If you follow me on the socials, you know I have been asking people how they are doing with the latest release of the Gross Domestic Product (GDP) report. The GDP is an indication of how the economy is doing. To put it simply- an increase means the economy is growing and a decrease means it is declining. According to Magdalena Johndrow, Financial Advisor and Partner at Johndrow Wealth Management, “the textbook definition of a recession” is when we see two back to back quarters of decline. Johndrow notes, however “typically recessions involve high unemployment, poor retail sales and other negative economic indicators all which we don’t have.” 

With all this talk of recession, I thought it might be helpful to revisit a few tips I shared on The Mental Health and Wealth Show (episode 83): 

• Breathe: Give yourself a minute to relax and come down from your emotionally heightened state. Decisions made when you are anxious, stressed out, or worried may not be the same decisions you would make when you are calm and have a better understanding of the situation. 

• Check your fallback fund: You know your emergency fund, f*ck it fund… Whatever you call it, now is the time to make sure you have cash reserves. Just in case. 

• STOP the DOOM scrolling!: It is easy to be inundated with information when you are scrolling or have the news on a constant loop. Put the phone down, step away from the screen, and take a break. 

• Rediscover your favorite stress relieving activities: If you find yourself getting stressed by your finances, any talk about a recession- textbook or not- can throw you for a loop. Familiarize yourself with ways to calm down, center yourself, and things that make you feel better. 

Johndrow shared her tried and true recession prep tips, as well:

• Stick with your current financial plan

• Pay down credit card debt

• Dust off that resume and brush up on your interview skills... now, not when you find yourself without a job

We all have to navigate money, but let's make sure we are managing our emotions too. As they say- “stay ready, so you don’t have to get ready.”

You can learn more about Magdalena Johndrow and her work at JohndrowWealth.com. If you haven’t done so already, pop over to The Mental Health and Wealth Show and have a listen.