Well, 2020 has been something that is going to go down in History. The way we live our lives, the way we run our businesses, the way to travel is NEVER going to be the same again. It breaks my heart. I remember when I was at school and I was learning about the plague and the devastation it caused, Covid-19 has been our version of it.
I never thought that the word social distancing would be part of my normal vocabulary and wearing a mask in public places would be mandatory.
Do I Need To Panic?
Since 2008 our economy has been rocky, to say the least, it had started to recover and was doing really well. Although, by studying economics and knowing how the economy works, I knew a recession was coming as too much money was being printed and the economy wasn’t allowed to hit rock bottom in 2008. Our economy goes through cycles. Since 1900, the UK has had 9 recessions, (whereas the US has had 24, that’s almost triple the amount of the UK), which for the UK averages out at a recession every 13.33 years and according to acorns.com the average economic recession lasts 15 months. The Great Recession of 2008 lasted 18 months which was the longest decline since World War II.
You’re going to live through at least 6 recessions in your life
Recessions typically happen because of decisions a country’s leader makes or it’s the economy readjusting itself. Recessions are inevitable.
According to a report on the BBC the number of people claiming unemployment benefits surges to 2.7 million between March – July. Jobs are still at risk and unemployment is rising. No one expected that the world as we knew it would take such a dramatic turn. However, it did. Some people were lucky enough not to be affected too much by the changes and for others, their whole world came crashing down and sadly, some ended up losing their jobs, their homes and some sadly, their life.
I knew, when the UK was put into a 3-month lockdown there would be consequences. My biggest fear was that the UK would head into a recession. It was bound to happen. You put EVERYTHING on hold, shit is going to hit the fan. It was never just going to pick up where it left off and be ok. That’s ignorant to think that.
So, what would happen if you lost your job tomorrow? Have you thought about what would happen? Are you prepared? You want to have a backup plan and not find yourself in a powerless situation and be ready for whatever life throws at you.
Instead of being a passenger or victim when it comes to your earnings: take control and take action … I know it isn’t as simple as it sounds …. but a few small steps a day will make a huge difference.
How To Prepare For A Recession
45 minutes a day working on a side hustle or learning a new skill over 365 days a year would equal 16,425 minutes – which works out at 273.75 hours.
Imagine how much different your life would look by simply spending 45 minutes a day on building your dream life. Let’s break it down some more, that’s only 3% of your whole day. Sounds less scary and more achievable now doesn’t it?
I have compiled a list of 12 questions to ask yourself that I believe may help trigger some new and inspiring thoughts and maybe, just maybe, encourage you to take action, so when a recession does hit, it will not become a personal crisis for you.
The answers that you write for each of the questions will be very helpful no matter what the answer. It will show you what you need to do next.
- What would happen if you were to lose your job tomorrow?
- Do you have enough money put aside? Aka an Emergency Fund.
- Do you have a backup plan? If so, what is it?
- What could you do to increase your earning potential? Ask for a raise? Change jobs?
- Could you learn a new skill to add more value?
- How many assets & liabilities do you have?
- What is your net worth?
- Do you have a budget? Click here to download our Free Annual Budget Planner.
- What positive steps could you make today that’ll help create the life you want? Is there a book you could read, or an online course you could take or even register your services on Upwork or Fiverr?
- If there was one thing in the whole world that if money wasn’t an issue you would do?
- How could you monetise that?
- Do you believe you can monetise it?
Recessions happen whether you like it or not.
Human beings are living longer than ever before. According to the United Nations, in 2019, a resident of the United Kingdom lives on average a total of 81.3 years, so you can guarantee you’re going to live through at least 6 recessions. So you want to be prepared, right?
Whether there is a recession or not, you want to guarantee you are ready for anything and everything. You want to be proactive, not reactive. Proactiveness comes from a place of strength, reactiveness comes from a place of weakness.
Do yourself a favour and create a solid plan for yourself.
Do something today, your future self will thank you for.