Topic: Recession? How to face It? - page 9. (Read 1206 times)

My country has a pretty bad economy, and we've been through very high inflation, so generic news about recession don't affect me at all.
The consequences of a recession seem accurate in the original post, but things to do aren't all similar to what I would do. Some emergency funds are good, but if your currency is likely to experience hyperinflation, it's important to think of keeping those funds in something else (a more stable fiat or perhaps Bitcoin). As for reducing expenses, I wouldn't do that because it's that kind of attitude that makes the recession worse, actually, as people reduce expenses and stall the economy this way. On the contrary, I spend when there's something nice or useful to buy, and think of it as my contribution to trying to stimulate the economy by keeping the money circulating. As for education and additional income source, it sounds reasonable. Maintaining health is always a good thing to do, and being patient should be a part of that.

In our country, we are not in the stage of recession, but our average unemployment here is actually very high. And many degree holders here accept jobs that are not suitable for their completed courses in the hardships of life instead of just hanging out at home.

How can it be that if our country has entered this recession, there will be more and more people who will find ways to survive in situations like this? I think that two sources of income will probably not be enough for sure at this time. Our source of income should be at least three or more.

Actually, this point is one of the things I am working on. I'm learning more things at the moment. Because I realize that one skill alone is not enough if we want to win in today's competitive job market.

It's just that the most difficult obstacle to face is feeling lazy and always putting off work. Even in the learning process, this is the case. So one of the things I'm currently facing is feeling lazy. Sometimes in the initial period I am enthusiastic about learning new things but then I always stop halfway due to being lazy and inconsistent. I know this is my weakness. And I'm trying to fix it now.

But then I found out an easier and more fun way to learn new things. Namely by studying business opportunities in the fields we like. For example, I am a person who likes taking videos in real life. And I developed it in a direction that could produce results by learning to become a video creator on social media. Even though I'm still learning. But I'm sure someday it will pay off.

#1, too late since the unexpected situations already occur.

#2, not all people can live with frugal lifestyle, most of people are forcing themselves to live with luxury lifestyle.

#3, it's easy to say than to be done.

#4, people are scared to invest and they always think every financial assets are haram.

#5, they don't want to learn because it's boring for being consistent in a same thing, they're looking an instant profit like invest in ponzi scheme project.

#6, that's true, but not all people will survive even they adapt to the current technology. Example you're a reseller from X company, X company sell a product to you $10/each, but they're also sell it to other people $10/each. It's mean you need to sell higher than $10 to earn profit, how it's possible to compete against the company that can sell $10/each and still earn profit?

On a personal level, I can only advise that people be more optimistic about things in this life, these difficulties are only temporary and we will get through this together.
The issue of inflation and recession may have been talked about a lot recently, but I think we need to have an attitude of being prepared and ready for every situation. Although this is undesirable, we still need to make a lot of efforts to get out of this stage.

The advantage of getting to know the status of your country's economy is that you can prepare. But sadly, too many citizens don't prepare for such situation because all they think is that they're living a happy life and tomorrow's gonna be fine. And there's no need for them to worry about tomorrow's situation. Then pandemic came and everyone starts to look for some survival strategies especially those that don't have jobs and have been laid off. This is the importance of having an emergency fund of at least 6 months and more. Before it was like okay to have 3 months of EF but then when things have changed, it should be more and prolonged. What's being lowkey on a recession is the emotion effect and impact that it brings to everyone that's having tough times. Yeah, you can all of that money and savings and needs but when you're hit mentally even having those, you'll have hard time to get up.

In a recession, the country's economy shrinks, and the unemployment rate increases. We should be proactive in dealing with these kinds of emergencies. In a recession, it is very important that you have a somewhat steady cash flow, limit your expenses, earn more through different means, and diversify your investments (Bitcoin, stocks, real estate, bonds, etc.). It is also necessary to have liquid investment. Emergency funds, rental income, pension funds, etc., are important in fighting difficult financial situations. Adapt to the situation quickly and have a problem-solving approach. " Where there's a will, there's a way". 
Hopefully, all of our hardships will be over in the coming months.

Yeah income stream is very important. I have some gov. pensions . Some mining income. And lastly a signature campaign here.  I normally don’t do a signature but times are a bit hard so I needed more income.

Recession don’t mean anything to you if you have enough passive income from your investments. Having some hard physical cash is important too. If your only cash flow is your pay-job, then you can worry a little bit because if you get fired, you will lose your cash flow but you’ll still have to pay the bills (rent, electricity, water, internet etc…) So you either have to have a side income which is mostly recession-proof or you need to have some cash so you can pay your bills in case of an emergency. If you don’t have any of these back up plans then the recession will ruin your life. Alternatively, you can cut down your expenses too. Just unsubscribe from the services you don’t use much.

Recently, the economic news media has always been busy with discussions regarding inflation and recession. Because perhaps this is indeed a global problem or a problem that is being faced in many countries.
Actually, news like that has two impacts on news readers. that is
1. Panic and fear
2. Be more alert and make preparations to face the recession itself.

Personally, I am actually sometimes influenced mentally, namely panicking and a feeling of fear that arises after reading a lot of news related to the economy which is experiencing a prolonged crisis which is causing inflation and is approaching recession. Several countries have even been declared to be in a state of recession themselves.

But I realized that panic and fear will not solve any problem. So I changed my mindset, namely making more effort to study the recession itself and how to deal with it if it also happened in my country. Because after all, I want to continue to have a strong economy even when there is a recession.

What I understand about a recession after reading several references is a prolonged decline in economic activity over a certain period of time. Which then causes the following things:

1. Unemployment Increases
2. Consumers are decreasing because they are becoming more thrifty and reducing their daily shopping allowance.
3. The investment zone also experienced a decline, especially from large companies who became more careful.
4. The increasing difficulty of running a business or what is usually called business uncertainty.
5. Financial instability on a large scale, such as many banks experiencing bankruptcy and the like.
6. Panic arises in the market as prices begin to become highly volatile. An example is the many price increases that have occurred irrationally recently.

We need to know more about what a recession is so we can make preparations to face it. Because if we are not ready then we may have difficulty maintaining our own economic stability. Because this recession can also increase poverty rates due to decreased levels of social welfare and even mental health problems can also occur. Like many people who are depressed when facing an increasingly difficult economic situation.

To face all of that, I think we need to make preparations in an effort to face a recession, namely with small steps like the following:

1. Start planning to prepare emergency funds for us to use when unexpected situations occur.
2. Start reducing expenses by adopting a frugal lifestyle.
3. Start looking for additional work that can make us have additional income.
4. Increase our insight into financial education. So that we can be smarter in managing finances.
5. Start preparing yourself to face a career change. By learning more skills in fields that we haven't even mastered before. So that we can be better prepared to work in any field that we can use to get more income. Because looking for additional work will not be easy if we don't have many skills that we can use in competition in the job market.
5. Maintain physical and mental health.
6. We have to be more patient and also have to push ourselves to become people who can adapt more quickly in difficult situations. Because people who cannot adapt are the ones who will lose in competition in a market that is more volatile when a recession occurs.

But we also shouldn't push ourselves too hard which can make us mentally exhausted and experience stress or depression. And we also have to realize that recessions are a natural phenomenon in the economic cycle. So don't panic and keep doing your best.

Hopefully you all can survive when the recession comes. Be the person who wins and can still maintain financial stability well. Good luck.