Frich Reveals: Recession Core
Okay, we've all heard the recession indicator jokes online. But let's do a bit more serious check in together. Brought this week together with Kikoff - the easiest way to build credit fast. Let's recap how everyone around you is feeling & what you can do to prepare yourself if a recession actually does happen.
With recession warnings increasing, which of these “small luxuries” are you still spending on?
Sure - during financial uncertainty, we should be more mindful with our spending and make sure to build up a larger buffer than usual (always in a HYSA; here are our favorites). But that doesn't mean we need to cut out every single thing that brings us pleasure. Because that's just not a sustainable way to live long-term. So, when it comes to your peers, what are the small luxuries people are not giving up?
21% still indulge themselves in little trets here and there. 20% aren't ready to give up their fancy coffees. 17% indulge in food delivery. 20% put themselves first & aren't ready to pull back on their beauty and skincare routines. 22% aren't ready to give up on going out for dinners with friends. And you know what? To each their own! But this definitely isn't your sign to indulge in everything, everywhere all at once. Just remember to treat these as occassional treats. :)
Do you know your current credit card balance off the top of your head?
Only 14% know their credit card balance off the top of their head and that is not good. The number one rule in getting your finances under control is to always spend less than you make. You'll hear this over and over again but it's true - "It's not about how much you make, it's about how much you don't spend." Make it a habit to review your balances at least once a week - this will naturally help you adjust your spending & it will help you catch any unwanted (or unexpected) transactions!
If you’re worried about a recession, how are you preparing yourself?
We're not saying there will be a recession, but it's fair to be a bit more cautious given everything that's happening right now. So how are people preparing? Almost a third aren't actually worried about a recession, 26% are starting to cut down their expenses, 25% are putting aside more money to their emergency fund, and 21% are actively working towards adding some additional income through side hustles.
If you're worried but don't know where to start yet, here's what we'd recommend:
- keep growing your emergency fund and always keep it in a HYSA (here are our favorites)
- keep an eye on your credit score and make sure it's in good shape (if you need help, we recommend checking out Kikoff)
- start cutting down on your non-essential expenses
- consider looking for a side hustle to boost your income
Good luck & let us know if you have any more questions. We're always here to help!
