With reports of a possible Economic downturn and with the prices of goods and services increasing, many are trying to find new ways of managing their income to survive in this economy. According to the Federal Reserve GDP tracker, recent reports show a 2.1% decline in real GDP growth in the 2nd quarter of this year. Some have noted that this could mean that the U.S. is already in recession.
This is causing many to fear the state of their economic affairs. The increase in both the prices of consumer goods and interest rates is making many worried about their financial situation.
Amy Hubble, principal investment advisor at Radix Financial has also noted that the financial stress is in part caused by how much more it has been costing people to get gas and groceries in the current economy.
Still, some periods of recession are normal, and usually, business cycles have shown that the U.S. has faced a formal recession 14 times since the 1920s. The latest recession was in February of 2020 and it lasted two months.
Those who are educated on the business cycle will usually find it easier to relieve their financial stress as they realize that this is relatively normal.
To decrease financial stress, people are also looking to change the ways they budget to reduce their spending. This along with taking a look at their debts and deciding which ones they could reduce can help people overcome a potential recession.
For many, it is also easy to lose money during this time, which is why it is important to take a look at your Asset Allocation and choose where your savings and investments should be to reduce potential risks. Finally, people should also be looking at potential alternatives to mitigate job loss, as that can help them be better prepared.