GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you could read more about oureditorial guidelinesand our products and servicesreview methodology.
Personal finance influencer Michela Alloca offered five tips in a recent Instagrampost.
Heres what she said youshould do with your money during tough times.
Allocca wrote, If you arent tracking your expenses, its time to start.
Dig a bit deeper, too.
Ask yourself whether theres anything you could cut back on to save money.
For example, you might be able to cut out restaurant meals or subscription services.
As she said, During recessions, cash is king.
That leaves them in a very financially vulnerable position, especially in a recession.
If you have already hit the three-month goal, work on saving six months of living expenses.
Build New Skills
A common concern during recessions is that youll lose your job.
As money gets tighter for businesses, too, they may need to let some employees go.
Allocca recommended honing your skillset to reduce your risk of losing your job.
Specifically, she suggested focusing on transferable skills at work and developing one new skill.
So what kinds of skills should you work on?
Alternatively, you could focus on learning new hard skills relevant to your industry.
So, if your current employment doesnt work out in a recession, youll still have options.
Eliminate High-Interest Debt
Going into a recession, people also worry about their ability topay off debt.
After all, money gets more scarce, and you have less left over to put toward your balances.
Thats why Allocca recommended focusing on paying off your debt with high interest rates as soon as possible.
In most cases, thats probably credit card debt, auto loans or personal loans.
Excluding mortgages, the average consumer debt balance is over $23,000.
You dont know what kind of financial situation youll be in a year or two from now.
Given the worrying signs of a recession, its best to wait, according to Allocca.
She also suggested avoiding frivolous purchases whenever you could.
More From GOBankingRates
Share This Article:
