We’re currently learning this in extreme ways and will be better off as a result. All we have to do now is be positive. Tony Hawk, president of the Tony Hawk Foundation and founder and CEO of Birdhouse Skateboards; the most influential and commercially successful skateboarder of all time, with a net worth of $100 million.
2. Make the most of your financial resources.
Take advantage of all the services available if you’re anxious about your finances. Do your research on the CARES Act advantages that are available to you. Paying for necessities and reducing superfluous expenses should be your top goals. If you’re having difficulties paying your rent, try refinancing your mortgage or calling your landlord. If you have a lot of credit card debt, start paying it off right away, starting with the cards with the highest interest rates.
Right now, the finest investment you can make is in yourself. With unemployment at an all-time high, rebrand yourself as a more attractive job candidate.
Take online courses and gain new skills so that when we emerge from this, you may repackage yourself for a new economy. Barbara Corcoran is the founder of The Corcoran Group, the host of the “Business Unusual” podcast, and a Shark on “Shark Tank.” She can be found on Instagram and Facebook.
3. Adapt to keep your firm afloat.
Forget your plans if you want to keep your business afloat during these trying times. It’s past time to change. Consider how you can digitize your products and services; for example, you could virtualize your events or sell digital downloads instead of actual items. Use technology to automate your procedures and reduce your reliance on people.
In a crisis, cash is king, therefore keep an eye on your cash level on a daily basis. Collect from those who owe you money, renegotiate payment conditions with those who owe you money, and put a stop to unnecessary spending. Retention of existing consumers should take precedence over new business. Inquire about how you may assist them with their problems.
4. Accept the circumstance as it is.
A recession does not signal the end of the world; rather, it signals a shift in people’s wants from want-to-haves to must-haves. This recession, like previous ones, will give rise to a slew of new businesses and millionaires. You have the option of being upset, waiting it out, or relying on a government bailout or you can embrace the new normal, recognize the new opportunities, and adjust yourself properly.
With a positive attitude, problem-solving skills, and hard effort, this may be one of the most fruitful times of your career. There’s never been a better moment to start a business. People in a booming economy are swamped with marketing messages and have difficulty deciding where to spend their money.
Now that advertising is quiet (advertising is cheap), our requirements are crystal apparent. You can succeed if your company meets those demands in the same manner that Zoom, Netflix, and UberEats do. Mike Peters is an entrepreneur, philanthropist, and the founder of the Yomali group of enterprises, which has produced over $1 billion in internet sales.
5. Concentrate on resolving issues.
The way you approach each problem impacts the outcome. You will obtain a poor result if you have a bad attitude. You’re more likely to acquire what you desire if you have a positive outlook. In a recession, money does not disappear; it simply changes hands. So figure out who has money, what fresh challenges they’re dealing with, and what you can sell them to help them address those problems.
People, for example, still need to stay in shape when gyms are closed, thus online personal trainers are booming.
You must also know how to use social media and advertising to generate traffic to your website. You’ll succeed in good times and bad if you know how to acquire traffic that translates into paying customers. Connect with Bedros Keuilian, the founder of Fit Body Boot Camp, author of “Man Up,” and host of “Empire Podcast Show” on Instagram, Facebook, and YouTube.
6. Invest in yourself and advance your career.
Right now, there isn’t much “I’m afraid of missing out.” No one is getting together as often, partying as much, or brunching as much as they used to. This experience will not happen again in your lifetime, so take advantage of it.
Don’t become too comfortable. Find a new activity, read a book, enroll in an online course, and live in the now. You can do everything you set your mind to if you focus on yourself and invest in yourself. Zain Kheraj, co-founder and CFO of TrustMySystem, an analytics and sports consulting firm
7. Continue to exercise and study.
Make a plan for each day and hold yourself accountable to it. In many respects, I’ve had to pivot, but one thing that hasn’t altered is my dedication to exercise, which is essential for staying optimistic and focused. I enjoy going for a run or a walk. If you don’t, do 15 minutes of planks, jumping jacks, or core work on the floor while listening to your favorite sweat tunes.
I’ve become reliant on my electronics, like many of us, so I’m using them to educate myself. Use a motivational app or watch a motivational video, such as Glennon Doyle’s on YouTube “TEDxVasa’s “Unlocking Us with Bren Brown” or Antoni Lacinai. Take a deep breath and express your gratitude to the cosmos.
This circumstance may cause post-traumatic stress or post-traumatic growth. It’s entirely up to you. This could be the time when you need to incubate your gifts. Holly Parker, founder and CEO of Douglas Elliman’s Holly Parker Team; award-winning broker with over $8 billion in sales; follow Holly on LinkedIn and Instagram.
8. Think about the best and worst-case situations.
It’s difficult to predict what the future contains, yet difficult times can benefit those who persevere. Many of the world’s most successful companies, including Google, Apple, Microsoft, Airbnb, Disney, and many others, arose from recessions. Recessions abound with chances, but few people take advantage of them. It’s critical to acknowledge that the next decade is likely to be substantially different from the previous one. Don’t assume that assets that have done well in the past will continue to perform well in the future. Invest in gold instead of Tesla stock.
