Today we’re going to discuss recession, what it is, and what to do during one. Spending is down, the stock market isn’t performing, inflation is out of control, interest rates are higher than we’ve seen since 1994, and we feel the effects everywhere in the economy and not just in the US.

It comes down to how we’re each living our lives financially. Do we have enough built up in our savings? Can we decrease spending on wants so that needs can be met?

Some common things that happen during a recession are:

Inflation goes up
Consumer spending goes down
Hiring slows down and may even freeze
Many people decide to go back to school
Unemployment goes up

In 2008, when the housing market crashed housing prices massively decreased. It doesn’t look like that will happen this time. We have already been through a global pandemic which has changed the economic situation dramatically, so many of us are still trying to recover from that. Only time will tell what happens from here.

My guest Brock is our tax strategist here at The Freelance CFO. Join us next week for part 2 where we’ll walk you through some anxiety reducing measures to help you through this difficult time.

We cover ALL of this in the “Get Your Finance Sh*t Together” self-study course at confidentmoneypodcast.com!

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Music credit: Neon Fairies by Wolves

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DISCLAIMER:

I am not a financial advisor and this is not financial advice. My podcast is for educational purposes and is my personal opinion only. To make the best financial decision for your situation, please do your own research and if needed, seek the advice of a fee-based, fiduciary.