Recession? How to face It?

[BRINIRHA]

...

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

Not much different from yesterday's Covid pandemic, the recession has weakened the purchasing power of people around the world and caused great concern. There are still many people who don't realize that almost all countries in the world are experiencing a recession which has weakened people's financial capabilities. I am grateful to get good reading almost every day on this forum, from the many posts there are, managing finances well is something that many posters recommend. Recession comes unexpectedly, so preparing an emergency expenditure - income - budget must be started as early as possible.

Unfortunately, currently it seems that not many people are preparing themselves for a recession. So the economic crisis is clearly becoming more visible around me. Even the currency in my country continues to weaken compared to the dollar. So now, without realizing it, all prices are gradually rising again. And currently more and more companies are closing and making many people lose their jobs. The recession has really had a big impact and it is clearly visible now. People are starting to complain that life is increasingly difficult nowadays. Even loan applications are the most sought after today. The result is that many people are unable to meet their daily living expenses. But for those who have prepared from the start, they can be said to be very lucky. Because when the Recession happened they were ready to face it. Different from people who haven't had time to make preparations. They're going to have a really hard time right now.

[1714972608]

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[boyptc]

It cannot be denied that inflation is something that worries everyone, especially if you are a businessman because the continuous increase in prices of goods due to inflation means that many people's finances cannot be controlled, thus having an impact on future financial balance. And this can happen in every country.

It is happening in every country but for a very few, they're able to slow it down but they can't escape inflation.

I also agree that one way to deal with inflation that will always be recommended is investing in bitcoin. Because, investing in bitcoin will help protect your finances from the impact of inflation. Apart from not being wasteful and having to look for additional work, you also have to avoid debt. Moreover, if you use debt only to fulfill your lifestyle and are consumerist in nature, it is actually less useful.

Investing overall is a good way to fight inflation. And investing in Bitcoin is just one of the best choice as there have been a lot of choices that everyone can make if ever you're fortunate to have money to invest.

It's a hedge against inflation and others need to know that too.

[pawel7777]

It is happening in every country but for a very few, they're able to slow it down but they can't escape inflation.
(...)

Actually, most of the countries (at least the Western ones) have been able to reduce the rate of inflation with increased interest rates. The problem is that increasing interest rates have a negative effect on the economy and can lead to many undesirable things like e.g high unemployment. So if not done carefully, it's just like replacing one problem with another.
That's why, in the past, we'd often see that recessions actually came in pair with deflation.

[GbitG]

I also agree that one way to deal with inflation that will always be recommended is investing in bitcoin. Because, investing in bitcoin will help protect your finances from the impact of inflation. Apart from not being wasteful and having to look for additional work, you also have to avoid debt. Moreover, if you use debt only to fulfill your lifestyle and are consumerist in nature, it is actually less useful.

It is true that Bitcoin is an excellent investment. But what you said is that you should always recommend Bitcoin investments to deal with inflation. So do you have any proof that Bitcoin can end inflation or that it can help reduce the impact of inflation on finance? If you have any arguments, then give them to us so that we will also be aware. But it is not possible, with the excuse that you have zero tolerance, that Bitcoin can end inflation.

While I can tell you why Bitcoin cannot eliminate or improve inflation, it has a volatile nature, and there is no evidence that its market condition will remain the same tomorrow, which means price movement. It will be the same tomorrow. To prevent inflation, you need a consistent method by which interest rates are raised by reducing the supply of money in the economy, and inflation can be reduced.

It is clear that Bitcoin has high potential to prevent inflation because of its fixed supply and decentralized nature. And this is the thing that can keep Bitcoin as a hope for an inflation hedge, but Bitcoin, despite so many advantages, also has a weakness, and that is its volatile nature, due to which Bitcoin is classified as an inflation hedge or financial status. They hesitate to use it because nobody has tried Bitcoin so far, and no country is ready to try it because there are risks in something based on volatility, and economic status is a serious matter with a small risk. It will also put the financial career of a country at stake. I hope you understand my point.

[shinratensei_]

It cannot be denied that inflation is something that worries everyone, especially if you are a businessman because the continuous increase in prices of goods due to inflation means that many people's finances cannot be controlled, thus having an impact on future financial balance. And this can happen in every country.

It is happening in every country but for a very few, they're able to slow it down but they can't escape inflation.

I also agree that one way to deal with inflation that will always be recommended is investing in bitcoin. Because, investing in bitcoin will help protect your finances from the impact of inflation. Apart from not being wasteful and having to look for additional work, you also have to avoid debt. Moreover, if you use debt only to fulfill your lifestyle and are consumerist in nature, it is actually less useful.

