Some tips facing a recession

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1 year ago

Global economic turbulence which globally experienced inflation to the point of stagflation made various parties tend to prepare themselves for the possibility of facing a recession. Although it is still not possible to calculate the strength of the global recession and its impact on the economic situation in 2023, many economists say that there is a possibility of a large-scale recession in a number of countries around the world.

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As we know in a condition where the reference interest increases, the cost of capital and credit interest that will be borne by the business will also rise. The next impact will usually be followed by the weakening of the local currency against foreign currencies. On the side of a country that has a lot of loans in foreign currency, both government and private, the amount of local currency that will be issued to repay loans in a foreign currency will also increase. In conditions that do not improve, the combination of a series of skyrocketing product prices, rising inflation, rising credit reference rates, and the weakening of the local currency can eventually create a risk of a possible global economic crisis.

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So in preparation for these conditions, there are several ways to be prepared if these conditions occur including:

1. Minimize expenses.

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Our expenses usually intersect with what we normally do. Such as lifestyle, diet, or travel. In a bad economic condition, it is better to pay more attention to the main or more basic expenditures. Such as expenses that are not important outside the basic expenses should be avoided. Savings tend to be prioritized on each side of spending, which is more important and which is not. The impact of saving even this that can be felt is having more time efficiency, both for family, and friends and time for yourself.

2. Be alert and aware of investing.

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Be careful not only in bad economic conditions but even in good economic conditions when discussing investment issues must be careful. However, because the conditions are bad, it is better to increase vigilance, where if you get a loss or other problems such as time problems in urgent conditions do not add new problems later. If you do have excess funds, remain vigilant about choosing investments that are truly safe and provide convenience in the need to release urgent problems.

3. Learn new things.

Image by Gerd Altmann from Pixabay 

Learning new things means getting new knowledge and new opportunities to be able to generate income. Not fixated on a habit that is commonplace or can be done, so that our opportunities to compete are clearer and certain of new things that we will master. In addition, another advantage is being able to expand the problem of friendship with someone later.

4. Make extra income

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Looking for additional income is one solution that can be used in economic conditions that are not getting better. Where we can take advantage of hobbies to produce something so that it becomes a new business that generates additional income beyond the main income. Especially with the current state of moldy e-commerce, it's easier for us to make sales online.

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Although all of that may not necessarily happen, by preparing steps to deal with these conditions, at least we hope to get through it easily. However, we hope and pray at least that we always send out hope that this global economic recession does not happen and all the things that are feared can be avoided. The hope is that the global economy will improve by 2023.

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As commodity prices rise, a large part of the money is spent on food investment. And because the amount of expenses is more than our income, we are getting into debt without being able to settle.

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