Recession? How to face It?

[BRINIRHA]

Recession? How to face It?

Recently, the economic news media has always been busy with discussions regarding inflation and recession. Because perhaps this is indeed a global problem or a problem that is being faced in many countries.
Actually, news like that has two impacts on news readers. that is
1. Panic and fear
2. Be more alert and make preparations to face the recession itself.

Personally, I am actually sometimes influenced mentally, namely panicking and a feeling of fear that arises after reading a lot of news related to the economy which is experiencing a prolonged crisis which is causing inflation and is approaching recession. Several countries have even been declared to be in a state of recession themselves.

But I realized that panic and fear will not solve any problem. So I changed my mindset, namely making more effort to study the recession itself and how to deal with it if it also happened in my country. Because after all, I want to continue to have a strong economy even when there is a recession.

What I understand about a recession after reading several references is a prolonged decline in economic activity over a certain period of time. Which then causes the following things:

1. Unemployment Increases
2. Consumers are decreasing because they are becoming more thrifty and reducing their daily shopping allowance.
3. The investment zone also experienced a decline, especially from large companies who became more careful.
4. The increasing difficulty of running a business or what is usually called business uncertainty.
5. Financial instability on a large scale, such as many banks experiencing bankruptcy and the like.
6. Panic arises in the market as prices begin to become highly volatile. An example is the many price increases that have occurred irrationally recently.

We need to know more about what a recession is so we can make preparations to face it. Because if we are not ready then we may have difficulty maintaining our own economic stability. Because this recession can also increase poverty rates due to decreased levels of social welfare and even mental health problems can also occur. Like many people who are depressed when facing an increasingly difficult economic situation.

To face all of that, I think we need to make preparations in an effort to face a recession, namely with small steps like the following:

1. Start planning to prepare emergency funds for us to use when unexpected situations occur.
2. Start reducing expenses by adopting a frugal lifestyle.
3. Start looking for additional work that can make us have additional income.
4. Increase our insight into financial education. So that we can be smarter in managing finances.
5. Start preparing yourself to face a career change. By learning more skills in fields that we haven't even mastered before. So that we can be better prepared to work in any field that we can use to get more income. Because looking for additional work will not be easy if we don't have many skills that we can use in competition in the job market.
5. Maintain physical and mental health.
6. We have to be more patient and also have to push ourselves to become people who can adapt more quickly in difficult situations. Because people who cannot adapt are the ones who will lose in competition in a market that is more volatile when a recession occurs.

But we also shouldn't push ourselves too hard which can make us mentally exhausted and experience stress or depression. And we also have to realize that recessions are a natural phenomenon in the economic cycle. So don't panic and keep doing your best.

Hopefully you all can survive when the recession comes. Be the person who wins and can still maintain financial stability well. Good luck.

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[mindrust]

Recession don’t mean anything to you if you have enough passive income from your investments. Having some hard physical cash is important too. If your only cash flow is your pay-job, then you can worry a little bit because if you get fired, you will lose your cash flow but you’ll still have to pay the bills (rent, electricity, water, internet etc…) So you either have to have a side income which is mostly recession-proof or you need to have some cash so you can pay your bills in case of an emergency. If you don’t have any of these back up plans then the recession will ruin your life. Alternatively, you can cut down your expenses too. Just unsubscribe from the services you don’t use much.

[philipma1957]

Recession don’t mean anything to you if you have enough passive income from your investments. Having some hard physical cash is important too. If your only cash flow is your pay-job, then you can worry a little bit because if you get fired, you will lose your cash flow but you’ll still have to pay the bills (rent, electricity, water, internet etc…) So you either have to have a side income which is mostly recession-proof or you need to have some cash so you can pay your bills in case of emergency. If you don’t have any if these back up plans then the recession will ruin your life. Alternatively, you can cut down your expenses too. Just unsubscribe from the services you don’t use much.

Yeah income stream is very important. I have some gov. pensions . Some mining income. And lastly a signature campaign here.  I normally don’t do a signature but times are a bit hard so I needed more income.

[jasonjm]

In a recession, the country's economy shrinks, and the unemployment rate increases. We should be proactive in dealing with these kinds of emergencies. In a recession, it is very important that you have a somewhat steady cash flow, limit your expenses, earn more through different means, and diversify your investments (Bitcoin, stocks, real estate, bonds, etc.). It is also necessary to have liquid investment. Emergency funds, rental income, pension funds, etc., are important in fighting difficult financial situations. Adapt to the situation quickly and have a problem-solving approach. " Where there's a will, there's a way". 
Hopefully, all of our hardships will be over in the coming months.

[tabas]

The advantage of getting to know the status of your country's economy is that you can prepare. But sadly, too many citizens don't prepare for such situation because all they think is that they're living a happy life and tomorrow's gonna be fine. And there's no need for them to worry about tomorrow's situation. Then pandemic came and everyone starts to look for some survival strategies especially those that don't have jobs and have been laid off. This is the importance of having an emergency fund of at least 6 months and more. Before it was like okay to have 3 months of EF but then when things have changed, it should be more and prolonged. What's being lowkey on a recession is the emotion effect and impact that it brings to everyone that's having tough times. Yeah, you can all of that money and savings and needs but when you're hit mentally even having those, you'll have hard time to get up.

