Financial experts are sharing life-saving tips that could come in handy during a possible upcoming recession that can trouble people in every walk of life.
According to Terry Green, the president of eSports Insurance, every business should expect to see a decline in revenue during the recession. He advised business owners to reduce unnecessary spending before the recession to prepare for a possible economic downturn ahead.
Green noted that businesses can increase their cash reserves by slightly increasing the prices of their offerings and paying back all the money borrowed under high interest rates.
Another economic expert, Dennis Shirshikov, who leads the growth department of the real-estate business GoSummer, said that the first step every person should take during a time of recession is to increase their savings for rainy days. He argued that losing jobs and seeing your income reduced during a recession is a common phenomenon, and the situation can be further exacerbated by unexpected expenses.
While most financial experts suggest that your emergency savings should sustain you for at least six months, Shirshikov recommends increasing your savings to cover one year of expenses in anticipation of recession threats.
He suggested that people who had saved substantial funds before previous recessions were able to live comfortably during downturns and managed to invest in ventures that became attractive during economic recessions. The financial expert further stated that cutting unnecessary expenses, selling non-essential items, and pausing retirement contributions before the recession can help conserve funds. He noted that these steps may seem difficult at first glance, but they drastically reduce your chances of facing an economic emergency during the recession.
Meanwhile, Dalton Tigner of Tigner Insurance & Associates said that the first thing he would recommend to everyone is to reduce debts before the recession, as it could otherwise increase your suffering.
Tigner believes the key to navigating economic instability during a recession is to remain calm, spend wisely, and explore timely opportunities.
The founder of another insurance company, Prestizia Insurance, John Crist, also suggested that he recommends reducing debts and saving aggressively before the recession to avoid financial troubles. Crist claimed that having a solid cash reserve in the recession allows you to capitalize on economic opportunities that come during these times, adding that businesses should also try to increase their revenue streams to diversify their risks.
Most financial experts believe that the US can enter an economic recession somewhere next year.
