money·6 min read

Skimm Money: How to Prep for a Recession, Going OOO, and Beach Reads That'll Make You Better with Money

woman reading on beach
Design: theSkimm | Photo: iStock
Jul 29, 2022

Call it Christmas in July because there’s so much to unwrap this week. But spoiler: The gifts aren’t that great. Is there a recession wrapped up in strong labor market data? Depends on who you ask. All we wanted was a “Renaissance”…

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Design: theSkimm | Photo: iStock

Should you worry about a recession?

Long story short, no. If a recession is upon us, there’s nothing you can do to stop it. But there are steps you can take to minimize its impact. Hint: Panicking is not on the list. “If you scream ‘We have a recession!’ and then people massively cut back on spending. Well, guess what? We’ve got a recession,” economist Claudia Sahm tells Skimm Money. We asked her and several other economic experts when we could expect a possible recession and how to prepare accordingly.

Thing to Know

Yield Curve

It indicates the relationship between returns on short and long-term US government bonds. Hint: Usually short-term bonds have lower returns. But sometimes (like before every recession in US history) the yield curve inverts. Meaning interest rates on short-term bonds overtake those on long-term bonds. And if we had a recession-predicting crystal ball, it would probably show an inverted yield curve. It’s happened several times in the last few months, most recently last week. One problem? There’s no telling exactly when a recession will happen after the yield curve inverts. History says one could be a few months or several years away. 

Make Good (Money) Choices

If you’re looking for a beach read that will make you smarter…

Pick up one of our recs. Pssst…they’ll help you get better with money. Because, let’s be honest, it’s hard to unwind and relax if you’re stressing about your budget. Whether you want to shift your money mindset, take control of your finances, or build your wealth, we’ve got you covered. Go ahead, have some fun(ds) in the sun. 

Tips Don’t Lie

Headed out on vacation? Let your colleagues know you’re logging off with a clear OOO message. Because more and more workers aren’t showing up to work this summer. Which means it’s extra helpful to let people know when you’re unavailable. (Plus, it’s important for your mental health to take a real break.) Your auto-reply should also let people know when you’ll be back and who to reach out to while you’re busy sipping on watermelon frosé. Here’s a basic template to get you started:

Hi there, 

Thank you for your message. I will be out of office until [DATE] without access to email. If your request is urgent, please reach out to my colleague [NAME] at [CONTACT INFORMATION]. Otherwise, I look forward to getting back to you upon my return. 

Thank you,

[YOUR NAME] 

Skimm more tips for writing the perfect OOO message and (bonus) follow our step-by-step instructions for how to set it up. Then get to relaxing.

Crypto, Decoded

You don’t have to trade coins to make money in crypto. Meet staking, aka passive investing for cryptocurrency. It works kind of like bonds or CDs where you lock up a certain number of coins for a set period to earn interest. Instead of HODL-ing crypto in your wallet, it becomes part of the blockchain verification process and you get rewarded with more crypto. There’s typically a minimum investment that would probably max out your entire investing budget…and then some (hint: the minimum is around $53,000 for ETH2 right now). But for a more affordable alternative, you can join a staking pool on a platform like P2P or Stakin. It’s still crypto, though, which means there’s plenty of risk involved. Find out if the rewards might be worth it to you.

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