Mika
VIP Contributor
Economists are saying that the current global recession is the worst in the last 50 years. The current inflation rate in the US, the world’s biggest economy is 8.58 percent. The cost of food and energy is getting very high, the price increased by 12.6 percent between February and March.
Calm down: Don’t panic because a recession lasts only for a short time. The average recession lasts only 11 months. Once the recession ends economic activities boom.
No FUD: Avoid Fear, Uncertainty, and Doubt. This is very harmful to your financial health. A recession increases inflation. In order to control inflation, the government hikes interest rates. When the interest rates increase, the prices of the commodities rise. When the price rises, people stop buying, which eventually brings the prices down.
Don‘t spend, save: Don’t plan to buy a house or car because you will be paying higher interest rates, instead save money or invest in stocks because stock markets are down during the recession.
Calm down: Don’t panic because a recession lasts only for a short time. The average recession lasts only 11 months. Once the recession ends economic activities boom.
No FUD: Avoid Fear, Uncertainty, and Doubt. This is very harmful to your financial health. A recession increases inflation. In order to control inflation, the government hikes interest rates. When the interest rates increase, the prices of the commodities rise. When the price rises, people stop buying, which eventually brings the prices down.
Don‘t spend, save: Don’t plan to buy a house or car because you will be paying higher interest rates, instead save money or invest in stocks because stock markets are down during the recession.
