Navigating a recession can be overwhelming, but being prepared before an economic downturn hits can help you get through to the other side successfully. SoFi has created this hub to provide you with information and resources to help guide you through uncertain economic conditions and market volatility.
Let’s first dive into some resources that briefly explain what a recession is, the history of recessions in the U.S., and some fears you may have about a stagnating economy. Although economists use multiple definitions to describe a recession, a widely accepted version is a decline in economic activity that lasts several months.
Since recessions are declared after they’ve begun, the ideal way to prepare for one is by planning for any economic hardships that may come your way. In other words, the old adage about preparing for the worst and hoping for the best applies. That said, fortifying your finances later is better than never. Here are a few tips and topics that can help you better weather an economic downturn.
Having an emergency savings fund is key to navigating a recession. A common suggestion is to save three to six months’ worth of expenses for unexpected events. You might consider saving a little towards this fund each month if you have the ability. You never know how long a downturn will last, so having a rainy day fund can be helpful to combat unforeseen circumstances during hard times.
How Much Money Should Be in Your Emergency Fund?
Why Having Emergency Savings Should Be a Financial Priority
You can take little steps to organize your finances that may help during a recession. If you don’t already have a monthly budget, this can be an excellent place to start. Take a look at your income and expenses each month to determine how you should be budgeting.
Getting Back on Track After Going Over Budget
Saving money is important for a lot of people, especially during a recession. With so many pressures and things to spend money on, it can be hard to find the time or energy to save. Luckily, there are lots of easy ways to save money. Take a look at your bank and credit card statements to find out what other opportunities for cost-cutting you might be missing.
15 Creative Ways to Save Money
By: Liz Young | Updated: Sept. 15, 2022
According to estimates, this month was expected to be the first where CPI would post a negative m/m reading since May 2020. Instead, we got a positive 0.1%.
Staying in the market during turbulent times is a lot about staying cool and calm – and keeping your eye on the long term. For more strategies on how to face investment challenges during a recession, check out the articles below:
Whether the economy is booming or shrinking, it’s a good idea to stay up to date on the latest information about the economy. Here are some essential economic topics and the tools the government may deploy to help mitigate a recession.
SoFi has the resources to help you protect your personal finances before, during, and after a recession. Whether you want to save for the future, start investing, build a budget, or set your financial goals, SoFi has the tools to support you based on your unique needs.