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This month, we’re bringing some of our favorite money experts for The Recession Roadmap, a series all about how to navigate a potential recession as well as possible. In this episode, Nika from Debt Free Gonnabe shares a step-by-step process to help you build a recession-resistant budget.
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BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
As the global economy continues to struggle amidst the COVID-19 pandemic, there is an increasing likelihood that a recession may be on the horizon. While this can be a daunting prospect for individuals and families, there are steps that can be taken to prepare financially. Here are some tips on how to budget for a recession:
Assess Your Finances: The first step in preparing for a recession is to take stock of your finances. Review your income and expenses, making sure to include all sources of income and any debt payments. You should also check your credit score and make sure you have an emergency fund that will be able to cover at least three to six months of essential expenses.
Create a Budget: Once you have an idea of what your finances look like, you should create a budget that reflects your needs during a recession. This might mean cutting back on non-essential expenses, such as dining out or buying new clothes, and focusing on your most important expenses, such as rent or mortgage payments, utilities, groceries, and healthcare.
Reduce Debt: If you have any high-interest debt, such as credit card balances, now is the time to start paying it off. Focus on paying down the highest interest rate balances first, and consider consolidating debt into a lower-interest loan if possible.
Look for Ways to Increase Income: While it may be difficult to find a new job during a recession, there are opportunities to increase your income in other ways. Consider taking on a part-time job, selling unused items, or renting out a spare room in your home.
Prepare for Unexpected Expenses: In addition to creating an emergency fund, it’s also important to prepare for unexpected expenses that may arise during a recession. This may include anything from car repairs to medical bills. One way to prepare for these expenses is to set aside a portion of your budget each month into a separate savings account.
In conclusion, while a recession can be a challenging time for individuals and families, there are steps that can be taken to prepare financially. By assessing your finances, creating a budget, reducing debt, looking for ways to increase income, and preparing for unexpected expenses, you can make sure that you are financially prepared for a recession.
Why don't we just kill all men, then?
Having lived and worked in the US it's interesting the real issue of most not seemingly knowing a want from a need and living on credit is what the huge issue particularly in US is. I work in Finance and so many can't cover needs because they place wants first. Getting a new TV is not a need, eating out 6 days a week is not a need. That is a bigger issue with mass addiction to consumerism.
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Can we expect too good to be true coming out with more episodes?
Aggressively paying off my student loans helped me get real about my budget. I'm able to live on half my regular income (no partner just me) if I need to. Yes food is more expensive but there are ways to still be healthful and monetarily wise. I would encourage you to do a month of tight budgeting specifically with food and you'll be surprised how much you're wasting or where you can be more economical. One "hack", as an example, is to cook up some spaghetti sauce and freeze part of it so it doesn't go bad. You can eat on this several times through out the month and helps in a pinch so you're not spending money eating out when you "don't have time".
wonderful video!! shes so well spoken and knowledgable
The Savings Rate just collapsed down to 2.2%, the lowest level ever. Means Americans are running out of money. Last time it was this low was 2006-07. Right before GFC. Major Recession Warning. Expect a big decline in consumer spending in 2023. In five years, I would be retiring or working less hours, so I'm just curious about how people divide their income—specifically, how much goes to investments, savings, and consumption. I make about $165K a year, yet there is now nothing to show for it.
Market is down actually, I've been looking into techniques and obviously both bull and bear economic situation gives equivalent road to accumulate monstrous additions, I mean I've known about individuals making up to $300k during this accident and I might want to know how.
How fun!! Nika had such great energy, thanks for bringing her on.
Good video! C.F.; hair game is still strong!!❤
This was such a great interview! <3 and thank you for the shout out, I'm honored to be among such great company. 🙂
I really like the opportunity fund… I have a “buffer” fund for when I need to buy in bulk but I think I’ll rename the account to that!
I think you are 3 months late on your video
I love Nika! This is awesome.
Financial independence is something that people spend decades trying to achieve. For the average American worker, this can be a slow grind of saving a few hundred dollars per month in the hopes of being financially free at sixty-five so they can finally enjoy retirement. The problem? You spent three or four decades at a job, waiting to do what you want. Buddy, INVEST if you want to crack the code to financial freedom, retire early. In three years, I've earned more than $5 million.
I am shocked every time I see in comments that Americans spend on groceries on average 10-13%. I live in Romania and one of the wonders of the European Union is the tacit alignment of prices in most countries even though incomes are on average 2-3-4 times lower in many countries. As a result of this, if you don't eat bread and potatoes all month you end up spending at least 20-25% of your income on food, if you manage to be very careful, never eat out and only buy products that are on various offers. Not to mention the ridiculous price increases on gas and energy since the whole war situation started, that ended up being 50% of incomes for some people in the winter months.
I guess that I still watch these videos in hope that some day it will be relatable for me again.
