Here is a list of 10 reminders to help you review your recession readiness:
1. Medical Insurance Premiums
Ensure the premiums are up to date and “giro it” if possible. Losing your job is bad. Losing your job and your health is worse. Losing your job and your health at the same time with your medical insurance lapsed is bad beyond words.
2. Discretionary Expenses
“Earth provides everything to satisfy a man’s needs, but not every man’s greed” says Gandhi. Time to do a greed check and “ceiling the discretionary”.
3. Year End Bonus
Bonus, as the name suggests, is an extra. During good times, they are entitlements. During bad times, they are buffers. Think winter all summer and commit to save this year’s extras and entitlements.
4. Rainy Day
Liquidity is the oxygen of every financial plan. Prepare a bit more oxygen canisters when the going is expected to get tough. No matter how fit and tough you are, you still can’t run a marathon with no oxygen.
5. Business Cash Flow
If you are running a business, cash flow is king. Rule number in any chess game, protect the king. Which brings me to the next point…
6. Call Back Loans
If you can’t do so now, you sure won’t be able to do later if a recession starts. Don’t wait for stale loans to turn bad before trying to do salvage something. You will be lucky to get back anything.
7. Delay the Big Ticket
If you are growing and progressing well in life, there is always the next car to upgrade to and the next house to own. It’s worth reminding ourselves that sometimes, the best value for big ticket purchases can be found during a recession, not when times are good.
8. Review Your Passion
Always wanted to start a business? It’s time to reconnect with what really inspires you in case there is an opportunity to start a business by yourself, for yourself.
9. Reconnect the Relationships
One of the most effective way to find employment is to be referred. Touch base with old relationships, especially those who know how capable you are. However, don’t fake anything, keep in touch because you really care about how other people are doing.
10. Upgrade the Software
Go with the flow, use the Skills Future credits wisely and learn things that will help you to be more employable and put more strings to your bow.