76% of Adults are Making Lifestyle Changes to Prepare for a Potential Recession

[Davidvictorson]

According to a new survey, three-quarters(76%) of U.S. adults are delaying big purchases and reducing debts since they are worried about an impending economic downturn. Below is the summary of the findings:

• 34% of Americans are delaying major purchases like a home or a car
• 29% are paying down debts
• 28% are planning to reduce holiday spending
• 24% are allocating more income to savings
• 24% are staying in a job they do not enjoy

If ever a recession hits, there is likely to be a downsizing-i.e., a lot of workers are most likely to lose their jobs. Experts have suggested that emergency savings would act as a financial cushion. Here are their recommendations below:

• Dual-income families should save at least 3 months’ worth
• Single earners should put aside 6 months or more
• Entrepreneurs should set aside 1 year of expenses

In addition, from a personal standpoint, investing in a cryptocurrency, especially bitcoin, acts as a buffer against the harsh realities of a recession.

Please share your personal experiences on how people in your country are preparing for or dealing with a recession.

[1715253415]

1715253415

[Apocollapse]

In addition, from a personal standpoint, investing in a cryptocurrency, especially bitcoin, acts as a buffer against the harsh realities of a recession.

If you don't have idle funds since you only have an emergency funds or funds to survive around a year, how can you invest in Bitcoin? This is why everyone shouldn't spend too much money for unnecessary thing like holiday, major purchases, branded clothes etc. If they're learn a good money management before potential recession happen, they will have idle funds to invest in Bitcoin when the price will cheaper than before.

• Dual-income families should save at least 3 months’ worth
• Single earners should put aside 6 months or more
• Entrepreneurs should set aside 1 year of expenses

In short have a lot money, have a lot job especially passive income.

[adaseb]

Well we had pretty much 3 recessions since 2000. So people learnt that they obviously aren’t fun.
Many occupations get affected, maybe doctors is one that isn’t affected but many jobs are not recession proof.

So people are holding back and preparing which is smart. Very crazy how back in 2000 and 2008, everybody was caught by surprise but now everybody is preparing for the recession. The way it’s looking it seems there might not even be a recession.

[Don Pedro Dinero]

Well, I am glad that is the case. It's better to face a recession having prepared for it in some way than to spend like there's no tomorrow, go into massive debt, without even being aware that a recession might come, and then run into it and end up being foreclosed on.

Well we had pretty much 3 recessions since 2000. So people learnt that they obviously aren’t fun.

Of course, we had already been warned, and if you followed the economy a little, you could see that at some point in the near future we were going to have another crisis, regardless of the war that is happening, because the solutions to the 2007 and 2020 crises were a flight forward by the central banks by flooding the markets with liquidity.

[Moneyprism]

in fact,, by reducing consumption and debt from people,, it will accelerate the recession itself.. this recession cannot be overcome by the citizens alone, the government must be able to provide incentives, provide programs that improve the economy and also tax amnesty to increase people's purchasing power

[bittraffic]

Even before the announcement of a big identity like Bezos people are already making changes due to the cost of living. There were already reports that people in Europe are skipping meals just to survive the day.

It's why there were also speculations that due to the high cost of living there are massive protests and to some extent, there could be civil war taking back the EU to the dark ages. Not just the EU by the way.

[Flexystar]

This is a lovely discussion for the current timeline and everyone should follow this. Whether this survey was conducted throughout America or just part of America and little population does not matter. What matters is, every bit of the answers above are true.

In fact in my locality we have already started to get feel for recession. At least 3 in my family circle are facing employee lay off in their IT company. Daily expenses such as buying grocery/veggies are doubled or tripled in their base prices and common man could already feel that.

If I turn on any news channel then farmers are crying for their lives because:
1. Their crops have been hit by unwanted rain and floods.
2. There leftover crops are so costly that people are switching to cheap junk food and thus farmer is not even able to recover farming expenses, how they can survive the families?
3. Most of the labour workforce has been reduced by large companies to cut down expenses. I can see their groups over news everyday asking and literally begging for the Governments Help!!
4. As the time is passing things will escalate to whole new dimension of cost per household - too costly to survive.

These are the time to follow the rules in OP. Sadly not everyone gets to enjoy them since many of them are under common man line and loosing hopes from all side.

