How to Succeed in a Tumultuous Economy

We are all experiencing fast and impactful economic changes. Inflation has hit its highest point in four decades, gas prices have increased up to the five-dollar mark, there are increased prices and shortages of products, interest rates keep rising, and many economists are predicting a recession. While all of this might sound scary, no one knows what the future holds, and our economy can change for the better just as quickly. Still, it is always best to be ready for anything. Luckily for you, there are easy to learn financial strategies that will help you succeed in a tumultuous economy. 

  1. Save, save, save! 

If you do not have an emergency fund, now is the time to start one. It is recommended to always have at least 6 months’ worth of income in a savings account in case you or someone in your family loses their job, gets injured, has an unplanned expense, etc. Start building your emergency fund by transferring a percentage of every paycheck you receive to a savings account. Do this before you pay bills or incur expenses to avoid the risk of overspending. Some employers give you the option of dividing your paychecks between multiple accounts, if requested. If you have this benefit, make use of it. This will save you the headache of figuring out the math and remembering to do regular transfers. 

  1. Pay-off your debt 

Credit card companies and banks do not lose during recessions. They instead increase their interest rates. Be diligent in your credit card payments and if possible, focus on paying off accounts with high rates. The more accounts you can pay off, the better. Not only does this lift a weight off your shoulders, but it also helps your emergency fund last longer.  

Also, focus on increasing or maintaining a healthy credit score in case your emergency fund is not enough and you need to get a loan. Lastly, call all the credit companies and banks that you have accounts with and try to lock your interest rates to avoid the chance of it increasing in the future.  

  1. Make a financial plan 

Have a clear view of all your expenses and a plan to lower future financial stress. Make a list of your expenses from least to most essential. That way, if you start to struggle financially, you will know exactly which services to cancel first. Developing a budget will aid you in producing a plan. Make sure that you always have enough income to pay all your bills and save a percentage. With a budget in place, you will know exactly at what point you will have to lower your expenses to keep your finances healthy. 

  1. Network 

The next two tips are arguably more in line with professional development, however, professional growth will increase your job stability, open new opportunities, and ultimately keep your finances steady. Build a professional network both inside and outside your job. Try to create relationships with people from different departments, make your skills known, and become a valuable asset to your employer. Also, contact professionals outside your company and recruiting firms that are interested in your talents. This will aid you in finding a job in case of a lay-off. 

  1. Expand your skills 

An effective way to make yourself valuable to your employer is to be useful in more than one way. Start thinking about what skills you need to develop to make yourself more effective at your job and aid others in the process. Make your new skills and desire for learning known through action and initiative. Also, research and learn skills outside of your job. You never know what opportunities for passive income you might find, or how one of your hobbies can help you earn some extra revenue. 

Although concerns regarding economic stability are increasing across the nation, you do not need to stress over it. The best way to approach these market shifts and the predictions of a recession are to be prepared and have backup plans. If you are diligent with your finances and professional development, you will thrive and be minimally affected by a recession; and if there is no recession, you will have extra money to enjoy. 

Written by

Jose Caceres

Marketing Manager

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