How to Manage With a Recession on the Way

January 27, 2008 By Debbie Dragon

Pretty much everywhere you look there are signs of a recession on the way.  You don’t have to be an economic major to know that if people and news media are discussing the possibility of a recession then there is a good chance we may come into one.

What can you do NOW to prepare for a recession?  Turns out there are a few things you can do with your job and your finances to help you better prepare in case the recession actually does hit us.

Specialize in your Career: You might think that if you can do many different things you’d be more valuable as an employee.  Turns out, just the opposite is true.  During a recession, it’s the people who have specialized knowledge who keep their jobs or are able to find new ones and the people who can do a little bit of everything that find it difficult to keep employment.  Employers tend to hold out for that perfect employee to fill the job rather than pick one who could do a little of this and a little of that.

Do a little something outstanding!  If you were to be laid off from your job right now, would you have anything noteworthy to include on your resume regarding your achievement at this job?  Make sure that you do something at your current job that will stand out on your resume because that will help you in landing your next job should you have to start looking for employment.  (A recession may cause you to lose your job, and this is a great way to get prepared for a job search you aren’t sure if you’ll have to do or not!)

Increase your savings.  Easier said then done, I know!  In times when a recession may be on the way, however, you will want to start beefing up your short term avings accounts.  This doesn’t mean to raise your contributions to your retirement funds or other inaccessible savings vehicles- instead, you want to increase money into accounts that you can access if you are laid off and need money for paying your bills or putting food on the table.  People with three to six months of living expenses saved typically have the easiest time during a recession, so now is a good time to get more money into your savings accounts.

Stock up on non-perishables.  Before a recession, you could also take the opportunity to stock up on things that don’t have expiration dates that you use all the time.  Things like paper towels, toilet paper and canned goods are easily stored.  If you have these items on hand when a recession hits, it’s less that you’ll need to be purchasing when money is tight.

Posted in careers, debt, emergencies, financial problems, jobs, saving money