Tough times ahead, just hold on and save as much as we could.

[CageMabok]

in fact,, by reducing consumption and debt from people,, it will accelerate the recession itself.. this recession cannot be overcome by the citizens alone, the government must be able to provide incentives, provide programs that improve the economy and also tax amnesty to increase people's purchasing power

Besides that, everyone who has creativity in terms of certain product innovations that are often used by the community can also create their own works which can then be sold in the market, because it can also trigger an increase in buying in the community. The government in this case can also help to make more innovations and increase employment so that people's purchasing power does not decrease and can also run stably.

[Tytanowy Janusz]

"76% of Adults are Making Lifestyle Changes to Prepare for a Potential Recession"

Meanwhile 42% of US citizens have less than 1000$ in their savings account. 58% have less than 5000$. -https://www.zippia.com/advice/american-savings-statistics/

They might be delaying big purchases and reducing debts but there are nowhere near being ready for potential recession.

[hugeblack]

The current problem is not stagnation, but rather the difficulty of predicting economic variables, or what is known as the state of uncertainty, which makes making investment decisions very confusing.

Many people tend to celebrate it with cash or gold and reduce unnecessary spending until the recession is confirmed and thus dealing with its tools or that the economy will recover and thus investing in stocks and others and thus reviewing the background of the central bank manager in your country will have the greatest impact in determining your investment plan for the coming months in addition to reserve decisions federal.

[Gallar]

• in my country also the same,
but most of them are people paying off their debts and paying off their mortgages.

• Regarding saving money, it still seems normal as before.
• When it comes to work, it's still normal as usual, indeed, in the past year many people were removed from work due to the COVID-19 outbreak, but now they are back at work.
• and when it comes to vacations, in my country vacations don't cost too much money, because most of the holidays are to the beach or to the zoo, so it's not too much money,
it's people around me, I don't know people who are not around me or from different regions.

[Gyfts]

The recession is already here when the U.S. GDP reports showed two consecutive quarters of negative GDP growth. All the financial models show a guarantee of recession within the next 6 months, which is to say that the Q3 GDP report will show more negative growth. Europe will be having similar troubles once the domino effect of the global economy sucks the entire world into an economic downturn.

In addition, from a personal standpoint, investing in a cryptocurrency, especially bitcoin, acts as a buffer against the harsh realities of a recession.

Not exactly. If the global economy takes a dive, crypto market's going to suffer as would any other financial market. Institutional traders won't be putting their money in assets that are volatile during a recession.

[Lucius]

I won't say that today is too late to change our lifestyle and start saving, but all those who didn't realize that they needed to take some of the steps from OP at least one or even two years ago are facing a very difficult challenge. Given the inflation that has realistically increased the price of many basic products by at least 20% (and much more), how will someone manage to save anything when there is not enough even for basic living expenses?

Meanwhile 42% of US citizens have less than 1000$ in their savings account. 58% have less than 5000$. -https://www.zippia.com/advice/american-savings-statistics/
They might be delaying big purchases and reducing debts but there are nowhere near being ready for potential recession.

If the data is correct, then it looks very bad for the average US resident, even though we all know that people keep some extra money under the mattress or in a bank deposit box. Besides, the US government has been very generous with those checks in the recent past, and although I'm not aware of any similar measures, that doesn't mean there won't be any again.

Not exactly. If the global economy takes a dive, crypto market's going to suffer as would any other financial market. Institutional traders won't be putting their money in assets that are volatile during a recession.

At the moment, the cryptocurrency market seems quite static, but we have seen this in the past in a certain period after each halving. Although inflation and the recession that follows have an impact on more or less all markets, if we look at the price of Bitcoin, we can say that it resists the current challenges very well.

What many have already learned is that there is a time when you should expect profit (in the short term) when it comes to Bitcoin, so they adapt their strategy accordingly. Few have the courage and money to invest in the long term, which means that they will wait for the time as close as possible to the halving or even after that.

[jackg]

Delaying large purchases (presumably bought on credit) makes sense when the interest rates have tripled in the past few months. People aren't likely aren't new to seeing quotes imo and it'll have put people off getting those assets (especially since cars lose their value quickly).

