Are We In a Recession?

Preparing For A Recession

Looking at the current economic situation, are we in a recession? Mainstream media may avoid saying yes as they do not confirm nor deny it, but many can see that it is becoming more cumbersome to make ends meet. 

These days more and more of us are finding new ways to work through this decade without losing our wealth. The economic challenges are going to continue to evolve in the years ahead if they are not managed.

Side note: 

I am not a professional economist and hold no certification for the information you are about to read. Take what resonates with you and leave out what does not. Thank you for reading on. 

What Happens In a Recession?

In a recession a few things start to happen. The largest indicator is when there is a six month period of little to no growth in the economy. When businesses, corporations, big chain consumer goods and services start shutting down, the signs of a recession are looming. Next is the number of job losses that are on the rise. As little activity shows no signs of improvement, a recession is our reality.

Recession Vs. Depression

There is a difference between a recession and a depression. A recession is when everything slows down, jobs are lost and income is low. Not everyone will lose a job during a recession. Some people will feel the effects while others may not. 

However, in times of a depression, the downturn continues to stay low for a longer period. Job losses are much greater in a depression and there is very little consumer purchasing. Plus, by this point you are likely out of work along with everyone else around you. Most people feel the effects of a depression.

A Possibility Of Another Shutdown

I cannot confirm whether another shutdown will happen. Based on how things are these days, it is a possibility. If this is the case and we are in another long-term halt, it is best to be prepared this time around. 

Bailouts of 2008

In late 2008, several large corporations were bailed out from going under. Their saving grace is now a strain for us all. As a result of huge bailouts and money conjured out of thin air, making ends meet for millions around the world has become difficult. As this situation continues, food will eventually become more challenging to obtain. Moreover, the price of goods and services are exponentially higher after 2020.

People in our communities never imagined we would be in the predicament we are in today. In addition, several weather disasters and severe storms are ever increasing.

Without preparation, everything becomes more difficult. This decade is teaching us to prepare for anything that may come our way.

How Do You Protect Yourselves During Challenging Times?

1. Be prepared

2020 has shown us to be prepared. This includes having our economic, emotional, physical and mental houses in order.

In 2008 The U.S. debt was around $10.5 trillion. Today the U.S. debt is at $31.238 trillion and going higher after each word you read in this message. 

Canada is currently 2.07 trillion dollars in mortgage debt and 722 billion dollars in other debts. 

There were many who did not want to see what was coming back in 2008 and they trusted those who have us in an economic stronghold today. The ones who made the rules for our economy kicked the can down the road and are making things worse.

Budgeting

The Military Stays Ready

Everyone appreciates the men and women in the military who lay the groundwork in times of emergencies. They cannot do this on a whim or make it a last minute project.

There is preparation, time and planning involved in helping people in need when the situation calls for it. For example, during a war or a weather disaster, the military are there and ready with supplies and support. The job of the military is to be prepared and ready to help. This does not mean that we put all the burdens on them in high stressful times. We need to do some planning as well.

If we start stocking up on canned foods, flour, rice and water, first-aid kit etc, we save time and reduce stress on ourselves in case everything shuts down. We do not need military training to be prepared with basic food and supplies. We just need to take care of ourselves and be ready in tougher times.

2. Building Your Own Garden

My Blogs share building a garden in my backyard in the city. In addition, there are other home related blogs. 2020 has taught us to set up a garden for the future. It does not matter whether our space is big or small and you do not need to be a professional to grow your own food as well. 2020 was our first year growing food in our backyard, as well as the first time we had the space to do so. 

The lessons learned from growing vegetables in the first few years can help you with basic skills to get started. Additionally, I share more experiences as the time rolls on. You can successfully grow fresh produce in a small space without spending much money. 

My garden is budget friendly and produces a good amount of vegetables. Check out all the gardening blogs to learn more. 

Success Rate Growing Food

Whether or not you are successful at growing some food, continue using trial and error to see what works out. For example, I tried to grow some ginger in 2020. At first it started off well. After 3 weeks the root stopped growing and eventually it wilted. The same thing happened with the kale I planted as well as some garlic. 

