Individuals Overcoming a Fear of Economic Recession | Manik | Gurzu

Overcoming the fear of economic recession is a formidable challenge that many individuals face during times of economic uncertainty. The specter of job losses, financial instability, and the ripple effects on personal lives can be overwhelming.

In this episode of knowledge ketchup, Manik talked about how can individuals overcoming a fear of economic recession and practical steps to survive economic recession.

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Transcript

1. Individuals overcoming a fear of Economic Recession 27 Sep 2023
2. Situation at Economic Crisis The Economic Cycle, an ongoing process
3. What we'll learn today A History of Economic Crisis 01 02 03 Indication of Economic Crisis Prepare for a Financial Crisis
4. A brief history of Economy Crisis The Greater Depression 36 months 1929-32 1956-57 The International Debt Crisis 84 months 1982-89 The Suez Crisis 18 months 1997-2001 The East Asian Economic Crisis 48 months The East Asian Debt Crisis 24 months 1997-98 1992-1996 The Russian Crisis 48 months 2008-2009 The Great Recession 19 months The ……………. Recession 19 months 2020 - on Going
5. Then, how can you know the indication of Economic Crisis ?
6. Inflation Rate ( > 7% in case of Nepal) Interest Rate ( Double Digit in case of Nepal) GDP Rate ( < 2 in case of Nepal) (-ve on avg incase of Global) Unemploy. Rate ( > 3% in case of Nepal) Bank Financing ( Assets low Valuation, Not easily Financing available ) General Indications Such datas are usually available in Central Bank websites or ministry level websites or global data portal
7. War (Any war anywhere) Balance of Payment (Export<Import) Country FCY Reserve Govt. Debt Level Other Indications Such datas are usually available in Central Bank websites or ministry level websites or global data portal
8. Search Central Bank of ……Name of Country)….. Central Bank of Nepal ………………………. ??? Central Bank of India ……….……………….??? Central Bank of USA ..……………………….??? Central Bank of China ………..……………….??? Financial data of most of the country will be published at their Central Bank portal
9. Ohh, how can we set back on such situation ???????
10. 10 ways to prepare during economic crisis Liquid Savings means you can change in form of cash anytime on within 1 months. Pay down high interest debt. Try to maintain with No debt or Debt range at 25%-50% of total assets excluding Emergency Fund Check your monthly minimum requirement of cash including installments, prepare an emergency fund with 12 months+ fund backup. 1. Maximize Your Liquid Savings 3. Minimize Debt 2. Create an Emergency Fund
11. Have life & non life insurance coverage so that min. pay can save your greater spending, check expiries. e.g. Damage of property due to heavy strikes 5. Insurance Coverages Diversify the investment portfolio into safer investment portfolio e.g. FD -> FD + Central Bank Bonds E.g. Lehman Brother, US Shutdown. E.g. Nepal Development Bank Liquid. 4. Safer Investment Increase your credit card limit as a backup and better plan to use to manage your cash inflow and outflow. At Crisis time bank would not lend the fund. 6. Better Credit Card Deal
12. Maintain basic need supplies so that you can maintain min. supplies, don’t need to pay in higher during crisis situation 8. Maintain Basic needs supplies Get updated daily with economic news that will help to get action plan on urgent basis. Familiar with Central Bank data at least. 7. Update with Economic news Pay time credit cards makes you debts free, CC is high interest based loan, so make it free. 9. Pay timely Credit Card Categorize the expenses at Basic & Installment Expenses, Career Expenses & Other Expenses. Immediately lower or cut off other expenses, review basic exp and career expenses. 10. Pay cut you costs
13. Keep updated with your financial plan based on micro & macro economic situation.
14. Disclaimer: Provided information in this slides are prepared based in available data and experience of author including cumulative authors as a generic information how an individual can prepare on economic crisis time to prevent them from major losses. Its not a specified financial information for general financial planning. Individuals are requested to have an additional due diligence above this provided contents and additional their own R&D depending on their financial risk reward appetite and goals. Thank you Manik Balami CFAO - GURZU