A recession is known for being a time of stress and uncertainty. Most of us will try to carry on with our daily lives as normally as possible. But for some of us, that can be hard to do.
There’s a chance that you may suffer a pay cut, unemployment, and financial hardship.
This means that you might have to change your lifestyle — trimming all the extras. This can mean slashing back on dining, travel, entertainment, and extracurricular activities.
What will the personal impact look like? Well, it all comes down to your budget, as well as your current financial standing.
Necessity items are products that you need to live on — food, shelter, warmth. Regardless of your social class, you will carry on spending money in this area…
Luxury items are purely optional. You tend to purchase them only if you have a healthy income and healthy savings. For example, a new car, new jewelry, or an expensive holiday abroad.
Where does the money go in a recession?
Photo by j1myi