[killerfrost]

On a personal level, I can only advise that people be more optimistic about things in this life, these difficulties are only temporary and we will get through this together.
The issue of inflation and recession may have been talked about a lot recently, but I think we need to have an attitude of being prepared and ready for every situation. Although this is undesirable, we still need to make a lot of efforts to get out of this stage.

[Solosanz]

1. Start planning to prepare emergency funds for us to use when unexpected situations occur.
2. Start reducing expenses by adopting a frugal lifestyle.
3. Start looking for additional work that can make us have additional income.
4. Increase our insight into financial education. So that we can be smarter in managing finances.
5. Start preparing yourself to face a career change. By learning more skills in fields that we haven't even mastered before. So that we can be better prepared to work in any field that we can use to get more income. Because looking for additional work will not be easy if we don't have many skills that we can use in competition in the job market.
5. Maintain physical and mental health.
6. We have to be more patient and also have to push ourselves to become people who can adapt more quickly in difficult situations. Because people who cannot adapt are the ones who will lose in competition in a market that is more volatile when a recession occurs.

#1, too late since the unexpected situations already occur.

#2, not all people can live with frugal lifestyle, most of people are forcing themselves to live with luxury lifestyle.

#3, it's easy to say than to be done.

#4, people are scared to invest and they always think every financial assets are haram.

#5, they don't want to learn because it's boring for being consistent in a same thing, they're looking an instant profit like invest in ponzi scheme project.

#6, that's true, but not all people will survive even they adapt to the current technology. Example you're a reseller from X company, X company sell a product to you $10/each, but they're also sell it to other people $10/each. It's mean you need to sell higher than $10 to earn profit, how it's possible to compete against the company that can sell $10/each and still earn profit?

[Arenga pinnata]

Recession? How to face It?

5. Start preparing yourself to face a career change. By learning more skills in fields that we haven't even mastered before. So that we can be better prepared to work in any field that we can use to get more income. Because looking for additional work will not be easy if we don't have many skills that we can use in competition in the job market.

Actually, this point is one of the things I am working on. I'm learning more things at the moment. Because I realize that one skill alone is not enough if we want to win in today's competitive job market.

It's just that the most difficult obstacle to face is feeling lazy and always putting off work. Even in the learning process, this is the case. So one of the things I'm currently facing is feeling lazy. Sometimes in the initial period I am enthusiastic about learning new things but then I always stop halfway due to being lazy and inconsistent. I know this is my weakness. And I'm trying to fix it now.

But then I found out an easier and more fun way to learn new things. Namely by studying business opportunities in the fields we like. For example, I am a person who likes taking videos in real life. And I developed it in a direction that could produce results by learning to become a video creator on social media. Even though I'm still learning. But I'm sure someday it will pay off.

[gunhell16]

In a recession, the country's economy shrinks, and the unemployment rate increases. We should be proactive in dealing with these kinds of emergencies. In a recession, it is very important that you have a somewhat steady cash flow, limit your expenses, earn more through different means, and diversify your investments (Bitcoin, stocks, real estate, bonds, etc.). It is also necessary to have liquid investment. Emergency funds, rental income, pension funds, etc., are important in fighting difficult financial situations. Adapt to the situation quickly and have a problem-solving approach. " Where there's a will, there's a way". 
Hopefully, all of our hardships will be over in the coming months.

In our country, we are not in the stage of recession, but our average unemployment here is actually very high. And many degree holders here accept jobs that are not suitable for their completed courses in the hardships of life instead of just hanging out at home.

How can it be that if our country has entered this recession, there will be more and more people who will find ways to survive in situations like this? I think that two sources of income will probably not be enough for sure at this time. Our source of income should be at least three or more.

[kryptqnick]

My country has a pretty bad economy, and we've been through very high inflation, so generic news about recession don't affect me at all.
The consequences of a recession seem accurate in the original post, but things to do aren't all similar to what I would do. Some emergency funds are good, but if your currency is likely to experience hyperinflation, it's important to think of keeping those funds in something else (a more stable fiat or perhaps Bitcoin). As for reducing expenses, I wouldn't do that because it's that kind of attitude that makes the recession worse, actually, as people reduce expenses and stall the economy this way. On the contrary, I spend when there's something nice or useful to buy, and think of it as my contribution to trying to stimulate the economy by keeping the money circulating. As for education and additional income source, it sounds reasonable. Maintaining health is always a good thing to do, and being patient should be a part of that.

[goaldigger]

Living within means is always ideal even if there's no recession, we should start investing now and continue to make our money grow.
Live with contentment as well, and buy the things that you only need, in my country we are already poor economically and we are forced to look for alternatives on everything.
If there's a big recession again, we should be more prepared and invest wisely because not all can survive the recession also look for other source of income as much as possible.