Investing overall is a good way to fight inflation. And investing in Bitcoin is just one of the best choice as there have been a lot of choices that everyone can make if ever you're fortunate to have money to invest.

It's a hedge against inflation and others need to know that too.

overall whatever investment there is so long its return rate more than the inflation incurred, its fine, but with bitcoin, we get additional benefit of growing our capital into another level.
I would say that, cryptocurrencies so far is best investment for fighting against inflation, even some random alts could gain 30% increase within short amount of time.
but requires adequate skill and sufficient knowledge to do the investment.
from my observation, not everyone cut it to become investor in cryptocurrency, even more so those that don't really have the patience, therefore its best to test the water first.
seeing if its truly effective way fighting inflation.

[MarjorieZimmermanGinger]

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.

Recessions have occurred long before we were born and this happens every time the global economy changes and several other causes. Inflation also occurs due to an erratic increase in the price of goods and people's purchasing power weakens due to a lack of balance. Both are natural phenomena that often occur, but with varying levels of severity and what people need to do is follow several steps of advice from experts and live as frugal a life as possible and not wastefully live in these conditions.

We have gone through several critical events caused by recession and inflation and outwardly we have come through well, despite the complications and difficulties. For example, when Covid-19 happened and almost everyone experienced big problems at that time and in the end we were able to get through it on our own with some advice, our own way and assistance from the government.

[boyptc]

It is happening in every country but for a very few, they're able to slow it down but they can't escape inflation.
(...)

Actually, most of the countries (at least the Western ones) have been able to reduce the rate of inflation with increased interest rates. The problem is that increasing interest rates have a negative effect on the economy and can lead to many undesirable things like e.g high unemployment. So if not done carefully, it's just like replacing one problem with another.
That's why, in the past, we'd often see that recessions actually came in pair with deflation.

Every possible solution that a country will do, there's always an opposite reaction. It may not be entirely to the economy but to the people. So whatever a government does to slow down or contain the inflation, they'll still have hard time in removing it all along but reducing it is like the goal of most of them.

It's a very crucial thing to be done by most of them and I agree to you, they need to do it carefully.

overall whatever investment there is so long its return rate more than the inflation incurred, its fine, but with bitcoin, we get additional benefit of growing our capital into another level.
I would say that, cryptocurrencies so far is best investment for fighting against inflation, even some random alts could gain 30% increase within short amount of time.
but requires adequate skill and sufficient knowledge to do the investment.
from my observation, not everyone cut it to become investor in cryptocurrency, even more so those that don't really have the patience, therefore its best to test the water first.
seeing if its truly effective way fighting inflation.

Yeah, it shouldn't just be an investment that will gain them profits but they need to consider that it should be way above the inflation rate.

Your money is still not going to be valuable if it's on an investment and the increase is way below the inflation rate.

[CageMabok]

Recessions have occurred long before we were born and this happens every time the global economy changes and several other causes. Inflation also occurs due to an erratic increase in the price of goods and people's purchasing power weakens due to a lack of balance. Both are natural phenomena that often occur, but with varying levels of severity and what people need to do is follow several steps of advice from experts and live as frugal a life as possible and not wastefully live in these conditions.

This is a phenomenon that often occurs in the economy, not a natural phenomenon as you say because recession and inflation arise through economic changes that are not controlled by the parties involved so that it can cause bad things to happen within the economic scope, such as in the example of recession and inflation that has been felt by everyone throughout the world. And the good option is to continue to work hard and save money because only with this can everyone fight recession and inflation through their own lives.

We have gone through several critical events caused by recession and inflation and outwardly we have come through well, despite the complications and difficulties. For example, when Covid-19 happened and almost everyone experienced big problems at that time and in the end we were able to get through it on our own with some advice, our own way and assistance from the government.

Things like recession and inflation actually cannot be fought by relying on ourselves alone, so to overcome this and fight it in a better way, of course every citizen still needs help from the government and intervention from other related parties because This is related to the global economy so there needs to be broader handling from all parties in order to get through this like we got through the pandemic disaster that has come to everyone throughout the world.

[Gaza13]

The effects of a recession are so bad that it's important to have an emergency fund and multiple sources of strong income within your means. Individuals need to think long term when it comes to investing and diversify holdings as well as be realistic about how much risk they can handle. So there is no danger of the economy collapsing due to various crises including recession, even if it passes through difficult times in the social and economic field. To help prepare for job loss or other financial setbacks aim to build an emergency fund that covers three to six months of living expenses.

