Personal finance expert Suze Orman discusses how to protect yourself financially as the possibilities of a recession loom.
As the economy continues to struggle, it can be difficult to know how to handle your finances during a recession. But with the right strategy, you can make smart money moves and come out of the recession in a better financial position. Here are some of the best money moves to make during a recession.
1. Create an Emergency Fund: An emergency fund is essential during a recession. It’s a cushion of money that you can use in case of unexpected expenses or job loss. Aim to save at least three to six months’ worth of living expenses in an easily accessible account.
2. Get Rid of Debt: High–interest debt can be a huge burden during a recession. Try to pay off as much debt as possible so you can free up more money for savings and other investments.
3. Invest in Stocks: Stocks can be risky during a recession, but they can also be a great way to build wealth over the long term. Consider investing in stocks that have a long history of outperforming the market.
4. Invest in Real Estate: Real estate is another great option for long–term investing. Consider investing in rental properties or flipping houses.
5. Take Advantage of Low Interest Rates: Low interest rates can be a great opportunity to refinance your mortgage or take out a loan at a lower rate. This can help you save money in the long run.
6. Build Your Skills: A recession can be a great time to invest in yourself. Take classes to build your skills and increase your value in the job market.
By following these money moves, you can make the most of a recession and come out in a stronger financial position. So take control of your finances and make smart money moves during a recession.