No. We’re not talking about a hairline recession.
We’re talking about the economy.
The United States economy has had an unprecedented rate of expansion but expansions do not occur indefinitely.
A typical correction always occurs.
The economy ebbs and flows.
The world goes through booms and busts. Money comes and it goes. This is almost an unwritten law much like those evidenced in physics and thermodynamics.
Everything is amazing when the economy is booming and less so when it isn’t.
Let’s talk about what a recession is and how one can prepare for a potential slowdown in the economy.
The Definition of a Recession
A recession occurs due to an economic slowdown. Individuals can witness few or a host of issues such as a decline in jobs, an overall decrease in consumer spending (affecting corporate earnings), decline in business and overall business growth and an overall economic malaise.
Why does a recession matter?
Recession Awareness
A recession matters because it may affect lives in more ways than one. Depending on the severity of the recession individuals may see a loss in jobs and a potential reduction in their asset values.
Both of these issues will certainly affect you, the bitcoin or altcoin hodler and as such, it is best to prepare.
Preparing For a Recession
Save Money
The first step to preparing for a recession is saving. Set a cash savings target over the next few months to help protect you through potential economic storms. Experts suggest having a cash savings target that would cover you for six months or more. As such, you wouldn’t be caught off guard in the event of an emergency. Aim to save a portion of each paycheck until you meet your savings target.
Add Income Sources
Once you’ve started the habit of saving start to look for additional earnings opportunities. This helps you to be have different income opportunities in the event of job cuts or lay offs in your local area.
Eliminate Debt
Furiously minimize your debts. Start today.
Preparing is Easy
Thinking about preparing is easy. Actually doing so is the hard part.
Remember to start small. Take action and to keep building each day.
