Recession 2020: What does it mean and how can you prepare?
Just when we thought 2020 didn't have anything else to throw at us, we see a recession on the horizon.
What is a recession?
A recession is defined as a significant decline in economic activity over a period of months, or even years - in short, people are spending and trading less. Experts classify a recession using various factors, such as high levels of unemployment, falling retail sales and negative gross domestic product (total value of goods or services) over this prolonged period.
Recession of 2020
Even before the outbreak of Coronavirus, we were headed for a Recession later this year. However, thanks to Lockdown and the shutting down of many businesses, and the loss of many jobs, the recession hit somewhat early. Not only that, but the recession is set to get even worse towards the end of October this year - right when it was initially expected to arrive.
For many, this will make an already difficult and uncertain time even more challenging, with more businesses going under and even more jobs being laid-off. The UK is set to endure the "largest recession on record", meaning nobody can truly know what to expect. The best thing anybody can do is take the time to prepare are best as they possibly can.
How can you prepare?
The key to preparing for ay recession is to find ways to adapt and become indispensable, even in a declining market, so that you can continue to make money and survive. Although this is easier said than done, there are three key areas you can start focusing on today, to make sure you don't get wiped out by the recession:
1) Invest in skills
Take some time each day to practise some valuable, transferable skills - such as copywriting, closing or speaking. These skills are essential to success in any job, whether you're an employee or a business owner!
Thanks to the internet and social media, it is easier than ever for anyone of any skill level to learn and practise skills such as these at a click of a button. It's as simple as that, pick a skill, find resources online and begin improving - no matter how bad a recession is there will always be a demand for certain skills.
2) Start a side hustle
Need inspiration for what you can do with your skills? One option would be to start your own side hustle! There's no need to make it more complicated than it needs to be: Set-up an account on a freelance site such as Fiverr, create services that make use of the skills you've learned and begin making some extra cash while you're out of work or struggling with your business.
I personally used Fiverr as a broke student a couple of years ago - through my freelance Copywriting service and as little as an hour a day, I was able to treat myself and out-earn my friends who were working day shifts in retail or restaurants!
If you're interested, you can check it out here: www.fiverr.com
3) Save, save, save!
If you don't already, then begin saving as soon as possible. From the money you make, set aside a small percentage from each wage and put it in a separate bank account, or even lock it in a safe if you need to.
Even as little as £1 a day would leave you with £365 in a year - that's enough to get your washing machine fixed, or even to treat yourself to that new laptop you've been meaning to get!