Mistakes to Avoid During Recession

[Jasmine]

Recession is a decline in the economic activity. The decline in the economic activity will result in market crash. The stock market will go down, real estate will go down, businesses will start losing revenue.

When there is recession, everyone will suffer, including general people. They will experience pay cur, lay off, raising price of commodities, etc.

Here are some of the mistakes you need to avoid during recession.

Don’t save money in the bank: During recession, inflation will be high, when there is inflation, your money will lose value. Therefore, never save money in banks.

Don’t spend more: Recession will increase the price of commodities, therefore, never be tempted to spend more, instead cut your expenses.

Don’t buy liabilities: Don’t buy things that will require money to maintain, a car for instance.

Don’t use debit card: debit card is tagged with your bank account where you have saved your money. However, credit card is bank’s money. Don’t spend your own money, instead use bank’s money.

 

[Mika]

During the recession, you shouldn't save money in the banks, instead of saving in the banks, you should start investing. When it comes to investing, a lot of people say that they don't have a lot of money to invest, this is one of the misconceptions related to investment. If you have a lot of money, that's fine but even if you don't have a big amount, you can still invest. All you need is $10-$20. With this money, you can invest in a micro-investment platform or cryptocurrency. However, you should never stop there because that's just the beginning of your long journey, you will have to continuously invest whatever amount you can. In the beginning, you should also stop overspending, spend money only on things that you cannot live without, instead of spending money, use your money to buy assets that can give you good returns when everything becomes normal.