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How Do I Recession-Proof MyLife?

Arthur is an online entrepreneur and has done just about everything you can to make money online to varying degrees of success.

ways-to-recession-proof-your-life

It has been ingrained in us that recession is a terrifying word. While it is not the situation we want the economy in, it is not as terrifying as the news wants to make it. With a few adjustments to your daily life, you will survive the coming storm and come out of it better off than you were before.

What Is a Recession?

A recession is defined as, "A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters". (1)

Basically, it means that businesses aren't producing as many goods which has a ripple effect through the economy causing companies to layoff employees, stock prices to decrease, and inflation to increase.

As the U.S. likely enters into another recession here are a few ways that you can recession-proof your life now and in the future.


1. Get a Side Gig

The best way to weather any financially challenging time is to have a side gig that you do all the time or can pick up whenever needed. Luckily, the internet has mad side gigs so much more accessible than they once were, so many of them are plug and play.

A few easy side gigs that anyone can do right away are Door Dash, Uber, and Instacart. However, if those don't sound ideal - especially when gas prices are through the roof - there are plenty of other side gigs that may take a little time and a learning curve to get off the ground. A few of those ideas include freelance writing, flipping, and handiwork.

These jobs are never meant to be permanent or full-time, but more power to you if they become that way. Often they are a temporary way to make ends meet and will help you through the tough times in a recession.

2. Plan Your Shopping Trips

One of the hallmarks of a recession is higher gas prices, which, mixed with reduced income, can make for a bad situation. In a recession, gas is a commodity you want to save any way you can, especially if you have a long commute.

One way to reduce the amount of gas you use is to plan your shopping trips around when you are already out, so you are not driving back and forth between your house. For example, shop after work or do all your shopping on one day, and if you do need to leave the house for something, ask yourself if it is absolutley necessary or if it can wait until your next shopping trip.

3. Learn How to Cook Smarter

If you don't know how to cook, now is an excellent time to learn, but if you already know how to cook, it is time to learn how to cook smarter.

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The first thing you want to do is be smarter about how you buy your proteins. Meats are easily the most expensive part of a meal, so if you can get them on special (and you have the storage), stock up on them. Also, don't be afraid to cook large portions of filling foods like stews and chili and freeze them for a later date.

If you are not in a position to store leftovers for long periods, choose meals with similar ingredients so you can use the same protein throughout the week to create new meals. (2)

4. Grow Your Own Food

Growing your own food is not just a recession buster, it is something that will help you throughout life. Whether it is a temporary recession or a full-on apacolupse, those who can create food for themselves will be in a much better position.

If you don't have any experience growing your own food start with something simple like Back to Roots' cherry tomato growing kit. I prefer back to roots because everything is straight forward and their seeds actually grow. They have several grow kit options so you can create a window sill garden and save money on vegetables.

5. Minimize

In times of abundance, we tend to buy things we may want but not necessarily need. One way to weather the extra financial burden of a recession is to thin out some of your material goods. Taking to any online marketplace to sell extra clothing and goods you don't need can make you a little extra money.

It's not just physical goods either. For example, the average American has nine entertainment subscriptions on average. (3) Even if these subscriptions are only a few dollars a month, they can all add up. In addition, you may have other subscription services beyond entertainment that you are not using, and you can save a lot of cash every month by canceling or suspending these subscriptions.

6. Don't Stress Too Much

While a recession is primarily a negative thing, a lot of good can come from it, and most of them are short-lived. Focusing too much on the day-to-day stress of the recession will only take your mind away from thinking about other ways to survive this temporary setback. While you may have to tighten your belt a little, it is unlikely that a transitory recession will create any long-term problems for you.

7. Learn for Next Time

The most important thing you can do to recession-proof your life is to learn from past mistakes to prepare for the next one. This won't be the last recession you ever face, but it can be the last one that stresses you out. When you know how to survive even the toughest of economic downturns, you will have peace of mind that you can make it through anything the economy has to throw at you. Don't forget, once you have made it through this recession, start saving for the next rainy day because the more money you have in the bank, the easier it is to make it through a relatively unscathed recession.

References

(1) https://www.lexico.com/en/definition/recession

(2) https://thefinancialdiet.com/8-realistic-ways-to-stretch-your-food-budget/#:~:text=8%20Easy%20Ways%20To%20Stretch%20Your%20Food%20Budget,and%20pantry%20that%20needs%20to%20be%20used%20up.

(3) https://www.digitalmusicnews.com/2021/04/19/subscription-fatigue-report-2021/#:~:text=The%20average%20US%20household%20has%20nine%20paid%20subscriptions,Deloitte%20looks%20at%20the%20subscription%20habits%20of%20Americans.



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