Jeff Bezos: Don’t Buy A Fridge, TV This Holiday Season. Here’s Why.

Jeff Bezos, Amazon founder and billionaire, recently cautioned consumers and businesses that they might want to put off major purchases during the holiday season as an economic recession could be looming. 

CNN reported that the Amazon founder advised buyers and consumers to just keep their money safe from unnecessary purchases especially in the coming months. He advised American families to avoid buying cars, TVs, and other high-priced items as recession could be just around the corner. “Wait and hold onto your money”, he added as economy does not look good at this moment. Layoffs in many industries and sectors are rampant. Saving money should be everyone’s number one priority to keep their necessities funded should they get laid off from employment. 

Here are some of our recession-proof tips to financially prepare you from its effects:

1. Maintain a high credit score. If you want to be approved for a mortgage, credit card, or other loan in times of tight credit markets, you will need excellent credit.

2. Find an additional source of income.  While it's always good to have a full-time job, having additional sources of income can provide greater financial security. Whether you do some freelance work or sell items online, earning money from multiple streams is just as important as diversifying your investments. In today's unstable economy, having multiple jobs means more stability. 

3. Build a portfolio of diverse investments. Acquire earning assets in different investments to counter the effects of inflation. Invest in long-term and short-term markets. 

4. Practice a frugal lifestyle. Don’t buy unnecessary and impulse purchases. Tip: Just because it’s on sale and you can afford it, doesn’t mean you should buy it. 

5. Keep an emergency fund. Keep in mind that this fund should be able to afford your necessities when you lose a job or during medical emergencies. It’s not to fund your luxury purchases or when you fall short of money for your impulse buys. 

6. Pay your debts when you can. So that this won’t add to your stress anymore.

Layoffs are becoming even more rampant - one of the big key indicators that recession is just around the corner. Stock up on your cash reserves to make you and your family recession-proof. Downgrade your lifestyle for now and hold on your big purchases until the economy stabilizes again. Take care of your finances by being mindful of your spending habits especially this holiday season.