What to do During Recession

What Recession Is

Recession is the lowest part of the economic cycle. It occurs when there is economic decline where trade and industrial activities worldwide or particular country fell to their lowest points. Some visible results are decrease in sales demand of companies and they start to lose money resulting to government intervention through stimulus packages. This normal economic cycle can be triggered by wars, pandemic, revolutions, terrorism, natural disasters or collapse of major institutions.

Effects

During this time, earnings of companies continuous to slide down; media contents are related to fears, sufferings of people and problems of companies; people lose their jobs resulting to increase in unemployment rates; some becomes homeless; many falls into depression; protests sometimes happen against the government to do something and a lot more.

Few Tips to Do During Recession

1. When you feel how the rest of the investors around the world are fearing that a particular situation would soon result to economic disaster,  that's a hint, just relax and sell your stocks. When majority are done or tired of selling down or the market is steady at the bottom and investors are gaining confidence in the market,  start buying and accumulate shareholdings then wait for sometime to reap your passive income. In one way or another, the economy would recover in a matter of months or years.

2. Minimizing expenditures. Spend only on what you need and not on what you want. Other people and companies are doing the same thing like cost optimization and cost reduction.

3. Higher unemployment are expected at this time so exert more effort on your jobs since you might be the first on the waiting list for lay-off approval by the top management or company owners.

4. Start learning new things like taking masters degree, review for new professional license or take online courses like simple Photoshop or other technical skills.

5. Plan for new potential businesses, analyze, and select the best where you are good at then start the business plan or technical research. Excel or word file or notebook with pen are the only things needed to summarize the ideas.

6. Learn new habits like cooking, backyard gardening or just simply re-arrange home furniture.

7. Family moments should be one of the best things to spend time. It maybe harder to live at this period but the comforts of relatives and friends are incomparable.

8. Realize that health/term/life insurance are of high importance as it mitigates the risk of incurring more losses for you and your love ones. 

9. One of the best to remember is that health is wealth. Eat healthy foods or have some walks or jogging to divert your minds from stress. 

10. When you feel stressed from lay-off or feel that your situation might fall into depression,  don't hesitate to call a friend or family member or visit a psychiatrist for prescriptions. In addition, practice meditation, a way to rebuild the lost inner sense of peace and strength: (I updated this blog to insert one relaxing music video below that i made 2 days ago: 

                      ( for more music subscribe to: https://www.youtube.com/user/jonathangayuchan)

Final Note

When the fear is over, the benefit is yours.