Recession Proof Your Money
A recession presents challenges for everyone, but it’s possible to sail safely through the stormy waters if you make the right preparations in advance. Here are some steps to take so you can optimize opportunities and grow your business and finances during challenging economic times:
Save
If you want to weather a recession and thrive, you have to have adequate reserves in place. This strategy begins in the home. Start by building up one month of household expenses in a savings account and then keep adding to your nest egg until you have at least six months’ worth of funds available for a rainy day. Next, apply the same savings model to your business so that you have a comfortable buffer if you ever need it. Setting up an automatic withdrawal from your checking into your savings account every two weeks is a very effective way for those reserves to accumulate like clockwork. Lastly, you need to set aside some money to invest. That way, you can follow investment guru Warren Buffet’s advice and “Be fearful when others are greedy, and be greedy when others are fearful.”
Grow
In turbulent times, the first thing you need to concentrate on growing is yourself. As Benjamin Franklin once said, “An investment in knowledge pays the best interest.” From the books you read, to the coaching you take, to the training you undergo, self-education is the key to growing yourself – and your business, too. Remember, only the very best real estate professionals will succeed in a recessionary market. If you work to grow yourself and be a voice of value and expertise for your customers, you’ll always come out on top, no matter what happens.
Invest
If you want to increase your net worth, you need to invest. To outstrip inflation over the long haul, you must get really good advice, put a system in place and then stick with it. The key to success is to have a safe-money strategy, a real-estate strategy and a stock strategy. When all three of these are in place, you’ll win over the long-term.
The oncoming recession will affect everyone. No-one can absolutely predict when the storm is going to come but, if you build your ark ahead of time, it doesn’t matter when or how hard it rains, it’ll be plain sailing! To learn more, listen to the latest episode of “It’s a Good Life”.
