When the economy takes a downturn, wise consumers usually respond by changing their financial behavior. Here are some basic guidelines that can help you make the financial adjustments necessary to survive an economic downturn. Clear objectives are essential In difficult times, there's less room for ambiguity in defining financial goals.
Different goals dictate different strategies.
It's important to have a nest egg in case you suddenly lose your main source of income. CPA financial planners say you should have at least three months to a year of income set aside, depending on your current income, family needs, and potential job opportunities. If you're having trouble finding another job, think about relocating. Certain labor experts say that the Northwest and Midwest will have above-average job growth in the 1990s. Also, look at other industries, while employment in some sectors is expected to decline, in others, such as the health case industry, the number of jobs is expected to grow.