Unlike typical weather forecasts the economy does not have a set trajectory or definitive fluctuation. Because of this the economy can grow and collapse in faster than usual shifts at potentially very rapid rates. Trusting instinct or news outlets to provide timely and accurate forewarnings leaves many in bad and occasionally detrimental financial states whenever the economy takes a turn for the worst. This is why being prepared for whichever economy comes next is a strong and important plan that everyone should actively equip themselves for.

Always Be Making Adjustments

Regardless of if the economy is going up or down it is important to be proactive with your expenditures by constantly evaluating your budget and how much of that should or shouldn’t be spent. Even if you decide to make no changes, constant reevaluation depreciates the chances of unexpected losses in areas that could have been avoided before or after the notice of its concern.

Keep up progressively positive habits

Whenever recession comes along, the most common mistake that individuals make is discontinuing their 401k contributions, stopping additions to their emergency funds, and other good financial habits. Conversely, in very good economy situations some even tend to also cease these habits because they feel comfortable enough to effectively retain their financial gains going into other economies. Both of these scenarios are wrong, even when in both excess and depravity. When the economy is down the emergency fund will sustain families effectively over 6-months, but if that is cutoff and people lose their jobs then where would that money be if depleted before necessity? Recessions lead to many jobs being loss, so keeping that emergency fund with the future investments alive will not only help throughout the event, but substantial increase its chances of growth after its completion.

Be Active

Being caught flat footed in the surfable waves of the economy leads to depreciation in personal assets and the overlooking of potential possibilities. Always be looking forward and be active with your position towards that future. Talk to financial advisors, be updated on the news and politics, work out your money-making muscles, and don’t be afraid to try new things to maximize your financial and emotional gains.

Being prepared is a very luxurious commodity that anyone can have (regardless of income) with a little bit of action, education, and motivation. Hang tight and ride on!