investing plan

Take Money Boot Camp for White Coats to make sure you're ready with your savings, investing strategy, and a plan for your debt! 

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