Ramit Sethi answers whether you should change your money strategy during a recession. Headline: generally do not change much if you already have a plan—maintain an emergency fund, keep investing monthly, and follow allocation ratios he outlines (referenced in chapter five of his book). The speaker promises a qualified "but" that adds nuance after the headline.
How does your money strategy change for a recession? I know you're not supposed to time the market. Notice there's always a but after this but if a recession comes, I want some money set aside to buy at the more discounted rate. What changes do you make to your allocation numbers such as saving, investing, fixed costs, and guilt free spending? All right, let me give you the headline answer and then let me give you the but answer. The headline answer is, overall, you really should not change much during a recession if you have a plan and you've been executing on that plan. Specifically if you have an emergency fund, if you've been investing every single month and you have a bunch of the ratios and accounts that I talk about in chapter five of my book, but.
