Lots of talks lately on whether we’re about to enter a recession or not, so thought I’d throw it out to y’all and see what your thoughts are on it ;)
Personally I’m not smart enough to know whether it’s coming now or later or never, but if I had to guess I’d say it’s definitely NOT never, with my second guess being that it’s coming sooner than later.
But the real question at heart is – does it change anything?? Will it affect your personal finances and/or future goals? It surely matters to the world and all those who will go on to lose their jobs/houses/etc (definitely not wishing that on anyone!), but as it relates to you particularly – how would it change how you manage your money right now? And what moves are you making (if you are?) to adapt to this possible future?
Been thinking a lot about this lately, and honestly I don’t think I’d change much. I’d be a lot more cautious and try saving more / splurging less, but outside of that I feel like I’ve got a good handle on things, at least within my control. And job-wise it would actually be a BOON if a recession hit as it’s the one time everyone and their mother actually CARES about this $$$ stuff!! Haha…
Were you all around/old enough to remember the last recession when everyone was freaking out?? Hardly anyone had enough savings banked or enough incomes to tide them over and people were scrambling all over the place… Not a pretty sight. I’d like to think most of them have learned from it and are sitting pretty now with large savings cushions, but odds are they’ve forgotten and slipped back into their carefree ways :( Even the news outlets barely talk about saving or budgeting anymore!! It’s not sexy until it’s mayhem!
Another side effect of recessions of course is how stocks get pummeled and everything goes on fire – even though they’re literally the same exact stocks/companies and the only thing that’s changed are emotions! This is an area I lucked into myself during the last recession as it just happened to be when I finally had extra money to invest and so I took full advantage… Particularly within my 401k plan when I jacked it up to 100% contributions to get the ridiculous 100% match (!!!). If it wasn’t for my heavy investing back then I’d literally have about a half or 2/3’s less in my net worth as I do now. No joke. It’s an insane buying period, and even better if you’re brave enough to hold tight throughout it all!
Not that I’m wishing for a recession or harm to anyone that typically follows, but with all crises there’s always opportunities to take advantage of if you’re mentally and financially prepared for it… Maybe a crash is right around the corner or maybe not, but hopefully you’re at least *thinking* about it and what it means for the future of your money/lifestyle while you have control over things… History proves time and again we’re not the best when making decisions in the heat of passion! Gotta get those game plans percolating now!
My quick thoughts on things, anyways…
What’s your take on the direction of the economy?! Think a recession’s coming or couldn’t care less? What are your plans of action if one is around the corner?
No need to share with us if you don’t want to, but promise to at least marinate on it all so you don’t get caught with your pants down… Not that that also wouldn’t be fun, but that’s a topic for another day ;)
Here’s to financial security no matter what’s looming!
Jay loves talking about money, collecting coins, blasting hip-hop, and hanging out with his three beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!