Arvin Ash

How to prepare for a Recession - It's Coming (2019x24)

Udgivelsesdato: Maj 08, 2019

Recession 2019 - could it happen? How to prepare for a recession? Will we have a recession in 2019? Yes, it’s very possible. The economy seems strong right now. But the U.S. has seen a quarterly economic expansion since 2009, 10 years. This is 4 years longer than the average expansion. This kind of growth can lead to inflation, and rising interest rates. And these are the biggest causes of a recession. So sometimes the law of averages can punch you in the face. A recession is a downturn in the economy that officially it occurs when the GDP or gross domestic product of a country is negative for 2 successive quarters, or 6 months. These recessions are inevitable. But they tend to sneak up on people because the statistics are not available until well after the 2nd negative quarter is over. So you don’t really know when you’re in a recession until it’s behind you. So it’s best to prepare for a downturn when things are good, like right now. It’s likely to come from self-inflicted wounds. Things like an escalating trade war with China. A hard Brexit for the U.K. Downturn in consumer and business sentiment, and political change in the U.K. or U.S. - these are all likely possibilities right now. Here are 6 small tips that can help you be prepared for this inevitability. And if the downturn doesn’t come, you will just be better prepared for the time when it does. 1) Pay off debt. There is nothing like being free of debt in order to increase your cash flow. Credit card debt should be first on your list, since it is the most costly at over 17% average interest per year. Mortgage debt is the least costly, and there are tax benefits, so it is not usually advisable to pay off this debt. But if you have automobile debt, personal debt, or other types of debt of over 7% APR after tax, then it is usually advisable to pay it off. 2) Reduce spending. A penny saved is a penny earned as Benjamin Franklin said over 200 years ago. Skip a vacation and