When the Great Recession of 2008 hit, financial expert Patrice Washington lost EVERYTHING. She was $2 million in debt and had to combine households with a relative to make ends meet! Years of perseverance, wise spending, saving, and investing, however, helped her bounce back.
Now her top tips for weathering an economic downturn are just what you need if you want to recession-proof your finances.
Tip 1: Mindset Shift
Winning financially requires a mindset shift from victimhood to empowerment. Washington says you need to prepare to play the long game mentally by practicing self-forgiveness for any money mistakes you’ve made in the past, and staying motivated by focusing on long-term goals.
Tip 2: Don’t Hide
If you owe money to a creditor, the start of a recession is the BEST time to remain in communication with them! Washington tells CNBC that since creditors want to collect as much as they can, a cooperative account holder may receive some unexpected grace in the form of an extended payment schedule and other financially advantageous terms.
Tip 3: Educate Yourself
A recent layoff may leave you with extra time on your hands. Use it to educate yourself on personal finance topics or acquire a new skill, like coding. The newfound knowledge will help you avoid risky investments in a time where you’re most vulnerable – and sharpening your skills always improves your job prospects!