By: Ezekiel Gacee

Is there a looming recession? A few months ago, the idea of a recession in 2020 hardly seemed possible, but times have changed. Just by the number of people seeking information about a recession will tell you that there is a growing concern that there is a possibility of an economic slowdown in the coming months. In what could reinforce the case of a recession, some of the critical contributors highlighted by experts are the continuing trade conflicts with China, deceleration of the economy in Europe and China, fluctuation of oil prices, and the potential of tighter fiscal and monetary policies.

So how should you plan for the looming recession, which will probably be the worst in history?

Keep an open mind: during a recession, your surroundings will be all about doom and gloom. You will hear things like-you will lose your job; your portfolio will take the most significant hit, you will lose money and many other negative sentiments. The media has a way of exploiting these concerns because they know that fear sells. As soon as you learn that there is an impending disaster, you will want to know more.

However, this is everything you need to avoid during the recession. Instead of focusing on all the negativity around you, create an action plan to help you navigate the turbulent times.

Pay off your debts: whereas debt is already a problem during an economic boom, it is even a more significant problem during recessions; this is especially considering that there are many uncertainties during recessions. There is the possibility of losing your job or a massive decline in your investment’s value. It does not necessarily mean that you have to pay all your debts.

The idea is to spend as much as you can on improving your financial situation. 

Conclusion: If the world is just about to sink into a recession, this is not the time to panic; this is the time to develop actionable strategies that will enable you to survive financially even if the global economy does experience a sharp decline. If the lessons from the past are anything to go by, recessions tend to be very temporary.