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| The worst is yet to come, and for many people 2023 will feel like a recession year |
Written by Irvis Murillo.
Statements from the IMF (International Monetary Fund), has declared that the worst is yet to come, and has declared that the world, is suffering the effects of a terrible recession in the coming months, and by 2023, will be the climax of this impending fear.
The high rate of inflation, the energy crisis, high food prices, and high agricultural prices will have very terrible consequences, and will be much worse than the current situation.
Many people are already living in recession (long before a real recession), and reading this news will allow them to worry more.
But the question is, how to face this situation?
We know that all citizens of a democratic country have the ability to manage our money, and we are the ones who make purchasing decisions, and who have the responsibility to improve or worsen our economic situation; and due to a lack of knowledge and economics, we make decisions without thinking about what may happen in the future.
In short, what I wish to point out is that each person has the ability to take responsibility for his or her economic situation. No government can help you directly to improve your economic situation, but if you work with strategies, you will have a better chance of improving your situation. However, when there is a recession and the prices of services or products rise, then there is a need for a flexible and beautiful monetary policy by the Central Banks.
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| In a recession, we will all be tight. |
However, we must remember that Central Banks are also organizations made up of people, and they are human beings, and they also make mistakes. But it is the strict will of a central bank to control the prices of its economy and allow inflation not to exceed a more serious one.
In this period of recession, things are adjusted because a central bank needs to obtain liquidity, and with that liquidity, it can have power, and counteract with the deficiencies of its own country. So when you talk about a recession, it means that your country's central bank will have to find the best strategies to safeguard all its citizens.
If the opposite happens, then your country, or the country, goes bankrupt, inflation rises terribly, and the FIAT money of that country plummets.
In this article, I will leave you with some tips on how to cope with an economic recession, so that it does not affect you too much. These tips, though small, will at least help you to cope and become aware of it.
Tips to smooth out a recession.
Here are some tips for getting control in a recession, from a citizen's point of view.
- Save as much as you can. That means, you should tighten up as much as possible, and avoid unnecessary expenses (travel, gifts, entertainment, etc.), anything that loses value in the long run, is what you shouldn't do. Saving is the key, and thousands of people do not apply it, and are convinced that it is difficult, or saving is for those who earn a lot of money, or have a lot of money.
- Squeeze everything that takes money out of your pocket. If you rent something that does not produce you, eliminate it immediately; if you pay rent for a house, or an apartment, eliminate it immediately; if you pay for a streaming service, eliminate it immediately. Only spend on essential and indispensable things in your life.
- Find thousands of new income channels. Finding new channels of income is an art, and it is hard work to find other channels. However, you can use the internet to leverage your talents and sell what you know how to do. One idea, for example, is to sell online courses. The internet is the means by which you can make money without investing a lot of money.
- Invest when everyone else is selling. Although it may be hard to accept this reality, investing when everyone else is selling is a great achievement, and it is one of the best things you can do. What to invest in? You can buy property if you have big budgets; or buy stocks or cryptocurrencies, with an investment of 10 USD.
Maybe you are tired of always reading or listening to the same advice, but if you really analyze it and see where you are failing, then you will realize the mistakes you keep making.
I hope these tips will help you determine your current and future situation.