If you’re in charge of a business, make prudent judgments so that you can prosper even if things go worse.
Simultaneously, put as much money into expansion as you can. Maintain a sufficient amount of cash in your company’s bank account, and then aim for the stars. Vote for the charity Judd Rosenblatt, founder and CEO of AE Studio, an agile web development and data science consulting organization with a purpose to empower human agency through technology;
9. Continue to put in the effort.
Because the world is continually changing, you must be able to change as well. Concentrate on being innovative and adjusting to what’s going on around you. Do not cease leveling up with a sense of urgency, whether you’re learning a new talent or honing an old one.
Anything worthwhile in life requires time and effort, so you must put in the effort. Work like hell, as billionaire CEO Elon Musk puts it. Every week, put in 80 to 100 hours. This increases your chances of succeeding. Farhaz Kheraj, co-founder and CEO of TrustMySystem, an analytics and sports consulting firm
10. Do not surrender.
Keep your flexibility and willingness to pivot in mind. Those that emerge victorious from this situation will be continually moving. This entails being upfront with clients and looking for new revenue streams and methods to continue in business. Consider how you can make the most of your team. Is everyone in the correct spot?
In a downturn, how do you make money?
During a recession, you might be tempted to sell all of your investments, but experts advise against doing so. When the rest of the economy is fragile, there are usually a few sectors that continue to grow and provide investors with consistent returns.
Consider investing in the healthcare, utilities, and consumer goods sectors if you wish to protect yourself in part with equities during a recession. Regardless of the health of the economy, people will continue to spend money on medical care, household items, electricity, and food. As a result, during busts, these stocks tend to fare well (and underperform during booms).
Is cash useful during a downturn?
In today’s economy, where stock market circumstances are unpredictably volatile, knowledgeable investors are looking for more reliable assets to avoid losing money. While our economy appears to be improving, recent events have had a significant impact on the stock market. History has demonstrated the importance of having assets that can withstand a downturn. When it came to how to protect wealth amid a slump, the Great Depression was one of the finest teachers the world has ever seen.
Gold And Cash
During a market meltdown or downturn, gold and cash are two of the most crucial items to have on hand. Gold’s value has typically remained stable or only increased during depressions. If the market is falling and you want to protect your investment portfolio, it’s in your best interests to invest in and safely store gold or cash in a secure private vault.
As a general rule, your emergency fund should be at least three months’ worth of living expenditures.
While banks may appear to be a secure place to store money, safety deposit boxes are neither insured nor legally accountable if something goes stolen.
Furthermore, the Federal Deposit Insurance Corporation (FDIC) will not always be able to cover your money in banks.
Investing in physical assets such as gold, silver, coins, and other hard assets is preferable.
Real Estate
During a slump, real estate is also a smart strategy to secure wealth. Another investment possibility that often retains its value and appreciates is debt-free real estate ownership. Of course, the location is a big consideration. Near colleges is an area of interest for wise investors because these locations tend to weather depressions better. However, the long-term viability of this wealth-protection strategy is contingent on the soundness of the local economy.
Domestic Bonds, Treasury Bills, & Notes
During a depression, mutual funds and equities are considered high-risk investments. Treasury bonds, banknotes, and notes, on the other hand, are more secure assets. The United States government issues these things. When they mature, they pay the buyer a fixed rate of interest.
You can choose short-term bills that mature in as little as a few days depending on your demands.
If you’re searching for a longer-term investment, there are notes available that mature in as little as two years.
Foreign Bonds
Many experts in the past would have suggested foreign bonds as a depression-resistant investment option. Recent events have demonstrated that this is not always a safe bet. Pandemics and other market instability around the world have rendered this a risky investment, as all countries’ economies are affected.
What should I buy before the financial crisis?
Having a strong quantity of food storage is one of the best strategies to protect your household from economic volatility. In Venezuela, prices doubled every 19 days on average. It doesn’t take long for a loaf of bread to become unattainable at that pace of inflation. According to a BBC News report,
“Venezuelans are starving. Eight out of ten people polled in the country’s annual living conditions survey (Encovi 2017) stated they were eating less because they didn’t have enough food at home. Six out of ten people claimed they went to bed hungry because they couldn’t afford to eat.”
Shelf Stable Everyday Foods
When you are unable to purchase at the grocery store as you regularly do, having a supply of short-term shelf stable goods that you use every day will help reduce the impact. This is referred to as short-term food storage because, while these items are shelf-stable, they will not last as long as long-term staples. To successfully protect against hunger, you must have both.
Canned foods, boxed mixtures, prepared entrees, cold cereal, ketchup, and other similar things are suitable for short-term food preservation. Depending on the food, packaging, and storage circumstances, these foods will last anywhere from 1 to 7 years. Here’s where you can learn more about putting together a short-term supply of everyday meals.
Food takes up a lot of room, and finding a place to store it all while yet allowing for proper organization and rotation can be difficult. Check out some of our friends’ suggestions here.