The threat of a recession makes some people panic, because this recession is associated with various terrible things such as declining business, increasing unemployment levels and besides that, other impacts are certain that basic needs will increase, and people's purchasing power will decrease. And other negative impacts, yes, in facing a recession, we have to prepare ourselves, the main thing is that we prepare cash, cash is king when facing a crisis. Just maintain assets that are ready to be liquid, liquid assets are assets that are easy or easy to sell, namely like gold. Yes, it's true what you said, another solution is to increase your business or other income as your own emergency fund. Before mass layoffs occur, we need to save or manage our money well.

[BRINIRHA]

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.

Recessions have occurred long before we were born and this happens every time the global economy changes and several other causes. Inflation also occurs due to an erratic increase in the price of goods and people's purchasing power weakens due to a lack of balance. Both are natural phenomena that often occur, but with varying levels of severity and what people need to do is follow several steps of advice from experts and live as frugal a life as possible and not wastefully live in these conditions.

We have gone through several critical events caused by recession and inflation and outwardly we have come through well, despite the complications and difficulties. For example, when Covid-19 happened and almost everyone experienced big problems at that time and in the end we were able to get through it on our own with some advice, our own way and assistance from the government.

Recessions have happened a lot in the past and we may have experienced them several times in our lives. In this way, we should be able to learn from experiences and from events that have occurred in the past. This learning is needed to enable us to better prepare ourselves every time a recession occurs. And experts also do this, they learn from history and experience so that theories are formed and used as scientific studies which are also taught in economics colleges and the like.

A recession will not be so scary if we are prepared to face it. And in essence, we must have good financial management, and have a stable and sufficient source of income. And we should always have backup plans like emergency funds and such.

[South Park]

Recessions have happened a lot in the past and we may have experienced them several times in our lives. In this way, we should be able to learn from experiences and from events that have occurred in the past. This learning is needed to enable us to better prepare ourselves every time a recession occurs. And experts also do this, they learn from history and experience so that theories are formed and used as scientific studies which are also taught in economics colleges and the like.

A recession will not be so scary if we are prepared to face it. And in essence, we must have good financial management, and have a stable and sufficient source of income. And we should always have backup plans like emergency funds and such.

True, but what surprises me the most is that people act as if it is completely impossible for such a thing to occur again, because if you were to ask people about what they are doing to protect themselves in the case of a recession they will look at you with an incredulous face as if you asked them something that could only happen in movies, and then when it does happen those people are taken by surprise by such event and have no idea at all how to react to it.

[pawel7777]

True, but what surprises me the most is that people act as if it is completely impossible for such a thing to occur again, because if you were to ask people about what they are doing to protect themselves in the case of a recession they will look at you with an incredulous face as if you asked them something that could only happen in movies, and then when it does happen those people are taken by surprise by such event and have no idea at all how to react to it.

The reason people are not preparing themselves for recessions is that there's not much they can do really. If you look at the average person, they don't hold any massive investments so are not really bothered with the markets' performance. All they can do is hope they won't lose their job.
Another thing is, that the word "recession" is used very loosely. In a situation when even experts can't quite agree on whether we are or aren't in a recession - the recession doesn't seem so scary.
Whatever happens, things are not very likely to get so severe as it was the case in the past, i.e. during the great depression, when people genuinely struggled to feed their families.

[BRINIRHA]

Recessions have happened a lot in the past and we may have experienced them several times in our lives. In this way, we should be able to learn from experiences and from events that have occurred in the past. This learning is needed to enable us to better prepare ourselves every time a recession occurs. And experts also do this, they learn from history and experience so that theories are formed and used as scientific studies which are also taught in economics colleges and the like.

A recession will not be so scary if we are prepared to face it. And in essence, we must have good financial management, and have a stable and sufficient source of income. And we should always have backup plans like emergency funds and such.

True, but what surprises me the most is that people act as if it is completely impossible for such a thing to occur again, because if you were to ask people about what they are doing to protect themselves in the case of a recession they will look at you with an incredulous face as if you asked them something that could only happen in movies, and then when it does happen those people are taken by surprise by such event and have no idea at all how to react to it.

Because for some people they don't even know the term recession. They know everything that disrupts the economy and an economic downturn is an economic crisis. They don't even know the term inflation. They experienced it but most of them didn't learn it and didn't prepare themselves if economic difficulties occurred again. Yes, it's true that it seems like they really think that the recession that happened might not happen again. Those who are careless are those who will have difficulties because they do not have sufficient preparation. That's why we see many rich people always able to maintain their wealth even though the economic crisis occurs and inflation and recession also have an impact on them. Because they already had thorough preparations long before the economic crisis occurred again. Even if some companies close their business, it doesn't mean they are completely bankrupt. In fact, the brand only reduces the burden. Because sometimes conditions are difficult and if we want to survive then there are times when we have to take off a little of the burden.