However it did not stop me from trying again. The next year I planted a kale stem that ended up growing very large. As a result I did not buy any kale throughout the summer. 

3. Live Below Your Means

Living below your means is a lesson we learn the hard way. The beginning of 2020 decade taught us to spend wisely so that we do not regret our decision later.

As the only couple in our social circle once living in a small space for several years, our decision was side eyed. Most people assumed we are not progressing in life because we lived so small. However, a decision to buy a small property in a big city faired out well, with no stress on us about how to make ends meet. Plus, living well below our means gave us the foundation for something better in our future.

For the majority of people around us, it did not matter how much money they put down on their property, as long as they got into the market. Most people end up trapped in debt for decades. Meanwhile the ones with little to no debt are free from the burdens of debt stress. Even if what you own is a trailer or modular home, it is yours, especially if you are mortgage free.

4. Preserve Your Wealth During War

These are the days we may want to consider preserving our wealth, in case of more conflict. In the past 10 years the rise of digital currency has gained momentum. Paper money is not holding up to what it used to be. Bitcoin and other digital currencies have come into play with a solid platform, rising in prices at a fast pace. However, it is quite volatile and has dropped significantly since 2020.

At the start of the decade some businesses were not accepting cash in several establishments. Afterwards, credit cards became necessary to comply to social distancing rules. 

Today, a simple tap and go has become the solution to pay for your things. In addition, online purchases skyrocketed ever since shopping malls shut down. This transition paved a new way of purchasing our goods and services. Paper money may soon become a thing of the past. Be careful what you accept though.

Currency Shift

This decade is signalling us to prepare for an economic currency shift. Whether we accept this new form of digital currency or get out of the controlled monetary system depends on us.  

Crypto currencies are showing signs of becoming the next kind of currency in circulation. It is a form of exchange that has greater control of our money in the future. However, it is not a trusted safe solution when your money is no longer in your hands.  

Whether it is digital dollars or some other form that will take the lead in the future, paper money is being used less. Cash is not connected to technology as our world is leading us in this direction. Expect for cash to not last much longer. 

Diversify

Consider different avenues of storing your money. If you are comfortable, invest in digital currency. I would have been interested to invest in digital but tracked currency does not appeal to me.  

The word cryptic means mysterious or obscure. Crypto is not solid currency because it is undiscovered and uncertain. It is not a tangible asset. However, as our reality is turning into a more controlled digital matrix, in the future this kind of money will be pushed more and given a platform. 

Investing in food, essentials, shelter, items to barter and developing our skills are practical ways to secure our wealth during a recession. 2020 has taught us to prepare for our future by diversifying our money and preserving what we have.

5. Become Self-Sufficient

No one knows how long the situation that began in 2020 is going to last. Everything went back to normal for some time and then started back again. Becoming self reliant and aware is a good asset in times of a recession. Discern between assumptions vs. facts. Some people assume we are out of the woods and all is well. This is not the case. What started almost three years ago is still going on now.

We cannot assume that everything is okay. After all, people are still out of work and many businesses are shutting down after losing a lot of money. Learning DIY home, garden and cooking are three great ways to be self-sufficient.

In addition to building a garden, we are making changes inside our home without using outside resources to avoid extra costs. DIY projects are an invaluable asset when saving our money. In case there comes a time when no income is coming in, we can save a lot in doing our own renovations. 

6. Stay Under The Radar

The last of the 6 ways to prepare for a recession is to stay under the radar. Going for a walk in our neighbourhood is alright and buying groceries is a necessity, but going out to a crowded place for fun is probably not the best idea. It is better to stay home and under the radar. 

One can feel that something is not right. Our world never experienced a total stop of everything of this magnitude in 2020. If it happened once, expect for it to happen again.

A recession is a good time to keep a low profile. In 2023 we may receive the news that we are in a recession, but when the announcement arrives, most of us will already know this is the case. It is better that we start preparing for the year ahead.

Read on Gardening, Home Reno’s, Recipes and 2020 and Beyond for more information.

**Update: Originally posted on December 29, 2022. This post was published at an earlier date and has been updated with new information.**

**New Update-August 18, 2023.**

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