With the cost of living crisis fuelled by sky-rocketing energy prices showing no signs of slowing down, it’s more important than ever to make sure your finances are in order. Experts predict that inflation will only get worse before the end of year and is set to reach record-highs next year. Many say that a recession is imminent. So how can you protect your wealth from a recession?
This does not constitute advice and advice should be sought in all instances before acting on it.
The best way to recession-proof your finances is to take practical steps to ensure your money is working hard for you. Take stock of your current financial situation to get an understanding of your income and expenditures so you know exactly what’s happening with your money and any areas that need improvement.
Tips to help you recession-proof your finances:
- Create a budget and follow it!
- Make saving a priority and have an emergency fund to get you through a short period of time where income might be an issue.
- Take the time to learn new skills or improve upon existing ones to make yourself more valuable in the job market.
- Don’t pay more than you need to. Look at your spending and cut back or out any unnecessary payments.
- Review your current energy tariffs, home insurance, car insurance, broadband, TV package, and mobile tariff and shop around to see if you can find better deals.
- Stay on top of debt and ensure you’re making all of your payments on time and in full.
- Prioritise any high-interest debt, such as credit card debt, to free up funds during this crucial time.
- Have multiple streams of income because if one income source starts to dwindle – or is cut off completely – you’ll have other income sources to fall back on.
- Diversify your investments! Review your portfolio and make sure your investments are spread across different industries and asset classes so your investments are protected from poor performances in one area bringing everything down.
Protect your finances
These tips will help you secure your financial future and protect yourself from the effects of rising inflation and the cost of living crisis. To learn more about financial planning or to get started on protecting your finances, contact the experts at Dental & Medical Financial Services today.