How To Survive A Recession
for Black Families
With the way the economy has been going and inflation on the rise, we might be looking at a coming recession. A recession is a period of decline in the economy that is accompanied by a rise in unemployment. When prices balloon with inflation, consumers spend less of their money to buy products. Companies, then, don’t make as much merchandise as demand falls. Without demand, there is no need to manufacture supply, which means employees are laid off as they are no longer needed. How might you and your family survive if a recession should hit?
Prepare to be Laid Off
No one wants to hear they might lose their job, but the fact of the matter is you should prepare anyway in the event unemployment finds its way to you. Save as much money as you can, cut as many corners as you can, invest as much as you dare, and try to diversify your income stream. Don’t rely on one source of income but broaden your horizons into freelance work, learn a new skill that’s profitable, or offer a service with a side hustle. Do this now so that you can save money, but also so that you’re not caught off guard and need to establish yourself after you’ve already lost your job.
Cut Costs
This one’s a no-brainer, but you’ll want to cut costs as much as possible. Go through your budget and see what you can cut out. Pile on the blankets instead of turning up the heat. Make coffee at home rather than going to the coffee shop. Make food at home, drive less to conserve your gas, and save what you don’t need to spend. Can you live without cable? Is it time to get rid of the land line phone? Can you handle riding public transit? When all the extras have been cut, the next thing to look at is the bills you pay and negotiate with yourself what you can and cannot live without.
Some Practical Things
Work on your resume. If you’re prepared to be laid off, you should also have your resume ready to apply elsewhere. Make sure it’s current with your recent work history as well as your current home address, email address, and phone number.
Make sure you network. If you’re on LinkedIn, reach out to your colleagues, bosses, and anyone you can think of that might be able to help you should you find yourself in a tight spot. Networking now will cut back on the desperate dash to network once you’ve been let go from your job.
Save your money. Whatever you save today might be what you have to live on tomorrow. Keep the worst case scenario in the forefront of your mind and save accordingly. It might start to feel lean around your house, but you’ll thank yourself one day for building an emergency fund for your family while the money is flowing.
Keep your eyes open. If your company is laying people off left and right, don’t wait for your turn on the chopping block. Now is the time to look around and keep your ear to the ground for any opportunity that might come your way. Some industries aren’t hit as hard by a recession than others, and these include the healthcare industry, government, utilities, and food, just to name a few. If you look for jobs within “recession-proof” industries, you might be able to give yourself and your family a good chance at surviving hard times.
To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.
