There are speculations in the press that we might be heading for a world recession again. Whether or not this is true, it is sensible to recession proof yourself to get ready for it. If it doesn’t happen, you have lost nothing, but if it does happen, you will be well prepared.
Pay off debts
It is a wise idea to make sure that you pay off any debts that you have. This will mean that you will not have to pay monthly interest payments and will not have repayments to make either. It is hard to predict what interest rates may do in the future, but if they go up then this could make those payments higher. It could be a significant increase as well as it will only take a very small increase in interest rates to double the interest you have to pay. If you have no debt repayments to pay you will also have more money to spend on other things or go towards bills that may increase.
Get some savings
It is always good to have some savings to fall back on. Whether they are to cover increasing prices, higher or bills or help you out of you lose your job or take a salary cut. A recession could have many unpredictable effects and so it is well worth having some money behind you just in case. If you do not need to spend it, then you will have a nice chunk of money to use for anything you want.
Consider moving savings and investments to safe or protected places
A recession can have effects on banks. We have already seen in the past many big banks collapsing and people losing money. It could be wise to therefore make sure that any savings or investments you have are in safe places. Some countries will have their government cover losses up to a certain amount, if this does happen, so it is wise to make sure that any funds you choose are covered by this. Another thing some people do is to buy government bonds or gilts which are seen as a really safe investment.
Get your CV/Resume up to date
It is a really good idea to make sure that you CV or resume is up to date. In the unfortunate event of you losing your job, you will need to look for something else. If you have your details all ready then this will speed up the process. You could even start looking at what jobs are around and send your CV into some job agencies just in case.
Consider income protection insurance
It can be worth considering protecting yourself if you think that you might lose your job. An income protection insurance could pay out for mortgage payments or other loan repayments should this happen and mean that you will not default on the loan. If you have some big payments and your terms are not flexible then this could be well worth considering.