It is hard to say when the next recession will hit, but at some point in the future you can plan on it happening. History has a way of repeating itself. Speculation in many camps is that it will happen right after our presidential election regardless of which candidate wins. I happen to believe this a real possibility.
While I am not an economic forecaster I do know that recessions happen and usually after a big event in this country, presidential elections being one of them. I also feel that the best way to prepare for a recession, no matter what the circumstances that cause it, is to be well prepared ahead of time.
I have an emergency fund and I add to it on a fairly regular basis.
I keep my bills paid ahead of their due dates. In the case of an emergency or job loss this would give me extra time before the next ones are due.
I'm working very hard to eliminate my debt. It won't be much longer until that is all gone, thankfully. After that I'll be working very hard not to go back into debt.
Job loss can happen and sometimes unexpectedly. My resume is always kept up to date and I'm prepared to get out there immediately and start hunting. I'm also not too proud to take a job scrubbing toilets or flipping burgers if need be.
I know my options. I know where to go, who to turn to and what is available to me should the worse happen and I find myself in desperate need despite my best efforts.
Our home is our safe haven. It has a sound roof and foundation and is properly insulated. We keep it well maintained and buttoned up for winter so our heating and cooling costs are relatively low.
Our home is small and very affordable. It is large enough for us to be comfortable and well housed but not too big at 990 square feet, give or take. It is also economical as far as the mortgage and utilities are concerned. A full time job at McDonalds, if need be, would easily cover our house payment and utilities.
Inside we have enough of the items we need with regards to clothing, blankets and basic essentials. I also have enough skills and supplies to know if I can't buy it I can probably make it and if I can't pay to have it done I can most likely do it myself.
Despite our extremely low grocery budget ($150.00 per month for three people) we have managed to stock our pantry, chest freezer in the garage and the freezer on our refrigerator quite nicely. If we had to and were careful I'm sure there is enough food in this house to sustain us for at least a year.
We have a garden space in our backyard and a supply of seeds to plant. We also keep chickens for eggs.
We keep several one gallon jugs of water stored in case of an emergency. At some point I'd like to add a couple rain barrels to our house.
While we live in an area that is less likely to be hit by natural disaster or even terrorists (knock on wood) and I'm not a big believer in zombies no place is immune to financial crisis. The economy effects us all. It effects the real estate market, the job market and the price of goods.
Even without a country wide recession, a job loss or medical emergency can put a family into its own private recession. For most of us the financial crisis that hit back in 2007 effected us greatly and it wasn't too long ago for us to forget about it either. A lot of us are still effected and working our way out of it.
Are you prepared? What are some of the things you've done or are doing right now? Do you think another recession is on the horizon?