A self-made millionaire shares her top 18 ‘recession money rules’: ‘Don’t panic’ and ‘prepare to borrow’
By | Ann Kaplan | www.cnbc.com
Worried about what your financial situation will look like in a year — or even in a few months — from now? With all the concerns about economic growth, it’s reasonable to be worried about a potential recession.
But the key is to start preparing now so that you’re in the best position with your money, in the event that a recession does hit in the next six to 12 months.
As a business Ph.D. and fintech entrepreneur who runs a multimillion-dollar company, I urge everyone I meet to remember that a recession can provide opportunities to get your finances in order.
To boost your chances of surviving an economic downturn, here are my top 18 recession money rules:
1. Build a 12- to 24-month emergency fund. In a stable economy, experts recommend saving for three to six months’ worth of living expenses.
But Catherine Valega, a CFP and wealth consultant, suggests that workers aim for 12 to 24 months in case they get laid off.
“I do tend to be more conservative than many because I have seen three to six months in emergency expenses, and I don’t think that’s enough,” she told CNBC in May.
2. Minimize high-interest debt. See if you can negotiate your credit card interest rates by calling your card issuer. Think about how you can make a strong case — maybe you’ve been with them for a long time or have a good history of on-time payments.