[Kakmakr]

I think people should change with the times.... there are lots of opportunities out there, if you are innovative enough to find them. Look at the basic things that do not change and focus on that. (People need a roof over their heads / People need to eat / People need basic services like their hair being cut .....)

We can also not rely on one income, but finding two jobs ..when unemployment are on the increase... might be very difficult. So you will have to think out of the box... and create a job out of a hobby. (Example : You might like flying drones... so rent your service to people who might want to use drones)  

[Jatiluhung]

Preparation is very necessary for anyone in a country that has not yet reached the recession stage. Because when a recession actually occurs, it will not be easy even to maintain financial stability in our own lives. So I think it is very fortunate for people who are currently still in a country whose economy is still under control and has not experienced a recession. You have to make preparations now before it's too late. Because I read that some users on this forum are even in countries experiencing a recession, aka the economic crisis there has been going on for quite a long time. So now they can only struggle to survive.

When a recession has occurred, finding additional income will not be easy. Because there are many people who would do the same thing. But I think what the OP said is correct. It's just that it won't be easy to do. Everything requires determination and high motivation to do it.

[m2017]

~snip

Is there a competition for the longest post? I'm tired of reading all this. It could have been a little more concise.

No matter what the media says, you should always act on the opposite principle and should not take their words as the truth. This talk about a recession looks like a way to instill fear into people's minds. The crisis of 2008 comes to mind, when all the media around us shouted that everything would be fine with us, but in the end everyone screwed up with their forecasts. The media is empty chatter and is not at all a source of correct information. Their goal is not to convey the truth to listeners, but to attract people's attention in order to monetize it, for example, through advertising. That’s why hype topics are most often used that touch people’s emotions, and this is the best way to attract attention.

It's too late to prepare for a recession if it's already here. It was necessary to prepare for the recession long before it began, when the economy was on the rise and to accumulate financial resources. This is the same as “it’s too late to drink Borjomi when the kidneys have fallen off.”

Not everyone will survive a recession. And that's a fact. "Weak hands" are doomed. And these are the rules of the “game”.

[Broly46]

If you have family to feed, that is gonna be nightmare for you, trade stock and crypto on lunchbreak, and win the trading darwin award competition, to earn a living!
for doomday prepper, and alone guy, they have nothing to loss, so a big recession would make their already negigible remains look even more negigible.

[karabiber]

When defining recession, there are two types of recession in economic terms. Technical recession and real recession. Real recession definitions are based on NBER (National bureau of economic research) data.
Based on NBER data, for a real recession to occur, there must be a contraction in production, employment, consumption and income at the same time. A technical recession can be defined as a contraction in GDP (Gross Domestic Product) in two consecutive quarters.
Based on technical recession data, a technical recession is related to national income, while a real recession is long term and has a much larger impact. In a real recession, monetary policies are seriously
there are interventions.

The 1973 oil crisis, the 1997 Asian crisis and the 2008 crisis are examples of real recessions. In the US, the 2020 crisis was a real recession as production, employment, consumption and income contracted. As soon as historical peaks are seen after the great recession, all stocks, commodities and derivatives are exited because very large corrections take place. In this case, I think there is no need to exit commodities and derivatives because the recession continues. If you are in a recession, i would not hesitate to invest. If you are dependent on one income during this period, you should definitely look for extra new businesses that will increase your income before investing. To be prepared for everything in life, you should invest when things are going well.

[DeathAngel]

During a recession it's important to be proactive & make wise financial choices. It’d be smart to start by creating a budget to track your expenses & cut back on non essential items. Look for ways to increase your income such as taking on freelance work or a part time job. Build an emergency fund to cover unexpected expenses & prioritise paying off high interest debt. Seek out free or low cost entertainment options, cook at home instead of eating out & explore thrifty shopping alternatives.

[livingfree]

Be savvy.

Like anything you do, you need to take a look if it's wise for you to spend with that money. Of course with food, we shouldn't let ourselves starve just to save.

This is like the time that we must be financial savvy because we're on our own at these times. Lucky you are if you've got parents or a partner that will help you with what you're dealing with right now.

But for a lone survivor or just alone in your family that earns money for everyone, you really need to lessen all the unnecessary spending.

[jrrsparkles]

The traditional way is to have gold so whenever the market crashes you become richer so the same can still apply even now because gold is still stable after a lot of economic crises all over the world. Honestly, if you are a middle-class person you will get stuck no matter what unless you found a way to make more money in a short time which happens for one in a million so all the remaining will become the prey of the crisis.

There is a lot of discussion going on all around the world about how USD is gonna fall after BRICS and others but still, I don't believe it is going to happen in the near future. And also if there is a change in the presidency then we may expect drastic changes in the policies which can postpone things further.

[Dunamisx]

If we are talking about a global approach on recession, only you cannot face it, but if you're considering the way you could seek your personal interest towards not being affected by the consequences of this same recession, then you need to sit down and think on how you could live an independent economy, how you will be a producer and not a consumer and how you could offer something that will be generally acceptable to the people which will be your own source of livelihood, the more you're less dependent the more likely you're not going to be affected by the global recession because you've already prepared yourself down against such.