No, but it also depends on how much you shop.
First, what even is a recession?
You have heard people throwing around the R-word; be it your economics teacher, a news reporter or even on Twitter (oops-X). But what actually is recession?
Recession = the economy’s mid-life crisis
A recession usually occurs when the economy is shrinking instead of growing. Imagine this: businesses making less money, people start spending less – you don’t have enough money for your favorite takeaway, jobs start disappearing and the overall vibe is just not it.
The textbook definition would be two consecutive quarters, i.e., six months of negative GDP growth. Now, what is GDP? The total value of all goods and services a country produces. So, when that number goes down for six months or more – it’s a RECESSION.
So, why should you care?
I know what you are thinking, “Dude, how much more broke can I be?”
Well…. it’s a recession, so:
- Prices might be still high, but your pay check won’t be.
- Your side hustles? Might collapse if people don’t want to spend.
- Big companies like Google and Meta? Yes, even they lay off people.
- Your fav local café? Probably going to shut down since people don’t want to buy $8 lattes.
It’s not just about Wall Street stuff – it’s also “Why is my bread $10 or why do I have not a job anymore?”
🔥 Real Talk: Recession Examples That Hit Different
Let’s talk about some of the biggest economic breakdowns history:
📉 2008: The Great Recession
- Main reason: Collapse of housing market and banks were handling your savings like toddlers playing with fireworks.
- Millions lost their jobs, homes, everything.
- And in the wall street, the stock market crashed like a plane landing gone wrong. Everyone was concerned with bailouts and toxic assets instead of their next Facebook status.
🦠 2020: Pandemic Recession
- COVID hit us like an asteroid hitting the earth and the world literally stopped.
- Businesses collapsed, unemployment was rising as the number of COVID cases increased, and Zoom became the new workplace/ classroom.
- The shortest and the most recent recession– basically an economic jump scare.
Now, coming on to the main question:
Should you panic?
Short answer is no but you need to be smart about it.
Recessions are a normal part of the economic cycle like breakups or getting sick. They suck, but they do end. And, you can protect yourself.
What to do during a recession?
- Emergency fund > Impulse buys. Save as much as you can, that extra shot in a club – don’t take it.
- Diversify your income: Freelancing, part-time, side hustles, or even Only Fans – whatever works.
- Growth: Learn new skills, add it to your resume, be recession-proof.
- Budget like you are broke even if you are not.
👀 Too Long; Didn’t Read
So, basically:
- Recession = Economy not growing.
- Unemployment increases, spending decreases and mental health – down the drain.
- But history shows we have been through worse and bounced back to normal ( remember the Great Depression 👀 – don’t worry if you don’t, topic for another time).
- Don’t panic. Be prepared for a recession any moment. Keep your money tight and skills refreshed.