Some say money is the root of all evil, and I would have to partially agree. Being financially able and ready are things most people only hope to be, especially in an economy like this. I watched the effect the recession had on people when it began in 2008. It was not pretty, and four years later the country is not close to being fully recovered. I am terrified there will be another crash, and this time we will be the casualties. This is how I am preparing for another recession, and why.
As I look at the unemployment numbers and see the conditions others are living in, I panic. There is something very unsettling about how my children are growing up now versus how I grew up in the 1980s. The housing market has not fully recovered, but it is on the way back up. There are people with college educations working jobs they are over-qualified for because their family needs the money. It is a very sad thing to see, and I worry about what it will look like in 10 years from now. I decided we needed to prepare ourselves if another recession washes over us.
We knew things were getting tight around our house, and we could also see that our family members were having issues. We decided to move in with them and work as a unit to protect everyone. There is a little amount of money we have stashed away for emergencies, but that needs to be built up. I recently did the math and found out we need about $5000 to be able to live if my boyfriend lost his job. That was a reality check, especially when I saw the numbers laid out in front of me. I have decided to take on more freelancing projects in order to keep the incoming flowing in and not worry about where my next check is coming from.
The outcome we want
We want to be able to live without having to worry about where the next $5 is coming from to pay for diapers or milk. I am planning to buy a house in the future, and I hope by then the economy has balanced out. The emergency fund will be worked on, but not sure we will hit the goal in the first year. Ultimately, some savings is better than none. I am hoping for a quick rebuild if the economy crashes again, but I know that is not realistic.
Right now we are still floating above water, but another upset in the economy could send us sinking fast. We have made some big changes in our life already, but I fear this is not the worst we will see. Only time will tell, but I am still very hesitant to take on anything extra for at least another few months.
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