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The Biggest Money Mistakes People Make in a Recession

Lazetta and other experts shared their recession advice with The Wall Street Journal


Many people are facing a situation they haven’t had to deal with in a long time: an

economic downturn. And they need help navigating it.


So we reached out to financial advisers, researchers, academics and other experts and asked them a simple question: What are some of the biggest mistakes people make in hard times, and how can they avoid them? After all, facing a downturn is hard enough without making it even worse by falling into common traps in the way you spend, invest and save.


As you’ll see, the mistakes range from the big to the small and cover a wide array of

practices and situations. Not everyone has the luxury of making some of these mistakes. But hopefully, they will make you think as you find your path through the coming months. And ideally, avoiding any of these mistakes will make your economic troubles a little less painful and the eventual recovery a little more robust.


Career on Hold


The wait-and-see mind-set hinders many people from proactively managing their careers during an economic downturn. They stay with companies due to loyalty, comfort and job security that isn’t always guaranteed. By seeking employment opportunities, individuals can affirm their value, test the economic environment, and make an informed decision regarding their current job situation.


—Lazetta Rainey Braxton, co-CEO at 2050 Wealth Partners, New York


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