How do I SURVIVE a Recession?

[Navmoviefan]

I have very few assets(less than 10k), but most of them are currently in various local versions of P2P lending websites, the stock market(NZX) and some govt bonds. How can i prepare myself for a major recession, which every year seems more and more likely.(estimates say it might be ~36 months away)

The thing is, if I don't prepare well enough, most of my assets and wealth will be wiped out. How can people like me prevent this from occuring?

 

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[V8Bill]

You will feel better when you build your own 'economy'. Once you have an income that's independent from the economy or a recession you won't worry what the news says. It might even be the recession itself that will provide you the opportunity to build your own financial buffer and eventual wealth by capitalising on a business of opportunity.

 

[David Young]

There is no formula for this unfortunately. Most, if not all traditional investment and business strategies have some form of inherent boom and bust cycle in my opinion.

One thing to consider, that I am working on in my slow lane life, is to diversify your revenue streams so that they are unlikely to all be hit by the same recession at the same time. This could be the same revenue stream but in different geographical areas or different revenues streams in the same area/market segment - essentially hedge one with another.

Depending on where you live can also play a part. In the UK for example property prices in some areas have continued to rise throughout the recession (incl. rental income). However, in the UK property is a cornerstone to most families investment strategy and this is not mirrored in other European countries.

 

[wade1mil]

Don't worry. We will make America great again and all will be good.

 

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[Get Right]

By growing your assets...then protecting them. You're worried about the wrong thing.

 

[lowtek]

36 months away? We're already in a recession bro. The talking heads at the federal reserve are still chugging their own kool aid.

As others have said, create your own economy. Start focusing on increasing your income. Pick up side jobs, extra jobs, anything you can to get more money into your pocket. The more $$$ the merrier.

More cash will mean more opportunities to hit the fastlane once we bottom out.

 

[jon.a]

Recession proof your income, not your assets.

 

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[biggeemac]

This is something I have focused on for years, so I will give my example.

When I lived in California, I recession-proofed my income by taking some dollars and building a hot dog cart. I love serving food, so it seemed to make more sense to me than to gamble on something I know nothing about like stock investing.

Fast forward a few years to last year.......I managed to work two jobs at the same time for a short duration and rounded up around $60k in my savings account. Wasn't quite sure what I was going to do with my little egg, but I knew I wanted to recession-proof myself. Our landlord decided he wanted his house back, and so I decided I better BUY a house because I didn't want to be in that situation again. We found a huge foreclosured historical house that used to function as a bed and breakfast. It had 6 bedrooms, was 3600 sq ft, was in nearly flawless condition WITH some sweet upgrades already built in, plus it had another 1600 sq ft in the unfinished basement. The former owner apparently bought for 325k and then dumped over 100k into the upgrades. We put 40k into the down payment, and are currently using the remaining funds to build a 4 bedroom apartment into the basement. At the VERY least, we would be able to collect around $1500 a month in rent on the open market for the basement, but our plan should (conservatively) bring in closer to $7500 a month.

We are nearing completion of this project. Once the basement is finished, I will refinance the house away from the private loan we had to take out into a bank loan and get my 40k back. Because we have increased the value of the house, we will be able to pull the 40k in equity and still have > 20% in equity.....therefore giving us a better mortgage without mortgage insurance. I get to protect myself from unemployment, and have a nice bankroll.

 

[GuestUser141]

I have very few assets(less than 10k), but most of them are currently in various local versions of P2P lending websites, the stock market(NZX) and some govt bonds. How can i prepare myself for a major recession, which every year seems more and more likely.(estimates say it might be ~36 months away)

The thing is, if I don't prepare well enough, most of my assets and wealth will be wiped out. How can people like me prevent this from occuring?

Speaking from Ireland,which has become the worlds second most in debited county,behind japan.
Last November I dropped 210k ,all my cash in one move that went sour.

Today,back against the wall, i found this site,having read the commandments and read,some inspirational stories .

For the first time, since November i'm not feeling the pressure of bills,nor the burden's of life.

I feel free,with my inner awakening.

In a nutshell, my first impression's about this site suggests,that your never alone,even when it gets bad.
Use what you learn here,such as writing the post you,ve made seeking help.
Each step in the right positive direction,will reveal the answer you seek.

