The immediate reaction to an economic downturn is typically one of panic. You may have fears about losing your job, the rising costs of things, and even the crashing market. However, giving into recession fear is one of the worst things you can do. Instead, it will be essential to create a plan of action to survive – and thrive – during this time. 1st & Main Investment Advisors share tangible tips on getting through a recession below.
Be Intentional About Your Purchases
Being Minimalist reports that most people aren’t intentional about their everyday purchases. Perhaps you walk into a grocery store and buy items you don’t need (or want), or maybe you have an online shopping problem. Either way, it’s time to get more intentional about your purchases so that you get the most out of your money. One of the best ways to do so is to read product reviews and ratings. This will help you buy products that have staying power and are worth the investment during this time.
Get Help For Your Mental Health
According to The Hill, 1 in 4 Americans is depressed. Symptoms of depression can be exacerbated when you have financial difficulties weighing you down and impacting your everyday life. In such cases, you may want to visit a mental health professional to work out your issues. When visiting a licensed professional, they may determine appropriate treatments for you, like antidepressants or the best depression medications. They will typically do this by considering current symptoms, other medications being taken, and pre-existing medical conditions. However, antidepressants may not be suitable for every individual, so it is paramount to have a mental health professional closely monitor any side effects to your wellbeing and safety.
Invest Where You Can
We get it – the last thing you want to do during a recession is to save. However, there are many benefits to stretching your dollar as far as possible, the key among them being that you’ll be able to invest your money. Investing during a recession is a good idea because market rates will be low. In addition, this helps you work towards your future retirement needs or an emergency fund. The key to doing this is to not overdo it – find ways to consistently save, even if that’s slower than you’d like. For example, you could increase your 401(k) contributions or invest your money into a Roth individual retirement account.
If you’re still nervous about the recession, remember that we’ve seen our economy sink and soar countless times in history. At the end of the day, surviving a recession will happen naturally. But by taking matters into your own hands and managing your finances better, you will set yourself up to thrive during this difficult time. Don’t forget to seek help along the way – whether it’s for depression or for your home refinancing – and you should be good to go.
Looking for sound financial advice? At 1st & Main Investment Advisors, we have over 30 years of experience in tactical portfolio management. Click here to check out our services today!