Recessions often invoke images of doom and gloom. We often think of recessions as something negative, something that we have to be frightened of. However, you can take advantage of recessions and make them work for you. To do that, you’ve first gone to understand how money works. Here, we list our top tips for you to prepare for and take advantage of a recession.
What are “Assets”?
To begin, it is good to know what exactly an asset is. Most people think of assets merely in tangible terms – bonds, stocks, real estate, and gold. However, there are intangible assets to think of, including:
- Your network
- Your online expertise
- Your perspective
- Your experiences
You need more than financial assets; you also need partnerships. Having an audience is an invaluable asset, and you can build on it through a social media page or newsletter. These intangible assets will help you make the money that will then become your financial assets.
A Chance for Side Projects
A recession will likely hurt your income. However, this gives you the chance to think of alternative ways of making money. To take your mind off a recession and pick up another stream of income, you can pick up a side project. Think of all the projects you may have wanted to take up but never had the time or momentum to. During a recession, you can think about those side projects again, and figure out if they can possibly be profitable.
Take Advantage of Discounts
During a recession, everything goes on discount – most assets go down. If you are adequately prepared for a recession, you can snap up assets when they are at their lowest prices. At the same time, no one can predict the bottom of the market; all we can do is take an educated guess. You need to be comfortable buying things at a discount when the time feels right, rather than waiting for “the biggest discount” that may never come.
Release Your Hidden Entrepreneur
Entrepreneurship does not require an MBA. Instead, entrepreneurship is about your mindset. It is a way of life and thinking, and it is a matter of your perspectives and creativity. Everyone has entrepreneurial traits baked into us. A recession can help you reveal those traits. Get creative and think of something new you can do. Perhaps you can use your passions as a starting point – what are you interested in that you can explore further? Could money be made from this exploration? A recession forces you to dig deep and uncover any hidden qualities that you may have, giving them the chance to bloom.
Be Flexible
One of the most important traits to have during a recession is flexibility. You need to have an open mind during a recession because you might be hitting the wall often. You will need to be open to new possibilities and alternative avenues that can help you reach your goals. A recession is a chance for you to reinvent yourself and start anew. To prepare for it, you can begin updating your financial literacy. If you have ever wanted to learn more about the stock market or real estate, the time is now.
