SOMA Living November 2022

FINANCIAL FOCUS Unfortunately, recessions are a normal part of economic cycles. Here are a few things to consider right now: Income stability. If your employment remains steady, you can ride it out. But if you think your income could be disrupted, you may want to consider joining the “gig economy” with freelance or consulting oppor tunities. Spending. Can you cancel subscription services you don’t use? Eat out less often? Shop more carefully? Debts. Pay down your debts, especially those with high interest rates. Emergency fund. Ideally it should include three to six months’ worth of living expenses, in a cash account. Protection plans. If your health or life insurance is connected to your work, you will want to review options for replacing them. Also, find ways to lower premiums on home or auto insurance, without sacrificing coverage, to save. Long-term financial goals. Trying to “outsmart” the market with short-term strategies can often lead to missteps and missed opportunities. Investing strategy. If you can afford it, try to continue investing when stock prices are low. Coming out of a recession, stock prices tend to bottom out and then rebound, so if you stop investing during a bear market, you may miss the benefit of a market rally. Risk tolerance. If you find yourself worrying excessively about declines in your investment statements, you may want to reevaluate your appetite for risk. It can change over time and affect your investment strategy. Diversification. Having a mix of stocks, mutual funds and bonds, can reduce the impact of market volatility on your portfolio. A recession accompanied by a bear market is not pleasant. By taking the appropriate steps, you can boost your chances of getting through a difficult period and staying on track toward your important financial goals. A ‘RECESSION SURVIVAL’ CHECKLIST

Gary T. Jones 973.821.4900 • g.jones@EdwardJones.com

With over 25 years of experience, I work with individuals and businesses to help you achieve your financial goals. As a longtime resident of SOMA, I am proud to serve the local community. To learn more about the content of this article or schedule an appointment to talk about your goals, please contact me in my Maplewood office.

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