With gas prices now at an all-time high, food costs increasing and housing costs also on the uptick it’s important that you start preparing for the tough years ahead. Some of the biggest companies in the world including Apple, Tesla, and Coinbase have all frozen new hiring and some other large corporations are beginning to lay off workers. The recession is coming, so how do you prepare?
This week I posted a video on Instagram talking about how, in challenging times, the gap widens between the strong and the weak.
It’s crucial that you start to implement systems that help you save money and that put you in the best position for when times get rough. The next few years are going to expose a lot of people in numerous ways.
There are simple fixes to your current lifestyle that will help you deal with the shock much better so you don’t get affected as bad.
YOUR FIRST STEP in preparing for the tough year ahead of us is to create a fixed monthly expense sheet. Getting your personal finances in order is vital and this is the first step. This is a tool that will give you a precise dollar amount of what it costs you to live each and every single month. Your expense sheet should include your car expenses, housing expenses, insurances, phone bills, and internet – it should even include haircuts, air filters, paper towels, and trash bags.
Below is a picture of what my fixed monthly expense sheet looks like. Feel free to copy mine or you can go on Etsy and purchase a digital spreadsheet that automatically generates all your numbers for you once you fill them in. I recommend @mywealthdiary which I follow on Instagram here is a link to her Etsy store.
Knowing exactly how much money it takes for you to survive is the first step in your personal finance journey
It is a great move that you can take today to put yourself in a better position for the future.
THE SECOND STEP I recommend is saving a minimum of 10% of your income. Every single month or biweekly when you get your paycheck, you should be instantly transferring 10% of your income into a savings account. Preserving your cash is vital if you want to make it through a recession/depression.
These are two actionable steps that you can take immediately that are going to make your life 1% better and allow you to step into the greatest version of yourself for the future. I have many other opinions and ideas on how you can best put yourself in a position to succeed through the 2022 great recession so continue to follow me on all socials and if you haven’t already downloaded my Mental Health app: www.Lifecoachzach.App
Email, me after you join the app so I can add you to my private Facebook group.