Financial Management during a Recession - (the escape route from poverty in a recession)
A lot of people are trying to manage their money, well they have been doing this for many years but it becomes a more difficult thing when it is has to do with money management during recessions. At this point, the government is confused, the bank is confused, financial institutions are doing a trial an error method, so who are you not to have issues with managing money. It isn’t easy to grow money during a recession but is it worth it?
It is very important to grow your money, guide your money and keep your money but it requires a lot of skill to do this same things during a recession. Money management during a recession involves spending less money, earning more of it, and invest with money. It can be said easily but it isn’t as that. In the world generally, 4/5 of the population do not have up to $1000 as savings, it doesn’t matter the currency you are spending, just convert it to the US Dollars and do the judgment yourself.
In a recession, the first thing that gets into people’s mind is panic and when panic sets in, money starts to fly and move with no order. A lot of people tend not to have a savings, be in debt, and this continues as long as there is no order for the flow of money. A lot of people never had a savings before the recession which has brought lots of trouble on them but the best thing to do is to start keeping a particular amount of money in the bank in case there is an emergency. This is visible with this current crisis as a lot of United States citizens started saving after they received the government stimulus cheque.
After doing this, the best thing you can do is invest. I am not going to one those guys who will be pitching to invest now so you can make your money and about 25-30% in one year, I am going to be telling you that when you invest, you can lose part or all of your money also, you can make profit from it but if you do not give it a try, you won’t be able to grow your money. Money management involves keeping money and growing money. During a recession, good investment go on sale at a reduced price and what a lot of people do is buy investment at a cheap price but you need to able to identify a good investment. Do you due diligence before investing a penny of yours anywhere. Analyze and do your research on whatever investment you are getting into or invest in an index fund.
This recession is just starting, and a lot of uncertainty is out about the economy and finance but one thing to do in this period is earn more money. A lot of people have been using the internet to make more money during this pandemic and recession as people start doing freelance, working from home has given people the avenue to make more money by getting more jobs that were outsourced. There are more ways to get this thing done and earn more money during this recession.
This recession will make a lot of people and will break a lot of people, it is dependent on finance and the ability to manage it well.
