You’re starting to see companies begin to shrink. 2023 is tough with so many companies announcing layoffs every day.
Here are some tips for workers and retirees during a recession:
Tip #1: Make yourself indispensable at work by being a team player and keeping a positive attitude. To be indispensable at work, consider the following tips:
- Be reliable: Show up on time, meet deadlines, and follow through on your commitments.
- Be proactive: Look for ways to improve processes or suggest new ideas that could benefit the company.
- Be a team player: Collaborate with colleagues, be supportive, and offer assistance when needed.
- Be a continuous learner: Keep up with industry trends and new technologies, and be willing to learn new skills that could benefit your team or company.
- Communicate effectively: Be clear in your communication, listen actively, and seek to understand others’ perspectives.
- Take ownership: Be accountable for your actions, and take responsibility for mistakes.
- Be positive: Maintain a positive attitude, even during challenging times, and be a source of motivation and inspiration for others.
Tip#2: Delay retirement until the economy rebounds to avoid dipping into retirement funds during a down market. Delaying retirement until the economy rebounds can be beneficial for several reasons.
- Firstly, retiring during a down market means that you may need to use your retirement funds to pay bills, and making withdrawals early in retirement during a down market could leave you strapped for cash later in life.
- Secondly, if you continue working for another year or two, you’ll have more time to save and invest, which could give your retirement savings more time to grow.
- Finally, continuing to work may also provide you with a sense of purpose and social connections that you may miss in retirement, which can be especially important during times of economic uncertainty.
Tip#3: Consider starting Social Security benefits early to reduce pressure on investments. One benefit of starting Social Security benefits early is that it can reduce the pressure on your investments during a recession. Monthly payments from Social Security may be enough to cover essential bills or at least reduce the amount that needs to be withdrawn from your retirement accounts each month, which can help to preserve your retirement savings.
However, it’s important to note that starting Social Security benefits early will result in a reduced benefit, so it’s important to carefully consider the impact on your finances before making this decision.
Tip#4: Start a side hustle to reduce the need to pull money from retirement accounts, and to boost savings or reduce debt before a recession. Additionally, a side hustle can provide a sense of financial security and control during uncertain economic times, as it allows individuals to diversify their income streams and potentially reduce their reliance on a single employer or job.
If you’re having trouble thinking of your own side hustle, one of the easiest ways to get quick money is doing gig work either through Amazon package delivery, delivery food via Doordash or Uber, or even being a ride share driver. If you have a product to sell or are a crafts person, think about leveraging eBay, Etsy are Facebook marketplace.
As always, stay safe and let’s hope none of us will be affected severely from these economic downturns.