According to a recent news article on CNBC, the US could be heading for a period of recession in 2019. This will have a profound effect on many families, and in some cases, this economic downturn (should it happen) will prove detrimental to their financial and personal welfare. Should you be worried about the recession in your own family life, we have some tips to help you.
The Effects of Recession
Recession can affect people in a number of ways. These include:
- A potentially long period of unemployment and financial losses.
- Feelings of low self-esteem and uselessness while out of work.
- Tension within family relationships.
During a recession, times are bleak. Yet there are ways to cope and survive during this difficult time.
Instead of going under with the stress and pressure imposed during a recession, it is important to maintain a positive attitude. Here are some tips to help you survive.
- Consider short-term solutions to help you manage your finances. This could include borrowing from friends or hard money lenders, and by speaking to your local bank or a debt organization for advice.
- Think about the long term. While you should apply for all the unemployment benefits available to you, it is also important to apply for as many jobs as possible, or relocating to a place with better employment stability.
- Use the time off work wisely. This can include taking on voluntary work, which will both enhance your employability and give you a sense of purpose during the day.
- There may be a necessity to rethink your career plan. Again, voluntary work will lead you into a new path and give you valuable experience. It is also worth thinking about going back to school. Taking extra qualifications will stand you in good stead when looking for your next job.
- Manage the money you do have. Formulate a budget plan to help you spend wisely, and avoid impulse spending. Use online comparison sites to help you find better deals for insurance and utility bills, and while it will be difficult to make many savings, try and put a little away each month for emergencies.
- Instead of letting tensions affect your family life, use this time to grow closer together. Spend time outdoors and indoors with activities that don’t cost a dime, and enjoy, rather than tolerate each other’s company.
- There are many ways to make some extra money on the side. While you won’t make a fortune, you can still put this money to good use. Put it in your savings jar and use it when you need it the most.
- Consider self-employment. By starting your own business, you can utilize your skills to get you out of the unemployment line. To get you thinking, here are some business ideas that may suit your skillset.
It’s no good sitting and worrying about whether a recession will hit your family life, or not. Prepare for the worst now, make savings where possible, and consider ways to better your future. The tips above should prove useful before and during a recession. If you have further ideas, please let us know.