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Recession
When the Economy Hits Pause!
Disha Soni
March 13, 2025
FinWord of the Day
- March 13, 2025
What is Recession?
A recession is a period of economic decline marked by falling GDP, rising unemployment, and reduced consumer spending. It is typically recognized after two consecutive quarters of negative economic growth.
Recession-Proofing Your Finances
✔ Boost Your Emergency Fund: Aim for 6-12 months of expenses in liquid savings.
✔ Diversify Investments: Avoid overexposure to risky assets—focus on quality stocks, bonds, and cash equivalents.
✔ Cut Unnecessary Costs: Prioritize needs over wants to keep your budget lean.
✔ Expand Income Streams: Side hustles, freelancing, or passive income can cushion job loss risks.
What Should You Do in a Recession?
If Investing: Stay the course; market downturns often bring long-term buying opportunities.
If Running a Business: Strengthen cash flow, negotiate costs, and focus on core customers.
If Employed: Upskill and build financial resilience to navigate potential job uncertainties.
Pro Tip:
In uncertain times, be selfish with your finances—not in a greedy way, but in a way that protects your future. Keep a close eye on your cash flow, make decisions based on your reality (not the fear-driven headlines), & mute the outside noise if it doesn’t directly impact you. Your financial stability is your responsibility—own it.
Happy investing, and we'll see you tomorrow for another bite-sized financial term!
Thank you for reading FinWord! I’m Disha Soni, an Independent Financial Security Advisor based in Canada.
My goal is to simplify finance and help you feel confident of your financial journey.
If you’d like to explore how I can support your financial journey, connect with me here
Website: www.dishasoni.ca
Disclaimer:
All characters/examples in this article are fictional in nature. Any similarity to individuals, living or dead, is entirely coincidental. Nothing in this communication can be construed as investment or legal advice. Please consult your financial advisor before making any investment decision.
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