Money in a crisis
Training 895 minutesrecession proof finances
You are 39, a logistics manager with two kids and a mortgage. The news is scary: prices rise, companies cut staff. In a crisis the best prepared win, not the boldest.
Training goal: Get through the crisis without new debt
▶ Play this trainingSituation
- Buy a fridge before prices climb
- Rebuild the budget: musts and the rest
- Change nothing, it will pass
- Cut costs and build 3 to 6 months
- Take a cash loan as a backup
- Update your CV and call three contacts
- Sell everything and hold cash
- Hold if you need the money in 5+ years
- Sell some to stretch the cushion to 3 months
- Ask the bank about options while still on time
- Spend the severance on a trip
- Skip payments until a new job
What you will learn
- In a crisis, budget first: musts apart from the rest.
- A 3 to 6 month cushion and a ready CV are your main shield.
- Never panic-sell long-term investments, and talk to the bank before you miss a payment.
Your real-life step
Work out how many months your cushion lasts with no income. Under three? Pick one expense and cut it.
Questions and answers
How do I recession-proof my finances?
Build a 3 to 6 month cushion, trim optional spending, avoid new debt and never panic-sell long-term investments.
Where should I keep money in a recession?
Keep your cushion safe and reachable: a deposit or savings account at a stable bank. Some people also spread savings across currencies.
Should I sell stocks in a recession?
Usually not, if you will not need the money for years. Selling in a drop locks in the loss, and markets have historically recovered, though not quickly.
More trainings in this module
- Financial scams
- Phishing and scam calls
- Ponzi schemes
- How insurance works
- Health and insurance
- How taxes work
Numbers are illustrative. A game, not financial advice.