stevepb / Pixabay

If you’ve kept up with the business news lately, you’re aware there’s a lot of discussion about the next recession. Few who experienced the 2008 downturn got left untouched, even if they held onto their jobs. Many people’s pensions were wiped out. Further, investments became tatters. And even real estate, often thought of as the safe investment, imploded.

So, the best time to prepare for another recession is getting ready for it in advance. Some economists are suggesting the next one, which is generally believed to occur within the next 18 months to 2 years, will be much worse than the 2008 recession. Whether it is worse or not is beside the point. In short, no matter what, you should begin to prepare for it now. The following 5 things help you prepare for next recession.

Bolster savings: 

The very first thing you need to do is to make sure you are saving as much as possible. So, this is the time to stash away any bonuses or extra funds available. The general rule is to have six months of living expenses. But I knowpeople who have at least one year’s worth of savings to live if they lost income. If you happen to be an older worker, it is suggested you stash as much into savings as possible. We know that during the last recession older workers were hit the hardest regarding finding jobs that paid what they earned before the recession. And worse, many went a year or two without finding any employment.

Decrease debt:

The other top activity you should do is to make sure you’ve paid down debt. So, think of credit cards and loans to pay down as much as possible. You never want to live beyond your means. So if you’ve done it, this is the time to get things straight. Also, consider downsizing your high mortgage or rent. And if you have a fancy car and it takes a high percentage of income, you should seek a trade-in more aligned with your earnings. One of the best things you can do to keep yourself in check and get a plan together if you have too much debt or don’t know where to begin is to meet with a credit counselor. For starters, they will help you determine a date and payment plan for getting rid of the debt albatross. And if you need more money to pad your savings or decrease debt, getting a side hustle nights or weekends helps. 

Look at your employment: 

Once you’ve addressed the two previous points, the next thing to do is to look at your job. Sure, you may love what you do. Or you may hate it. Either way, what you have to do is take a critical eye and no matter the situation and prepare if you get laid off. No one is indispensable. And remember, during a recession, even if an employer thinks you’re awesome, they’ll look to keep the business from imploding. So, one of the first places to look to cut costs is with employees. Make sure, now, your resume is up to date and ready to go at a moment’s notice. Also, get your LinkedIn profile updated and ask for new recommendations from people to help increase your chances. 

Network, network, network for business: 

This is the time to warm up your old connections and get new ones. So, nurture your business relationships now. You don’t want to end up in a situation of calling people when you’re desperate. Set a goal for yourself, such as attending one monthly business networking event. and each week make it a point to keep an old business relationship warm and nurture a new one. An excellent way to keep relationships strong is to think about what you can do for others and become a valuable resource to them. Also, as you build relationships, look to meet people at higher levels of the corporate ladder than where you are since they could be the decision makers if the time should ever come that you are turning to them for a new job.

Career training or retraining:

Training, retraining or adding a credential is also one of the most important things you should consider to increase your employability. This is the time to get any additional credentials in your industry or to get retraining if you’ve wanted to move into another industry or grow within your field. Remember, when the next recession comes, even if you want to remain in your company or current sector, having additional credentials and the ability to shift into other roles and positions, may very well be what keeps you employed and saved from being laid off.

 There are several other things that you can also do to ensure that you’re in reasonable shape for the next recession, such as taking a look at your investments and making sure your credit score is high. However, accept the fact that the next recession is already on the horizon. Get yourself prepared and ready so that when it does arrive, you’re not in a situation that will devastate your family. Just getting ready and prepared is one of the best things you can do.

Author of “Not Your Father’s Charity: Grip & Rip Leadership for Social Impact”(Free Digital Download)

© 2018 Wayne Elsey and Not Your Father’s Charity. All Rights Reserved.