See How Other Americans Are Preparing For The Collapse Of “Bidenomics”
(TargetLiberty.org) – Americans have been grappling with the impact of COVID-19 on the economy since the virus began spreading. Millions were laid off during the pandemic, forcing families to deplete their savings. Thousands of small businesses were forced to close down.
As the country started getting back to normal, families were hit with rising inflation and gas prices. Housing prices, both for buyers and renters, skyrocketed across America. The cost of groceries, medical care, and nearly everything else also rose. The Federal Reserve, which had reduced the interest rate to zero, began increasing it to try to slow down the red hot economy. Now, the country is teetering on the brink of a recession and Americans are bracing themselves.
Between June 10 and 14, MagnifyMoney asked Americans their thoughts on the state of the economy. The survey found the majority, 70%, believe a recession is looming and 59% expect it to happen in the next six months. When asked if they were prepared for a downturn, 68% said they weren’t, including 77% of women and 57% of men.
While people don’t feel prepared for a downturn, 89% reported they’re taking action to ensure they’re ready. For instance, 39% revealed they are sticking to a budget, 63% are cutting back on their spending, and 26% are building their emergency fund.
Pollsters asked the respondents why they believed a recession was looming, 88% cited inflation, 56% pointed to rising interest rates, and 61% mentioned increased housing costs.
How to Prepare
It’s unclear yet if a recession is actually going to happen. However, Americans should try to prepare for one just in case. There are steps everyone can take to lessen the impact of an economic downturn on their financial health.
First, it’s very important to create an emergency fund in a separate savings account that contains enough money to cover at least three months’ worth of bills. If a recession slams the country and people begin to lose their jobs, this fund can help provide a cushion while workers find new employment and pay their bills without depleting their traditional savings accounts.
Second, create a budget. Not only will a financial plan allow families to save their money more efficiently, but it will also help them to live within their means if an economic downturn does happen, particularly if it lasts longer than expected.
Finally, pay down credit debt while the economy is still chugging along. The last thing Americans want to deal with during a recession is mountains of high-interest credit card debt that make it harder to survive when finances are tight. Pay it down and then do not use those lines of credit.
Are you doing anything to prepare for a possible recession?
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