Hello Achievers! Today we will be talking about personal finances in 2020. I will share an essential tip today that will protect your money if 2020 has an economic downturn like 2008.
Recently Ray Dalio’s Bridgewater Associates, one of the world’s largest hedge funds in the world (manages about $160 billion), placed 1 billion dollar bet that by march 2020 stocks will fall.
It has been more than ten years since the last recession, and many have predicted that the next recession could come in 2020 if we go by history.
Well, no one can exactly tell when the next recession will happen, but everyone can PREPARE for it.
For 2020 at least for the first quarter do just ONE thing with your money to be prepared, and that is
Save as Much as possible by March.
First, have at least an Emergency fund of $1000 that will give you enough buffer. You can read more about the importance of an emergency fund in this post.
Your goal should be to have at least one month of expenses in savings by end March 2020, and 3-6 months of expenses in savings by December 2020.
I already have my emergency fund (1-month living expenses) ready, and I am targeting to have two months of expenses in savings by March 2020. I hope you will also join me in this personal finance goal.