Recession: What is it & How to Survive it?

When unemployment rises and profits reduce, interest rate rises and markets give mixed signals

Recession is when the companies aren't making profits, economic output falls causing effect to many other things

Recessions have occurred in past too in mid-1970s, early 1980s, early 1990s, and early 2000s. Because the United States is the world’s largest economy and has strong trade and financial linkages with many other economies most of these recessions are also a result of US recession.

Recession could mean the decline in the global economic activity.

Say for example if there is economic slow down causing unemployment this would result in less demand, companies start layoffs, which results in lower consumer demand

#WHAT CAUSES RECESSION?

A number of theories explain the cause of recession that can be categorized into financial, economical, psychological factors

#What should you do in a recession

1. Emergency Fund: It is always good to be prepared for tough times.One way to be prepared is having emergency fund which can help you during rainy days.

2. Living as per your needs:- Only live as per your needs and put aside your desire and wants especially under tough times. Ensure that you manage your expenses wisely

There is no need to panic in response to an economic slowdown, but you should pay extra attention to spending . You can improve your situation and recession-proof your life. These include adopting a realistic budget, an emergency fund, and generating additional sources of income.