It may seem like there's always some headline talking about a looming recession. If 2009 still has you worried, there are some simple things you can do now to prepare for any financial hit.
The market crash in 2009, known as the Great Recession, was one of the worst financial crises our country has faced. And now, there's word that the next recession is looming.
“We simply can't predict with the next recession is going to arise, or how deep, or how long it could be,” says financial expert Jonathan Duong. “We just don’t know."
Although we won’t know exactly when it could happen, Duong says there are simple things you can do now to protect your finances in the future.
"I recommend starting a budget,” he says. “Not necessarily down to the coffee or run to Chipotle, but at least narrowing down what are your discretionary and non-discretionary expenses."
Calculate how much you spend a month on things you need, including rent, food and utilities. Duong says to save at least 6 months-worth in case you were to lose your job.
"When the economy starts to take a turn, they’re really going to get more conservative,” he says.
"They" being big lenders who will be more conservative with who they loan money to. So, keep get that credit score up now and pay your bills on time, Duong says.
"People don’t realize how many different elements a credit score impacts,” he says. “It can affect your ability to get a new cell phone, ability to get cable or turn on your utilities."
As for the loans you already have, if you think you should rush to pay them off, Duong says do not.
"Things like a mortgage or student loans that have a low interest rate, I wouldn't necessarily be in a rush to pay those down if it’s coming at the sacrifice of having a good emergency fund," he says.
Whether a recession is coming or not, the name of the game is save.
"It’s critical to have that savings, so if the unexpected happens, you got a little buffer you've got a little shock absorber,” Duong says.
