Recession is simply a significant decline in general economic activity.National recession is a period whereby there is a significant decline or downturn in the economic activity of a country.
How then can you survive or make it through the period of recession?
There are many everyday habits that you can implement to protect yourself ahead of time from the sting of a potential economic downturn or recession. Here are 5 tips to help you survive a national recession.
1. Having an emergency Fund
The key to riding out a recession starts with planning ahead for the worst case scenario. Emergency fund are usually money set aside for unforseen contingency.The scope here is you save more when you have enough for a period where u don't have or you have less.This will help improve your financial security during the period of recession.
2. Multiple sources of income
Having multiple sources of income helps you to keep ahead of recession.During the period of recession people tend to loose their job as a result of the economic downturn.More reason why you need to have multiple sources of income and never depend on one source of income.You could get a job online, also run a business and also engage in investing activities.Loosing a source of income doesn't have much effect on your cash inflow due to multiple sources of income you have .
3. Live Within your means
During the period of recession it's advisable for you to cut of some of your expenses to avoid debts.You can do this by ranking your needs.Cutting of some expenses will help you live within your means.Living within your means is living within what you earn as income.Its wise for you to draw a budget for you to know how and where you are to channel your money to.A budget helps you to keep track of you spendings and by doing so you can live within your means.
4. Surplus investment
Having lots of investment during a period of recession helps in producing series of cash inflow. Getting dividend from all your investment will be a lot of advantage to you during these period as it helps you meet up with your basic needs when all other options have their shortcomings.
5. Adopting subsistence method of farming
Having a farm or nursery where you plant crops and cage or small space to rear domestic animals for your family helps reduce your spending on food during the period of recession.Doing this you avoid the increase in price of goods and you spend little or no amount of money on food when you have all crops produced on your farm and you eventually can save up your money for some other needs.Crops like fruit crops,tubber crops etc.Tubber crops like cassava can be converted to cassava flakes (garri) ,yam can be used to produce yam flour etc and you can hereby sell it or keep it for family's immediate use.You can also decide to produce oil from palmkannels and also rear domestic animals like chicken, rabbit,goat etc.All this helps reduce your spending on foods.
Conclusion
Recession is sadly a reality in many. nations of the world today and you must be intentional with your financial life to help you
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