It is important that consumers take the time now to start protecting themselves and their families from a potential recession.
A recession can cause serious economic harm, especially for those that have not taken the necessary steps to prepare.
ACCC offers these 6 tips for recession-proofing your finances:
- Pay down debt
Pay down credit cards, loans or student loans to create some breathing room in your budget in the event of a recession
- Build an emergency fund
It’s recommended to save 6 months’ worth of expenses in an emergency fund
- Get a side job
Extra income will help build your emergency fund and help sustain you during a recession.
- Cut unnecessary expenses
Start cutting back on expenses such as shopping sprees, premium channels and going out to eat
- Adjust retirement plans
For consumers nearing retirement, consider putting retirement funds into bonds. For younger consumers, keep funds in stocks to prepare for the economic up-turn
- Excel in your career
Continue to develop your skills so you have a leg up in your company should a recession cause layoffs.