Recession Precautions

I am particulary concerned about the way the economy is starting to look. I haven’t been too much attention to it because I know there are some fundamental good things about the economy, but in the last few days it seems like everyone has come to the collective idea that we are in a recession. It’s as if people have made it so.

This recession could be very different because we are looking down the barrel of a whole lot of unknowns. For example, how will internet businesses fare in the coming months? How will they react to the recession. We are in uncharted waters right now. I have decided to take a few financial precautions to help deal with a recession. Maybe I will change them or develop them as things progress and things become more clear.

1) I am increasing my income as much as possible by taking on extra work. Make hay while the sun is shining is always good advice. I am savings everything extra I earn.

2) With the fact that we could be heading for stagflation as a very real threat, I have started stocking up on staple items that store well in the cupboard and will probably increase in price. If something I use often jumps10%in the price in the next year, I have just had a 10% return on investment. Granted I am only devoting a few percent of my income to this stocking up, but I think it is a bona fide way to hedge against inflation.

Tags: financial precautions, recession, stagflation