It’s hard to ever get a straight answer about whether or not we’re in a recession.
It’s often accompanied by rising unemployment rates, falling consumer spending, and a decline in industrial production.
According to this definition, we are not technically in a recession.
So, how comeso many of us still feel like we’re financially struggling?
The answer may be a so-called “silent recession.”
Increased debt: Individuals and families mayrely more heavily on creditto maintain their standard of living.
Reduced savings: People may find it challenging tosave for emergenciesor long-term goals.
Are we in a silent recession?
There’s undoubtedly a disconnect between positive economic indicators and the financial struggles of many Americans.
While some sectors and individuals may be thriving, others may be facing significant financial pressures.
Here are my tips togetting this fund off the ground.
Diversify income streams: Considerdeveloping multiple sources of incometo reduce reliance on a single job.
Reduce debt: Identify your highest-rate debts andcreate a plan to tackle them aggressivelybefore they balloon out of control.
Live below your means: Or, at least,avoid lifestyle creep.
During a recession, your means of increasing your incomeraises, promotions, and side hustleswill be limited.
Stay informed: Recessions make everything uncertain.
Stay sane bystaying on top of money news, and adjust your financial strategy accordingly.
Eye-catching headlines will never be an accurate snapshot of your personal financial picture.
