Talk about a dire warning.
- Many financial experts are warning of an upcoming recession.
- Some experts argue that the road ahead could be very bumpy.
The trouble with recessions is that they can be difficult to predict. But the last major financial crisis to hit the US (apart from his 2020 event, which was apparently due to a pandemic) was due to one expert. Did it Predict.
Economist Nouriel Roubini was spot on when he said in 2008 that the US would endure a major financial crisis. And now he’s issuing dire warnings of a possible recession in late 2022 or early 2023.
To make matters worse, Nouriel Roubini says the next recession should not be considered short-lived. Rather, he says Americans should expect a “long and ugly” recession. Oh.
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At this point, no one will blame you for curling up in a ball, blaring angry music, and getting ready to destroy your emergency supply of stress candy. It can be confusing, and this latest warning certainly paints a pretty bleak picture.
But the good news is that if predictions like those made by Roubini come true, there are steps we can take to weather the recession. Here are a few.
1. Increase your savings
The scariest part of a recession is the rampant unemployment. That’s what happened in 2008, and a prolonged recession could push unemployment up again. But a great way to protect yourself during a layoff is to increase your emergency fund.
In general, it’s a good idea to have enough money in your savings account to cover at least three to six months of living expenses. If you’re still well-employed, it doesn’t hurt to save more beyond the six-month threshold. That way, even if the recession drags on and you’re out of work for months, you still have a way to pay your bills.
2. Save money
Thinking about renewing your cable plan or gym membership? Not so soon. If the economy gets worse next year, you’ll want to hurt yourself by spending less rather than spending more. Think about recurring bills that you don’t necessarily have to keep paying. You may find that you can cut back on some expenses, still enjoy life, and have more options to bank extra money.
3. Improve your job skills
Sometimes the most skilled and talented employees lose their jobs during times of economic hardship. But the more you try to improve your job skills, the more protection you have in case layoffs hit your company. After all, if you bring more to the table than your peers, your manager may have a hard time letting you go.
try to keep calm
The thought of recession is terrifying. Especially the “long and ugly” ones. (I can’t help but shudder just reading that.
And while Roubini may have been right in the last crisis, he may not be right this time. So taking his warning with a grain of salt pays off.
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