Practical Tips to get through the Economic Slowdown
You have by now likely heard about the concerns and probabilities of a recession appearing. Some may say that the recession has already entered Canada, some say it will start by year end, and some say it will appear in 2023. Most experts are predicting a recession but the timing of it is uncertain.
We understand that this can cause stress, anxiety, pressures, and uncertainty to your life and that is not something that we want. For this reason, we thought we would create a short blog to illustrate some practical ways to help.
First of all, it is important to understand that this is out of your control. You did not create the recession, and unfortunately it is a natural part of a free economy. Instead of thinking of how the recession may impact you, just keep it simple and continue living your day to day life.
Acknowledging that you are anxious is a part of the battle. If you acknowledge that you are struggling with some financial anxiety, that will give you the chance to understand it and deal with it. Whether that is looking for another job or budgeting tighter for this period of time, there are solutions you may be able to proactively create.
A big tip is to not make any sudden movements. It is likely the price of your home and your stocks have taken a hit. Do not feel that you need to pressure yourself to buy a cheaper house or sell stocks before they rise. Stress and anxiety can impact your ability to make good decisions, and it’s important to keep the long term in mind. You might already have a long term financial plan and goals for your future. Don’t let the recession make you think it will not happen. Long term plans are called that for a reason, they do not happen overnight. The recession may be a hiccup, but ultimately it is not the end all.
For this reason it may be important to track your finances more during this period of time. Understand where your costs are going, and what you can cut costs on. Maybe for example you may want to delay your big trip till 2024, cook more homemade meals, or limit your extracurriculars for a period of time.
It is very possible that this recession will not have much effect on you financially, but maybe you still feel anxious generally. For this reason it could be the effects of social media, or the continued use of the word and topic “recession” in conversations with friends and family. Try to limit reading articles or posts about it and tell your family or friends when you think that changing the subject or walking out of the room is the best for your mental health. It may seem like a simple thing, but it makes a world of difference.
We at GLM experience it all the time being in an industry that is fragile during recessions, and slowing down the pace and understanding the long term plan makes us feel better and equipped to handle whatever comes tomorrow.
Lastly, we do want to share that Deloitte recently forecasted that a short-lived recession in 2023 is likely. This is good news because if a recession does approach us, at least it will not be too long. We are due to go through an economic slowdown, but hearing that a potential recession at a short length is likely, speaks positively to us!
Deloitte predicts that since the job market is already so tight, unemployment should not rise as much as it typically would during a recession. This is due to lots of jobs still in demand, such as the service industry, and many employers willing to keep their employees if the recession will only be short lived.
We hope this blog gives a little clarity on what to potentially expect in the coming, but mostly we hope this blog brought you some tips that will help you navigate the economic slowdown, regardless of its size.