Published on September 1st, 2020
You never know when the tide is going to turn in the economy. This unpredictability can be stressful, and no one can confidently state that they are fully prepared for anything life throws at them. There are things you can do that help ensure you are in the best position possible if trouble arises.
Have A Solid Education
If you do not have a college degree and have put off obtaining one, now may be the time. Many colleges offer a wide range of online classes. This flexibility allows you to continue to work while earning your degree.
There are a variety of resources available to help you pay for classes. In addition to grants and federal loans, you can take out private student loans to help cover the cost of your tuition and related expenses.
Build A Healthy Emergency Fund
If you do not have an emergency fund in place, now is the time to start one. If you do have some money set aside for one, continue to add to it. You want to have at least three months of expenses saved, and six months or more is better. Having money set aside for unexpected expenses helps lower your stress when times get rough.
It is also nice to have that money set aside for emergencies, to avoid the need to put them on a credit card. When times are tight, the last thing you want to do is build up credit card debt. Park your emergency fund in a high-yield savings account where you can access it if needed.
Keep An Eye On Your Credit Score
Having a strong credit score is important for various reasons. You need good credit to rent or obtain a mortgage. Many prospective employers will run credit checks before hiring you.
Having a good credit score also allows you to obtain credit if you need it. While you hope this doesn’t happen, knowing you have access to credit can help ease the uncertainty that comes with an unpredictable economy.
Track Your Expenses
Keeping a budget that you use to track expenses is always a good idea, but it is even more vital when the future is uncertain. When times are good, and your job is stable, splurges and treats are fine. When things start to look a little uncertain, you may want to reel in some of your unnecessary expenses.
Eat at home more and skip the online shopping, or whatever your usual splurge is. The peace of mind you get from having a cushion in the bank makes it worthwhile.
Prepare, But Don’t Obsess
There is nothing you can do to control the economy. All you can do is make sure your finances and personal living situation is in the best possible position no matter what the future holds. When you see the uncertainty in the world, it can be easy to obsess about things in your own life.
This is unhealthy and creates added stress. Make time to get outside, exercise, or go for a regular walk, and spend some downtime doing things you enjoy, such as reading or gaming.