Excellent article on preparing for the next downturn at Get Rich Slowly

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:

  1. Bolstering your emergency fund
  2. Balancing your budget (don’t succumb to lifestyle inflation when times are good)
  3. Double-down at work, rather than seeking a new job (since recent hires might be the first ones let go at your new company)
  4. 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

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