Posted by Tim Stobbs on October 22, 2008
It’s amazing I spend four days mostly in bed sick and the world changes. The Bank of Canada hacked it’s interest rate down by 0.25% (right after it’s 0.5% cut) and is actually saying it expects a mild world wide recession and that the US is actually already in a recession. So that damn ‘R’ word is fully out of the closet now.
So I’m part of the age group that actually doesn’t recall that last time one of these came about so what the hell do I do about it? Well here is my four step plan:
- DON’T PANIC. I know it’s one of the oldest pieces of advice out there, but it still applies. Sleep on all major decisions and try to think in logical long term time frames (if applicable). Now isn’t a good time to complete rearrange your portfolio.
- Evaluate Your job. Be honest here and don’t keep your head in the sand. If you know you are in a vulnerable industry during an economic downturn (ie: layoffs are likely), jump the gun and start looking for a new job now. The number of people looking for work will only get worse as time goes on in some industries. Yet make sure your jumping to a safer ship otherwise what’s the point. I know I’ve been cleaning up my resume and skimming job ads just to be on the safe side.
- Shore Up Cash. I know I’m typically one of those people who dislike sitting on cash, but I’m even starting to build a bit of pile in the near future. This especially applies if you think you could be laid off in the near future. In down times, cash is king. So make sure you’ve got your crown handy.
- Write Up an Emergency Plan. It’s never fun to think about losing your job, but it’s better to have a plan done in advance so if it does happen your not sitting there stunned after it happens. What’s in an emergency plan? Well at the very least you should have your resume updated, a to do list to reduce your money expenses (reduce your wants and safeguard your needs), and know where to go to apply for any Employment Insurance benefits that you entitled to.
So that’s my ideas, but I would love to hear from others on what they would do. So if you got an idea or have some experience to share please leave a comment.