You now have assets,you've found an outlet to express your fears,step one
Read,read and share.
Then take what you gain,sleep,then take action.

You have more than most,that is called opportunity,use it

Thank you for sharing

 

[Tiger TT]

Build a fastlane business.

 

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[Alxander]

Short the entire market XD
jk


Good information in this thread, it's about not being dependent on uncontrollable events.

 

[SparksCW]

All my dad ever goes on about is the recession this and the recession that, blames it for the business struggles and the current situation he's in. Yes it made it harder of course, but he never adapted in my opinion. Always does what he always did.

But ultimately there is money in every recession, people still need and want things, plenty of business thrive. The ones that don't are usually the ones that either don't adapt, or they are built on poor foundations (like working from commission from government grants etc, the solar industry in the Uk collapsed a short while ago due to this).

It's not an easy question, I don't know the answer other than as others have said, make your income recession proof...

But to be honest you don't have enough money for any of it to be a problem, concentrate on making more rather than worrying about what might happen.

 

[Jon L]

find clients that will survive (or even thrive) in a recession, and go serve them. ... diversify your client base

 

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[Runum]

The people I saw most hurt in 2008 were way over leveraged in non-liquid assets. Lots of people were buying real estate betting on appreciation. They paid way too much for the property and the value dropped. They couldn't sell it to settle the loan. Their cash positions were reduced or were non existent. The forfeited their property or did a short sale to get out.

The assets may lose value but may also recover. If you have no cashflow you can get in a bad position at the same moment the asset has lost value.

Conversely, that would be a great time to buy up assets for cheap prices.

Good luck

 

[deepestblue]

If you have your eye on externalities for one second it will only inhibit the growth you may achieve with heartfelt effort.

 

[hellolin]

36 months away? We're already in a recession bro. The talking heads at the federal reserve are still chugging their own kool aid.

As others have said, create your own economy. Start focusing on increasing your income. Pick up side jobs, extra jobs, anything you can to get more money into your pocket. The more $$$ the merrier.

More cash will mean more opportunities to hit the fastlane once we bottom out.

Depend on what you look at. This recovery is fueled with easy money and the only sector that has real gains are the tech sector, other than that everyone is struggling. But then if you really dive deep into how bad the problem was back in 2008, then you'd be like thank god we didn't have to see breadline again. Everyone's income is down, no doubt, but then a lot of the higher income that we have been earning is due to the inflated value of the market before the recession hit. I understand for people who lives in a red state and working in a non-creative field, it is hard to see any recovery at all, but living close, and work in the tech sector I see things a little differently. It's not bad for us IT guys, but I too wonder how long can this last? Those VC guys gets their money because it's so cheap to borrow, but that's gonna have to end eventually. And at that time we might have NONE of the sectors in our economy see any real growth.

 

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[Mac]

Diversify across different assets, invest in other countries stock markets, low-cost index funds and start a Fastlane business. Major companies like Microsoft, etc came out of a recession. Freelancers will cheap to hire, meaning the cost of running a start up is going to be cheap (just a guess).

 

[Kung Fu Steve]

Start by asking a better question...

"How do I THRIVE during a recession?"

Ask a better question... you'll get better answers.

 

[GMSI7D]

Short the entire market XD
jk


Good information in this thread, it's about not being dependent on uncontrollable events.

yes.

people here don't understand the problem we are facing. The money we earn is a scam because it is fiat money.

https://www.google.fr/#q=fiat money scam

So the point is not to earn more of toilet paper. The point is to invest in real assets.

Real asset are not paper asset, stocks, bonds, all these scams.

Real assets are things like food , relationship with people that you can influence to help you, clothes , etc.

Everything that sustain life and keep you alive in the worst financial crisis ever seen that is coming.

 

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[Ninjakid]

Short the entire market XD
jk

lol this is actually a good idea

 

[FreshStart87]

Live life like there is always a recession and you will surely be recession proof.

 

[MJ DeMarco]

A recession cannot take away your skills, your network, your great product, or your personal power. Focus on things you can control, not the things which cannot.

 

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