I've always seen the 3-6 months of emergency funds being a recommendation in the past although it's a bit late to say it now if people can't save up that money quickly (the 3 months is possibly achievable before a recession hits - though with rising inflation that's probably unlikely). Its probably best for entrepreneurs to take on other employment too if they can't afford their business expenses from their income and have some time to take on something else.

Also depending on the figures being used, the US might already be in a recession.

[Kakmakr]

Yes, rising inflation and fuel prices are triggering lifestyle changes in my country too...

~ People are buying less fast food and eating out less than usual, because they simply cannot afford it any more.
~ The market for second hand vehicles are exploding and new car sales are going down.
~ People are buying less brand name goods, because the cheaper alternative is more affordable.
~ A lot of people are scaling down and buying a smaller house, because it reduce their taxes and their Bond payments.

So, yes.... I can see the impact in my country and also in the statistics reported in the media. (Tourism has gone down dramatically) 

[naira]

In facing a recession, of course, we must be wise and mature in responding to how to survive in the midst of an economy that is completely shaky. Whether it's reducing unnecessary purchases or adjusting the investment portion not to exceed 20% cash funds. Indeed, many experts have been doing this for a long time and those who are rich should be aware that there is a recession or not the fact that they have to fulfill their basic needs to survive. I think that anticipation is important and indeed needs to be considered from now on. A recession will trigger an increase in the price of goods and services to become more expensive.

[Jatiluhung]

preparations for the Recession should be done from now on. I myself continue to set aside money for savings and part of it is included in my investment in Bitcoin. in fact I continue to save these few months. because I see this economic crisis will not end quickly. and the peak could be in 2023. So this year is a time to prepare for a prolonged economic crisis. but maybe for some people it will be difficult to save today. because inflation makes people have to spend more money. because the prices of daily necessities continue to increase significantly.
so the steps that can be taken from now on are just trying to save as much as possible. and cut expenses that are not really needed. and the people around me have also started to make preparations like I did.

[Darker45]

I doubt majority of my countrymen even know what a recession is. They probably don't know what that means and whether that's coming or not. So preparation is definitely not done. Normal people don't really make economic forecasts. But the irony is that they are at the receiving end of all this. So they are definitely feeling it. They probably don't know what this is but they know very well that the prices are rising and the worse might yet to come. But they're seldom preparing.

As a matter of fact, saving is seldom done by many people in my country. Most are basically daily wage earners who cannot survive 3-6 months on savings alone. They're living on a one scratch, one peck basis.

[jrrsparkles]

According to a new survey, three-quarters(76%) of U.S. adults are delaying big purchases and reducing debts since they are worried about an impending economic downturn. Below is the summary of the findings:

• 34% of Americans are delaying major purchases like a home or a car
• 29% are paying down debts
• 28% are planning to reduce holiday spending
• 24% are allocating more income to savings
• 24% are staying in a job they do not enjoy

If ever a recession hits, there is likely to be a downsizing-i.e., a lot of workers are most likely to lose their jobs. Experts have suggested that emergency savings would act as a financial cushion. Here are their recommendations below:

• Dual-income families should save at least 3 months’ worth
• Single earners should put aside 6 months or more
• Entrepreneurs should set aside 1 year of expenses

In addition, from a personal standpoint, investing in a cryptocurrency, especially bitcoin, acts as a buffer against the harsh realities of a recession.

Please share your personal experiences on how people in your country are preparing for or dealing with a recession.

To get better at anything then learn from the mistakes it can be from your own in the past or from others with their history but slightly on the worrying sign since how it is going to be effective when majority of the people are prepared for it cause I feel it won't be felt even if there is a recession when people are prepared for it.

From the recommendation I agree that we should have 3 months or 6 months funds for emergency purpose but it shouldn't be in the form of fiat, keep it gold or something because fiat lose its value all the time.

[darkangel11]

Of course, we had already been warned, and if you followed the economy a little, you could see that at some point in the near future we were going to have another crisis, regardless of the war that is happening, because the solutions to the 2007 and 2020 crises were a flight forward by the central banks by flooding the markets with liquidity.

This is also what Germany did after World War I. They were hit by sanctions so they printed money and created big inflation and recession, which is why Hitler was able to give people purpose and create jobs, even when the purpose of these jobs were to make war machines and munitions.
Lots of similarities between that time and now with what Putin is doing. Reduction of country's population and giving people an enemy to fight usually works against recession.