Are You Afraid Of A Recession
May 18th, 2010 | 
Author: Are You Afraid Of A Recession
Are you afraid of a recession? You should be because a slowdown in the economy affects a lot of things such as employment rate the price of goods and services and your ability to borrow money from the bank.
Since you dont know when this can happen experts advise consumers to always have an emergency fund. While some decide to invest it in stocks and bonds others have decided to put this in the bank. When Lehman brothers filed for bankruptcy this made others believe that their banks could also go under so some people have decided to keep their cash under their mattress.
The definition of a recession simply states that there is a negative growth for two consecutive quarters. Since this one is different from what the country has ever faced people are advised to take drastic steps to survive the financial crisis.
One thing you have to do is to cut down on your personal expenses and only buy the essentials because no one knows when the recession will end or even if the bailout that was signed into law will work. The same goes if you have a business because monitoring your finances is the only way to make sure you are financially stable.
As a result of the slow down more people will be put out of work and if you happen to be one of the unlucky onesof which I’am then you should take this time to assess who you are and then shift to another career. Some may take the opportunity to go to graduate school because it is not enough these days to just have a graduate degree.
If you still have a job but need more money to put on the table consider getting a second job.
You can also try scrounging around for cash by selling some old stuff or by trading in your car if what you have at home is an SUV because this vehicle consumes more gas than compact cars.
But a recession is not always bad. There is a silver lining that some of us fail to notice and you can take advantage of it.
For instance whenever the country is in recession the federal government announces a cut in interest rates allowing you to borrow money at a lower interest rate. You also get tax rebate from the IRS.
This is the best time to buy stocks bonds and property if you have excess cash lying around. If you choose to go on a shopping spree make sure that these investments will pay off in the long term so you may double or even triple what you initially shelled out.
Another benefit is that you may also get an increase in your retirement account limits.
So should you be afraid of a recession? It depends but one thing for certain is that it will affect you one way or the other regardless if the circumstances back then are different to what they are right now. Just like other things in life there is always an upside and downside to it so dont panic. Take a step back and assess the situation because by being prepared and looking at it objectively you will be able to survive it just like how you have done in the past.
NOVYAR
About the writer: I’am just your average 57yr.old american citizenwho has spent my life working hard and long hours.I was born in Decatur Al. now am living in Saint Louis Mo for the past 44yrs.Worked 35yrs in manufacturing and spent several yrs driving over the roadI’am between jobs once again in my life.The world is a different place than when I grew up.But a change is in the making.Have also been doing a lot of research in real estate and investing or saling anything I can profit from even on the Internetit’s not easy you just have to stay at it.Trying to learn this Internet marketing business and I think that going to take some time learning all of the ins and outsdoes and don’tsyet I know the Lord will get me through this somehow and somewaybecause GOD IS LOVE!Well I’m back writing a little more about myself of whatever comes to my mind.I use to write why I was in school but that was a very long time agoand now being between jobs it gives me a little more time to think of what I would like to say.Normally I’d write about whatever came to mind or what I .was thinking of at the moment.So many thoughs comes nowaday setting around all day with nothing else to do but think.I’ll probably add a little more later.
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