Ngl, kinda disappointed. I was hoping for something more than super basic stuff I read in a book in 2000, some of which simply doesn't work anymore (hello 50-20-30 rule, I wish I had ever gotten to apply you to my life). I guess if you already know the basics, there's nothing really more to learn? =/ Overall it was a decent primer on personal finance, it just wasn't anything I couldn't have found in a hundred other places, and that's unusual for TFD.
So much Cheers from the Pacific West Coast of Canada.less fear when you've Socialized Medicine, feel bad for you Americans.
The things I don't understand are, how I see people filling restaurants, for breakfast lunch and dinner, eating at fast food restaurants, how can ya'll keep affording to do that? Plus all the newer cars? I live in a minimum wage town. How are people doing it? There was a time when it was cheaper to eat out, however not anymore.
I've always loved how down to earth and realistic TFD videos are, but I've always struggled to implement the advice in my own life because of the career I'm in. Would you ever consider a video about budgeting geared towards people in creative careers, like theatre or music? Work is much more volatile and less predictable in these fields, and because of the need for flexibility, the types of survival jobs we get have less predictable income too.
999k followers!!! Omg!!!
Though this video mostly feels like a repeat of the Budgeting 101 type content we've seen a few times already in this channel, the bare bones budget section was helpful for recession thinking, and it's a good solid video to save and keep handy for future use. Love Nika too!
I'd say this is a basic beginner budget not necessarily a recession budgeting tool. 30% of your income on wants, more than savings and debt…when life gets more expensive.is asking to be In a tough spot. Reversing the savings and wants category will give more wiggle room and sense of security while also allowing reserved spending
Really Loved ❤This! She make this topic so easy to understand and relatable.
Bad Blood was amazing. It’s one of the few non-fiction books that I’ve ever really wanted to read, and it lived up to all of my expectations!
We’ve got a Ruth Goodman stan in our midst!!
Thank you so much to Nika for such clear/not fearful guidance. Thank you to TFD for introducing me to Nika. Some how I hadn’t found her page yet and I’m so glad she’s on Instagram.
I feel one Of the greatest challenges that we first timers face in the ma rket is that we end up losing all we have,making it difficult to find ourselves back to our feet. My biggest advice is to always seek the services of a professional just like I did when I ventured into it for the first time. Big thanks to Hilder Ferguson. I now make huge profits by weekly through her services while still learning to stand on my own.
The 50-20-30 budget sounds like a dream. Coming from a 100-0-0 situation I find it extremely hard to spend that much on wants, even when I can afford it. Having worked my way up over the years so that I could have afforded 50-20-30, I still lived by maybe 50-48-2 in fear of needing the saved money one day. And luckily so, as last year I experienced a severe financial setback after months of illness, bringing me right back to 100-0-0. Now it's living outside the city, no car, no wants, till I have worked my way up again. If you are one job loss or illness away from starting at the beginning again and have no help in the background like a financially stable family who could help out, how is 50-20-30 realistically achievable in the long term?
Nika is such a charismatic person! I wish she had YT channel
Thank you for the advice. The “happy” tone made this one a bit grating to me. Recessions mean a lot of people lose their jobs, and a big percentage will enter poverty. I realize that there’s other channels that capitalize on people’s fear (“Recession! Be afraid!”). There is a spectrum between that and this. Imagine if that tone was used for a “How to prepare for cancer” video.
Really great video!
NO WAY THE PHANTOM TOLLBOOTH IS MY FAVORITE BOOK OF ALL TIME TOO!
Sorry for all caps but ahhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh never heard another person say that! It's the only book I can reread because I genuinely get something from it every time!
omg is it going to be Miss be helpful guest hosting???
Learned something new, barebones budget. Definitely going to make one tonight
The #1 thing that makes me not want to watch TFD guest videos, is the bad the sound quality. Get your guests some better microphones! It’s always so tinny, piercing loud points and echoey quiet parts
I have been using this method for a few years. It helped me save more once covid started and gave me the freedom to quit a job that I didn't want.
Great tips!! 🙂
Phantom Tollbooth and The Secret History omg
It’s no longer a story that the world is experiencing a global economic downturn I’m so happy that I’ve been receiving $64,000 from my $15,000
Investment every 8 days…
IMHO, one of Nika's points is really important- to the best you possibly can, do not stop putting into your 401k or IRA. Recessions are great times to invest as opposed to sell. As much as there are people who think the system is about to collapse- I'm not sure there's a realistic possibility of that. There has been more than one adjustment in income balance over time- moving from the top to the bottom back to the top- and in all of that time, the market expanded. And her suggestion to invest if you can goes right along with that. There's kind of a sick old saying "buy when there's blood in the streets"- but it applies to recessions.
Could you please speak a bit more slowly? ;-). Thanks.