Secrets to overcome the economic recession by improving the own finances

Secrets to overcome the economic recession by improving my finances

 
When we are living in a time of inflation and economic recession, it can be hard to know what to do with your personal finances. Economists and finance Experts understand these concepts, but for the average citizen, they can seem far out of reach. I personally belong to this group who only knows about these ideas through their daily experiences. As this recession could potentially affect many more people who don't know much about them, I wrote this article to provide some insight.

What about an economic recession?

In short, all your expenses will increase, the most important thing is not to stand still without taking action. therefore it is best to start.

Shield yourself financially for a recession

Yes, it is possible to create a shield that cover us from the recession process, which will depend on several factors, such as: our current economic situation, the country where you live and the actions that we are willing to take.

To guard against the recession's effects, here are some steps to take: 

Firstly, build an emergency fund of 3-6 months worth of expenses

For this you must list your basic expenses, write down everything that is essential for you: food, rent, services and how much is minimum  that you need to cover them monthly, write down everything on a sheet and this will give you the amount you should get, this will be your first goal.

The question that comes to us now is: how do we create this emergency fund if with great difficulty we reach the next payment?

Two words Discipline and Action.

 Secondly, diversify your income streams and manage your costs 

Diversify income streams by doing additional work or selling things and controlling expenses; and making stable.

Look for some form of additional income, be it on the internet, selling something, some additional work, teaching classes, you know your skills until they help you generate money.

Sometimes we keep a lot of things, maybe it's time to sell them to help us generate the income we need, social networks as Facebook, whatsapps and others, help a lot in that. 

If you have some additional money available. Finally, look into stable investments like stocks or gold to help your money grow.

Overall, we must stay active without becoming paranoid or too tight on our spending habits. Life is short so it's best to balance out situations while still finding happiness along the way.

 If anyone has any advice they want to share from their own experience feel free post it in the comments section!