It hasn’t been an easy economic ride for Canadians over the past few years. We’ve had a lot of lockdowns, and now inflation is rising quickly – and we may be looking at a recession too!
I’ve gathered some tips on how to prepare for a recession. Not all of them will work for you, but hopefully, a few will!
Tips for getting prepared for a recession:
- Try to pick up a side hustle. There are many different ways to bring in cash – from driving for Uber to online work. Do the math and ensure you’re not operating your side hustle at a loss. You can offer to shovel snow, cut the grass, or rake leaves for neighbours for cash. This is a great way to pick up extra money with little to no overhead costs.
- Stock up on food. If you’re suddenly looking at reduced hours or income, having a freezer or pantry full of food will be helpful.
- See if you have areas you can cut back in. You don’t need to take away all of life’s little pleasures, but there may be areas you can cut back in to help build up a bit of a cash cushion. It’s nicer to choose to give something up than feel like you’ve been forced to give something up.
- Pick up some new skills. You don’t have to enroll in formal education to do this – many libraries offer free access to classes online.
- Consider what your options are if your income is cut drastically. Will you still be able to afford your mortgage or rent? If not, what are your options for housing in this situation?
- Learn about the different social services available in your area. Help is available for a reason – and there’s no shame in taking it!
- Consider options such as a heating blanket or a space heater. It’s much cheaper to run one of these than heat your whole house.
- Consider getting a line of credit or low-interest credit card. These could help tide you over if you’re out of work and low on funds.
- Plan ahead for next year! A garden is a great way to save money – you may be able to pick up equipment or seeds on sale as summer ends.
How do you prepare for economically uncertain times?
These are just some ideas on how to prepare for a recession. I’d love to know your steps to prepare for a recession!