There’s an aweful lot of talk about recession these days. You might have some questions coming up like; What is a recession? What impact will it have on me? and How do I prepare? Here’s a clear explanation to address some of your concerns along with a solid approach to prepare for a recession.

What is a recession? A broad decline in economic activity measured by;

  • GDP (Gross Domestic Product) down two quarters in a row 
  • spending down
  • employment down

Do the factors show we are in a recession now? 

  • No.
  • GDP is down (yes)
  • Spending is high (no)
  • Employment is high (no)

What is the impact on me? Possibility of job loss.

How do I prepare? On average, recessions last 11 months. Here’s how to prepare: 

  1. Budget both for your situation now and if income is reduced/eliminated
  2. Be prepared to leave the money you have in the market for the long run 
  3. Hold bonds in your portfolio for stability 
  4. Sell excess things you don’t need
  5. Build an extra savings cushion 
  6. Prioritize and pay your debts 
  7. Avoid/delay major purchases unless you’ve budgeted them in

Feel free to reach out if you would like a money partner to work with or to create a specialized approach for your situation. (808) 378-7808 or

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