Recession - What You Need to Know

What is a recession ?

-A significant decline in a country's economy

What causes a recession ?

- Increase in interest rates

-Decline in consumer confidence

- High demand for goods but low production of goods

What happens during a recession ?

- Rise of unemployment rate for companies to save $$$

-Low number of employees = Low production

- Stock market drops

- Real estate market drops

How a recession can affect you ?

- Lose your job or get a reduction in salary

- Can't afford to pay back your mortgage & other debts

- Cost of living increases as prices of goods increases due to high demand but low production

-Possible bankruptcy

How long can a recession last ?

- Can't be predicted easily...depends on economy..can be between a few months or up to even 5 years...on average it's around 1 or 2 years

How to prepare for recession?

- Prepare an emergency fund to cover at least 6 months of your expenses

- Learn to differentiate between your wants and needs

- Change your lifestyle...go 'green'

- Learn to live on less then your income

What about a global economic recession ?

- Same thing as all that's mentioned above...just that it happens to many countries globally at the same time

- Other countries are affected such as in a situation where economic giants like USA is hit by a recession...which is happening right NOW