That is why it is important for us to always learn from everything that has happened in human history. Not only on what we have experienced but also on things that we have not even experienced but that generations before us have experienced. Learning from history can make us better prepared to face the future.

[viananda2525]

True, but what surprises me the most is that people act as if it is completely impossible for such a thing to occur again, because if you were to ask people about what they are doing to protect themselves in the case of a recession they will look at you with an incredulous face as if you asked them something that could only happen in movies, and then when it does happen those people are taken by surprise by such event and have no idea at all how to react to it.

The reason people are not preparing themselves for recessions is that there's not much they can do really. If you look at the average person, they don't hold any massive investments so are not really bothered with the markets' performance. All they can do is hope they won't lose their job.
Another thing is, that the word "recession" is used very loosely. In a situation when even experts can't quite agree on whether we are or aren't in a recession - the recession doesn't seem so scary.
Whatever happens, things are not very likely to get so severe as it was the case in the past, i.e. during the great depression, when people genuinely struggled to feed their families.

A recession certainly has a very bad impact on the economy and affects the order of human life. Even though sometimes a recession is just considered normal by some types of people, the risks are really very dangerous. Recession is definitely avoided by business people and the country is also very worried about it.

I actually don't really agree if there are people who say that recessions are a common thing and often happen repeatedly and can be overcome without any significant impact. But if we look at it as a whole, everyone should be sensitive to such situations and prepare themselves well so that the effects of the recession are not able to hamper the economy to the smallest level.

[pawel7777]

A recession certainly has a very bad impact on the economy and affects the order of human life. Even though sometimes a recession is just considered normal by some types of people, the risks are really very dangerous. Recession is definitely avoided by business people and the country is also very worried about it.

I actually don't really agree if there are people who say that recessions are a common thing and often happen repeatedly and can be overcome without any significant impact. But if we look at it as a whole, everyone should be sensitive to such situations and prepare themselves well so that the effects of the recession are not able to hamper the economy to the smallest level.

The problem is, is not entirely clear what the "recession" means. It has been used so loosely (especially in recent times) that it can have different meaning to different people. We've seen so called experts and journalists referring to recession in situation when economic growth has slowed down, but still was positive.
And I don't understand why so many people believe that constant, uninterrupted growth is somehow a natural situation and any deviation from that is a tragedy. To me, it's kind of expected to see some periods of both, ups and downs.
And again, the mass outcry and comparing recession to some sort of cataclysm is usually vastly exaggerated. I've seen the effects of 2008 recession but I don't know anyone who would be affected by it in any significant, long-term way.

[retreat]

What is most needed during a recession is a stable cash flow. A person must be able to ensure that they have a stable cash flow that can meet their needs and to save/invest in shares or other investment instruments. Without a stable cash flow, it might be quite difficult for someone to survive this recession, because the prices of goods will tend to fluctuate and a person must be able to meet their primary needs first.
And then cutting spending on things that are not important is necessary and allocating the money to things that are more necessary or saving it.

[Juse14]

What is most needed during a recession is a stable cash flow. A person must be able to ensure that they have a stable cash flow that can meet their needs and to save/invest in shares or other investment instruments. Without a stable cash flow, it might be quite difficult for someone to survive this recession, because the prices of goods will tend to fluctuate and a person must be able to meet their primary needs first.
And then cutting spending on things that are not important is necessary and allocating the money to things that are more necessary or saving it.

you are right about that and as much as possible we have to manage our expenses and income well, we can make expenses because after all we have to fulfill primary, secondary and tertiary needs but what we need to pay attention to is to make sure that we buy things that are really needed and not just a desire.

investment is one way to deal with a recession and is known as an effective way to increase income, but in this case we are required to be more careful in determining where we will invest so that we can guarantee that the investment can still provide profits amidst the threat of recession and Of course, to be able to do this you need to be wiser and smarter.
and one more thing, as much as possible we must avoid long-term debt because clearly this is very risky and will cause us to be in debt in the future because when a recession occurs, interest rates will increase, causing the value of our debt to increase.

[puloweh555]

What is most needed during a recession is a stable cash flow. A person must be able to ensure that they have a stable cash flow that can meet their needs and to save/invest in shares or other investment instruments. Without a stable cash flow, it might be quite difficult for someone to survive this recession, because the prices of goods will tend to fluctuate and a person must be able to meet their primary needs first.
And then cutting spending on things that are not important is necessary and allocating the money to things that are more necessary or saving it.

Yes, it is important to face a recession to be able to stabilize our cash flow, because without this everything will fall apart. Maybe this is a good way to stabilize our cash so that we can manage our finances when an economic recession occurs. I learned this from my experience when the Covid virus occurred several years ago.

1. Increase emergency funds. It's best to start recording expenses and income.

2. Increase investment. If we haven't started investing, it's best to invest immediately, the easiest investment is gold because it's easy to disburse when there's a sudden need, and don't forget if you have extra money to invest in bitcoin.

3. Consider your career because the career we are focusing on must know, this could be long term or only temporary. For example, in a temporary career we can look for additional income.

4. If you currently have debt, it's a good idea to note down how much debt needs to be paid. Pay in installments. and live frugally and lastly, don't get into debt again.

5. Don't let expenses be greater than income. So that our income is greater, continue to increase creativity... Continue to learn new things, have additional income so that you can increase your income better, and still live frugally

Hopefully the finances we currently have remain stable.

[Raflesia]

Unfortunately, currently it seems that not many people are preparing themselves for a recession. So the economic crisis is clearly becoming more visible around me. Even the currency in my country continues to weaken compared to the dollar. So now, without realizing it, all prices are gradually rising again. And currently more and more companies are closing and making many people lose their jobs. The recession has really had a big impact and it is clearly visible now. People are starting to complain that life is increasingly difficult nowadays. Even loan applications are the most sought after today. The result is that many people are unable to meet their daily living expenses. But for those who have prepared from the start, they can be said to be very lucky. Because when the Recession happened they were ready to face it. Different from people who haven't had time to make preparations. They're going to have a really hard time right now.

I think rather than saying they didn't prepare well then I would probably say that they were confused about how to prepare for it.
Indeed for some people it will be easy but for some especially for those who are poor then they will not be able to do that other than being desperate to accept without preparation. It is not that they do not want to prepare, it is just that they are confused about what they should prepare because after all, before the recession they already had difficulties with their economy so that when the recession occurred they realized that the conditions would definitely be worse but on the other hand they also could not do anything other than accept and face it.

[dunfida]

Recessions have happened a lot in the past and we may have experienced them several times in our lives. In this way, we should be able to learn from experiences and from events that have occurred in the past. This learning is needed to enable us to better prepare ourselves every time a recession occurs. And experts also do this, they learn from history and experience so that theories are formed and used as scientific studies which are also taught in economics colleges and the like.

A recession will not be so scary if we are prepared to face it. And in essence, we must have good financial management, and have a stable and sufficient source of income. And we should always have backup plans like emergency funds and such.

True, but what surprises me the most is that people act as if it is completely impossible for such a thing to occur again, because if you were to ask people about what they are doing to protect themselves in the case of a recession they will look at you with an incredulous face as if you asked them something that could only happen in movies, and then when it does happen those people are taken by surprise by such event and have no idea at all how to react to it.

Because for some people they don't even know the term recession. They know everything that disrupts the economy and an economic downturn is an economic crisis. They don't even know the term inflation. They experienced it but most of them didn't learn it and didn't prepare themselves if economic difficulties occurred again. Yes, it's true that it seems like they really think that the recession that happened might not happen again. Those who are careless are those who will have difficulties because they do not have sufficient preparation. That's why we see many rich people always able to maintain their wealth even though the economic crisis occurs and inflation and recession also have an impact on them. Because they already had thorough preparations long before the economic crisis occurred again. Even if some companies close their business, it doesn't mean they are completely bankrupt. In fact, the brand only reduces the burden. Because sometimes conditions are difficult and if we want to survive then there are times when we have to take off a little of the burden.

That is why it is important for us to always learn from everything that has happened in human history. Not only on what we have experienced but also on things that we have not even experienced but that generations before us have experienced. Learning from history can make us better prepared to face the future.

We should really be that indeed smart and wise when it comes to this because if we arent really that prepared then we would definitely be experiencing the bitter things specially if we do speak about recession or inflation.
Yes, its true on which rich people cant really be that easily affected when it comes to this scenario which they could really be that easily be able to adjust or survive considering that they do have other income
or stream of money earning things on which its really that supporting them on the time that it would really be that happening. This is why it would really be always that wise to do on making
things to be prepared rather than caught up yourself off guard.

Being wise and being mindful is the best approach that you could really be having. Facing it out might not be simple as it sounds but doesnt mean that it would be impossible on doing so.
There are really just that people who are really that wise on preparing things on whats ahead.