How to prepare for a recession
With several economists saying the U.S. is in a recession, it’s important to understand what a recession means and how it will impact our money.
Local financial professional Barry Bigelow from Great Waters Financial joins us with tips to financially prepare for a potential recession.
A recession is defined as two consecutive quarters of low production or negative Gross Domestic Product or GDP. Many people associate recessions with the stock market crashing, which often happens, but in reality, recessions affect every area of the economy.
Families can reassess their household finances, by taking time to understand how a recession would impact your personal finances. It’s easy to get caught up looking at the big picture, and it can be very overwhelming. Instead, ask yourself if a recession would impact the industry you work in or your household. Don’t make any major money moves. Maybe it doesn’t make sense to make a large purchase during a recessionary period. It can also be easy to let our emotions take control of our investment decisions. If you have questions about what to do during a recession, meet with a financial advisor.