What if there is a recession? The benefit of the common man lies in these 5 answers

Recession: signs of economic slowdown in the world (Pic-Pixlr indicative)

The chief economist at the well-known brokerage firm Nomura Holding even says the next 12 months will be very delicate, as many developing economies in the world will go into recession. The main reason for this is inflation because central banks are tightening monetary policies to control it.

recession in the country and in the world (Recession) sounds. The recession simply means the stagnation of the entire economy. Everything in business and employment is ruined. ‘Eighteen income and rupee expenses’ also goes into this. If the burden of spending increases more than revenue, the recession will come the same way. Right now the same situation is being observed with high inflation. Experts, who have been involved in the multiplication of the economy, explain the situation in a dark way. Well-known brokerage firm Nomura (NomuraThe chief economist on the farm even says the next 12 months will be very delicate, as many of the world’s developing economies will enter a recession. The main reason for this is inflation because central banks are tightening monetary policies to control it.

Aside from developing countries, the biggest threat of recession is approaching the United States. Nomura’s report says that aside from the US, next year, the eurozone, the UK, Japan, South Korea, Australia and Canada will see a major impact from the recession. It is obvious that its effect will also be visible in India because it is directly related to the market and economy of these countries. So the question is what to do if the recession goes to the front. What planning should an ordinary citizen do in order to cope or avoid the economic downturn. Let’s find out.

1- Pay off the loan quickly

If you have taken out any loan, try to pay it off quickly. Especially a loan made with a credit card or a huge credit card bill. Employment may go into recession, work may slow down. This can reduce your income. But you have to pay the bill anyway. In any case, the IME of the loan must be paid. Following the increase in the repo rate, the EMI has already increased. It will increase even more in the coming times, while inflation will increase your spending. In this situation, if there is a financial crisis and you cannot repay the loan, the interest will be even more deadly. If you do not return the loan or bill money, the interest will increase. The way to avoid this is that when the time comes, pay off this loan and get out.

2-Know your situation before paying off the loan

It should not happen that your whole bag is empty in the process of repaying the loan and there is nothing left for further expenses. Paying off the loan means the rates are low now, so take out the money for the expenses and make the maximum repayment. This will reduce the debt burden and also keep the account balance. You know your situation and budget very well. You also know where to cut and where to use the savings money. After doing all the homework, focus on paying off the loan along with the savings.

3-Create an emergency fund

The emergency fund is very useful in case of recession or job loss. Experts say that about 6 months of your expenses should be saved in the emergency fund. If the job is lost in the future and there is no source of income, it can give great relief. Creating an emergency fund does not require much preparation. Just increase your savings. Saving your bank account is very helpful in this. Keep saving continuously because there will also be interest and the deposit amount will remain full.

4-Avoid extravagance

If you’re addicted to the extravagance to the greed of Bonanza’s offerings, avoid it. Useless spending is like pouring money into water. Check out the full expenses for the month and find out where and in what items can be deducted. If a toothbrush will do the job, don’t buy 5 brushes with the greed of a big package. If one fails, it is easy to buy another. But if there is no money left to buy, even buying a brush will be difficult. Purchases will be made out of necessity, but extravagance in the name of necessity is not justified. Survival food, insurance bill, groceries, utility bill, these are essential expenses. But going to restaurants for food, holiday fun and extravagant internet streaming expenses can overwhelm you.

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5- Necessary career and earnings

A strong professional career and a strong income can overcome a great recession. He works hard for a strong career and finds work in a good company. Good companies never give up on employees. Money can be cut in recession, but work will continue. For this you have to find a strong professional career. The company whose foundation is solid will also strengthen you. Your earnings may decrease, but they will not stop. This will keep you alive. To increase income, attention will have to be paid to alternative employment. Is there any other option to make money doing a job? If this happens, even after losing your job, income will continue to come from other means. And lentils and roti will continue as well.

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