In an article at Get Rich Slowly, JD Roth goes through some analysis on the potential for a pending recession (we’re overdue) and what we should be doing to prepare for it.
Some of his simple steps include:
- Bolstering your emergency fund
- Balancing your budget (don’t succumb to lifestyle inflation when times are good)
- Double-down at work, rather than seeking a new job (since recent hires might be the first ones let go at your new company)
- Make sure your asset allocation matches your risk tolerance (I rebalance every 6 months, and I’m due to relook at it Jan 1)
Overall, its an excellent read, with some good points.
Mr. 39 Months