Investing in food storage is a fantastic idea. Consider the case of hyperinflation in Venezuela, where goods prices have doubled every 19 days on average. That means that a case of six #10 cans of rolled oats purchased today for $24 would cost $12,582,912 in a year…amazing, huh? Above all, you’d have that case of rolled oats on hand to feed your family when food is scarce or costs are exorbitant.
Basic Non-Food Staples
Stock up on toilet paper, feminine hygiene products, shampoo, soaps, contact solution, and other items that you use on a daily basis. What kinds of non-food goods do you buy on a regular basis? This article on personal sanitation may provide you with some ideas for products to include on your shopping list.
Medication and First Aid Supplies
Do you have a chronic medical condition that requires you to take prescription medication? You might want to discuss your options with your doctor to see if you can come up with a plan to keep a little extra cash on hand. Most insurance policies will renew after 25 days. Use the 5-day buffer to your advantage and refill as soon as you’re eligible to build up a backup supply. Your doctor may also be willing to provide you with samples to aid in the development of your supply.
What over-the-counter drugs do you take on a regular basis? Make a back-up supply of over-the-counter pain pills, allergy drugs, cold and flu cures, or whatever other medications you think your family might need. It’s also a good idea to keep a supply of vitamin supplements on hand.
Prepare to treat minor injuries without the assistance of medical personnel. Maintain a well-stocked first-aid kit with all of the necessary equipment.
Make a point of prioritizing your health. Venezuelans are suffering greatly as a result of a lack of medical care. Exercise on a regular basis and eat a healthy diet. Get enough rest, fresh air, and sunlight. Keep up with your medical and dental appointments, as well as the other activities that promote health and resilience.
In the event of a financial meltdown, what will be valuable?
In the case of an economic collapse, food will become one of the most precious commodities on the planet. You will not be able to survive if you do not have food. Most American families could not survive for more than a month on what they currently have. So, how do you feel? How long could you survive on what you have today if calamity hit right now? The reality is that we all need to begin stockpiling food. If you and your family run out of food, you’ll find yourself competing with hordes of hungry people raiding stores and roaming the streets in search of something to eat.
You can, of course, cultivate your own food, but it will take time.
As a result, you’ll need to have enough food on hand to tide you over until the food you’ve planted matures.
However, if you haven’t saved any seeds, you might as well forget about it.
When the economy fails completely, the remaining seeds will vanish swiftly.
So, if you think you’ll need seeds, now is the time to purchase them.
During a recession, what should I do with my 401(k)?
Another method to insulate your 401(k) from potential market volatility is to make consistent contributions. During a downturn, cutting back on your contributions may lose you the opportunity to invest in assets at a bargain. Maintaining your 401(k) contributions during a period of investment growth when your investments have outperformed expectations is also critical. It’s possible that you’ll feel tempted to reduce your contributions. Keeping the course, on the other hand, can help you boost your retirement savings and weather future turbulence.
Is it possible for banks to grab your money during a recession?
The good news is that as long as your bank is federally insured, your money is safe (FDIC). The Federal Deposit Insurance Corporation (FDIC) is an independent organization established by Congress in 1933 in response to the numerous bank failures that occurred during the Great Depression.
Should I withdraw my funds from the bank during a downturn?
An FDIC-insured bank account is one way to keep your money safe. You’re probably already protected if you have checking and savings accounts with a traditional or online bank.
If an FDIC-insured bank or savings organization fails, you are protected by the Government Deposit Insurance Corp. (FDIC), an independent federal agency. In most cases, depositor and account protection at a federally insured bank or savings association is up to $250,000 per depositor and account. This comprises traditional banks as well as online-only banks’ checking, savings, money market, and certificate of deposit (CD) accounts. Accounts at credit unions insured by the National Credit Union Administration, a federal entity, are subject to the same $250,000 per-depositor coverage limit. So, if you and your spouse had a joint savings account, each of you would have $250,000 in FDIC coverage, totaling $500,000 in the account.
If you’re unsure whether your accounts are FDIC-insured, check with your bank or use the FDIC’s BankFind database to find out.
For your emergency money, an FDIC-insured account is also a good choice. Starting an emergency fund, if you don’t already have one, can give a cash cushion in the event that you lose your job or have your working hours reduced during a recession.
In general, you should have enough money in your emergency fund to cover three to six months’ worth of living expenditures. If you’re just getting started, put aside as much money as you can on a weekly or per-paycheck basis until you feel more comfortable fully financing your emergency fund. Anything you can put aside now could come in handy if your financial condition deteriorates.
In 2022, where should I invest my money?
For most people, investment is a must if they want to have a secure financial future. As the coronavirus epidemic proved, an apparently steady economy may be turned on its head in an instant, leaving individuals who were unprepared for difficult times scurrying for money.
What are the greatest investments for investors to make this year, with bond and CD yields so low, some assets at astronomical values, and the economy battling with rising inflation? One strategy is to invest in a combination of safer and riskier, higher-return investments.