Here’s How Much You Need To Save RIGHT NOW in Case of Recession
(ConservativeHub.com) – As talk of a potential recession continues to grow, Americans across the board are growing nervous about how an economic downturn could affect their finances. It’s crucial to remember the US has seen plenty of recessions before and always made it out of them. Recessions since 1980 generally last 10 months or less, according to the National Bureau of Economic Research. Here’s how to weather the possible storm.
Certified Financial Planner Christopher Lynn of Allied Financial Services in Newtown, Pennsylvania, recommends that dual-income families set aside at least three months’ worth of expenses in case one partner loses a job. For single-income households, it’s safer to have six months of living expenses stowed away if cash flow comes to a full stop.
For retirees, financial advisors recommend having one to three years of spending money in cash on hand to make it through a recession. This strategy helps keep your day-to-day living expenses unaffected by market fluctuations and limits the need to sell cars, homes, or valuables to make ends meet.
Here’s how much cash you need to ride out a recession at different life stages, according to financial advisors https://t.co/pvhRvEku68
— The News with Shepard Smith (@thenewsoncnbc) July 7, 2022
As always, learning to live within your means, paying down credit card debt, and finding new ways to make money are all keys to a solid budget in or out of a recession. While a recession isn’t a certainty, keeping these tips in mind and maintaining an emergency fund can help promote any family’s economic stability.
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