BIRMINGHAM, Ala. (WBRC) - The government confirmed Monday what you already knew. We’re officially in a recession. So, we wanted to know what you can change right now to recession proof your budget?
Even though we’re in a recession, there’s hope it won’t last that long according to Marshall Clay who is a senior financial advisor with The Welch Group.
"What the stock market is telling us right now is that we’re sort of on a rebound and that the recovering is occurring or is about to occur,” Clay said.
In the meantime, to recession proof your finances, it’s best to build up your emergency fund which is money set aside to cover things like rent or utilities or unexpected emergencies like unforeseen medical expenses to unemployment.
"Cash is king and so when I’m talking with clients, I always tell them to reserve at least six to 12 months of their cash flow needs,” Clay said.
Also, if you don’t need it, don’t spent money on it.
NerdWallet also offers these tips: https://www.nerdwallet.com/article/finance/theres-always-a-next-recession-so-be-prepared
Clay feels the worst is behind us in terms of job losses. He's optimistic about the country's financial future.
"There’s some positive developments or some positive signals that the stock market is telling us about the underlying economy in the not so distant future,” Clay said.
The National Bureau of Economic Research also agrees this recession may be short-lived citing the over two-million jobs the country added last month.