6 Steps to Handling Money in a Recession | Personal Finance

5. Review your insurance policies

If you’re stranded at home and looking for constructive things to do, begin a review of your insurance policies. You may find lots of cash lurking in their nooks and crannies.

Consider raising your deductibles, which could lower your premiums substantially. Also, you may not need all the coverage you have, and perhaps you have duplicate insurance. The money you save by tweaking these policies can provide extra cash during recessions.

6. Invest for the recovery

Last, but definitely not least, manage your investments with at least one eye looking toward the future recovery. When the market tanks, it’s a stellar time to purchase growth stocks because they’ll be selling at a discount. Or consider adding to positions you already own, since you’re already familiar with those companies.

The recession is a time when opportunity will be knocking, so if you don’t want to leave the door wide open, at least open it just a peep so you pick up some bargains.

The world may seem to be crumbling around you, but it’s only temporary. After all, nothing lasts forever. In times of recession, there are many ways to handle your money and generate new possibilities for now and the future. By following the above tips, you’ll be able to survive this challenging time and be prepared for the moment the economy and stock market soar again.

Speak Your Mind