It seems that we are in a cycle of boom and bust economies that happen every ten years or so. If you are young then you can probably bounce back quickly from these busts as you have years ahead of you to make adjustments.
But, what happens when you are middle aged and one of these busts guts your savings and wipes out your investments? You don’t have much time to rebound and build that wealth back. And if you do, by the time it happens it seems there will just be another bust anyway.
This article will go over several ways that you can make it through these unsettled times. From what’s the best mindset to how to diversify your income, you can find a few answers below.
Protect your money.
The first thing to do is protect what you already have. Your assets need to be protected so you can weather any financial storm brewing on the horizon.
You can try your hand at buying cryptocurrency after you get Bitcoin wallet if you feel like you understand the volatility and know there is a risk. However, since you can withdraw your money at any time and there is no risk of banks closing, you do have more control over your investment.
Every type of market has its own strategy, so make sure you are not trying one method across the board. During a recession, you can also buy bonds like Federal, municipal and corporate. These don’t have a high yield, but they are very safe so you are just trying to not lose what you already have rather than make a windfall.
Invest in yourself.
Machines and technology are replacing workers at a staggering pace. What tech doesn’t kill, outsourcing to other countries surely will.
That means you have to be specialized in whatever you do. If you are just starting out your education, invest in it in the right way. Make sure that you are not going for a career that is too broad. If you are interested in finance you can’t just be an advisor. You need to have a very focused area in which you are an advisor, in other words.
Diversify your income.
One way is to buy property to rent. As a crisis hits, many people can’t afford to buy a home and will need to rent. Having a rental property is not exactly passive, but it can be something that brings in a good side income. When done right, it can even provide a full time income. Property is one of the most recessions resistant ways to invest if you aren’t trying to flip houses.
Another way is to open an ecommerce business. There are plenty of items that are recession proof so find something that somebody needs on a daily basis regardless of what the economy is like and then source that product. Set yourself up with a site to sell it and you’re off. You can find many companies that offer fulfillment services so you aren’t responsible for the shipping or keeping stock of blank t-shirts.