Preparing Your Team’s Financial and Personal Life for a Potential Recession
Recessions can hit the economy hard, but they can also take a toll on your team member’s personal finances. However, that doesn’t mean that the bottom will fall out of the market. In fact, if you prepare properly, it’s possible to shore up your accounts and come out of a recession in better shape than ever.
Improve Your Budgeting Skills
Economic recessions create ripple effects that can affect wages, opportunities for promotions, and investments. When finances are tight, it’s helpful to tighten up your budget. Start by itemizing your expenses; then, find ways to cut costs. Easy ways to reduce monthly expenses include cooking at home rather than going out to dinner, cutting back on streaming subscriptions, and installing smart thermostats to reduce electricity usage during hot summers and cool winters.
Take your efforts a step further with informed buying decisions. Eliminate impulse buys by reading customer reviews and ratings online to ensure that you’re making a smart investment. That way, you can rest assured that each product is made to last.
Upgrade Your Homeowner’s Insurance and Home Warranty
In a tough economic climate, unexpected expenses can wreak havoc on your finances. Make sure you’re covered by upgrading to a homeowner’s insurance policy with a low deductible and ample coverage. The premiums might be higher, but you’re less likely to be stuck with hefty repair bills.
Alternatively, consider a home warranty. While homeowner’s insurance covers structural damage and property loss, warranties cover your home’s systems and major appliances. But is a warranty worth the price? If your water heater, furnace, stove, plumbing, or electrical system is getting old, a warranty can help you cover the cost of a replacement. Investigate any active warranties first to see if the cost is justified. If you’re not sure about major systems, check out the last inspection report on your house to look for notes about damage, age, or failure.
Consider Refinancing Your Home
When was the last time you evaluated your mortgage? If you’re in a better financial position than when you applied, you may be able to work with a lender in the US or elsewhere in your country to refinance your mortgage at a lower interest rate. Depending on the remaining balance, a new mortgage can also reduce your monthly payments and cut the price of mortgage insurance. This creates a buffer to help you offset the effects of a recession — and when the economy rebounds, you’ll be in a better position.
Cope With Financial Stress
Financial worries can create a significant amount of anxiety for your team members. Make sure they take care of their mental health by finding ways to cope with financial stress:
- Relieve tension. Work out regularly to ease tight muscles and release stress.
- Talk about it. Discuss your worries with trusted people; this brings perspective and prevents negative thoughts from festering.
- Avoid comfort shopping. Buying little treats can feel good at the moment, but it only exacerbates the problem.
When you’re intentional about stress relief from the beginning, it’s easier to stave off depression.
Thriving in a Tough Economy
If you’re concerned about the possibility of an economic recession, now is a great time to prepare a conversation with your team to go over your business and personal finances to weather the storm. For ways to help your business thrive in tough times, too, contact me Email me: [email protected], Schedule a call: Cliff Locks, or fill in the below form to start a conversation.
Contributor: Clifford Locks, CEO | COO | Executive Consultant and Coach | Board of Directors | Governance | Private Equity Podcast Host | Reverse Logistics | Supply Chain | Advisory Board | SaaS | Clean Tech | Med Tech | Metaverse | AI | Thoughtful ESG & DEI
I’ve created a wonderful opportunity for you to obtain Executive Coaching through an exciting new program for CEOs, C-Level Executives, and high-potential employees. The Executive Coaching program accepts clients throughout the World and is delivered via Zoom. This program helps team members to gain self-awareness, clarify goals, achieve their development objectives, unlock their potential, create actionable strategic plans, and thrive in a competitive global world. Learn more at https://millionairelife.services
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