As many of you know now, we are in a 2020 economic downturn— and most likely, a depression. This story will help you prepare how to become a winner of the next economic disaster so you don't end in the sea of a higher chance of unemployment, investment losses, and general financial instability. Especially, it will help you if you are currently in this time living paycheck-to-paycheck, down in debt, and have trouble paying your bills.
- First: What is a recession/economic disaster?
A recession is a downturn in the economy. On a broader scale, this means that businesses lose money and industry produces less product for two quarters — or six months — in a row.
What does a recession mean for everyday people? Recessions are typically marked by the higher unemployment rate, wages that do not go up, decreased housing prices, and a downturn in stock market equities and other investments.
1. Build Another Source Of Income
Warren Buffet has a saying that goes, "If your only source of income is your salary, then you're one step away from being broke."
Unfortunately, it's true. Our society that we live in has always conditioned us to find a job, to find a job, and to find a job. Unless you have three jobs at the same time, you need to find a way to generate a source income. Why? Well, it's your safety net. If your only one job fails and your employer decides to lay you off, then what are you going to do? Ideally, you don't want to reach the point. So, find another side hustle that can earn you extra money on the side, so this way you are not in a brink of falling apart when push comes to shove. One easy and efficient way to build a stable source of income is investing. That's my number of 2.
2. Invest In The Stock Market
Okay, now you have made the decision to invest your savings in the stock market. Now, what? Investing all depends on the nation's economy. The economy depends on disasters or pandemics. The moral lesson here is having an investment portfolio on the side gives you security for your future. Investing is even now highly encouraged than just putting your spare money on a savings account, as it has a bigger potential of return in both the short and long term.
Additionally, in case a recession, economic disaster, or a pandemic happens. You are given a rare opportunity to multiply your investments in a short period of time! With the right investing strategy and the right timing, you are bound to be wealthy, while others that don't invest at all are bound to be broke. The 2020’s economic disaster caused by the pandemic has made a lot of people problematic in their lives, but also it has made a lot of people richer than they were in the past years! Good thing is, you don't have to be rich to get richer. You can start with a decent amount of capital and still hit the jackpot on the stock market if you know what you're doing! It turned out to be easy than how people thought it was gonna be. If you have questions about the fundamentals of investing, leave me a question right down in the comments! Booya!
3. Learn High-Demand Skills
What do successful and wealthy people have most in common in this modern society? They own and master high-demand skills. Yes. Skills like, copywriting, design, cybersecurity, programming, social media management, business management, startup creation, and many more.
A simple Google search will show you what are the most demanded skills in this new world age. One of them is any skill that is technology-based. Why? Because our world is technology-driven. Everything is all about technology. Tech is the new consumption. So, mastering a skill that attributes to technology gives you an edge into a quick-changing world. Don't get left behind!
4. Spend Less
Yes, spend less, cut your costs, and remove unnecessary spendings! I am once again, quoting the great investor, Warren Buffet. He once said, "If you buy something you don't need, then you are going to sell that something you don't need". And he is absolutely right. It's only until later that we realize how we could've spent that money on better things. You don't wanna regret it, you want to be a winner! Free of mental hassle!
5. Build An Online Reputation
Now, this is one that you will most likely not see anywhere else. Building an online reputation nowadays has become as important as building a portfolio of your work. What can you get out of this? Opportunities. When times does its thing, you will have opportunities knocking at your door.
Building an online reputation nowadays is the most effective on Instagram and/or LinkedIn. But not limited to! Feel free to get creative and create your own path. Remember, the whole point of building an online reputation is to build a network of connections that you can, once in a while, get in touch, ask for favors, partner with, and/or sell a product to.
Thank you for putting the time to read this story! Hope you learned something essential from this story and I'm happy that you're taking the small steps into making your life better financially and professionally.
Leave questions in the comments section below regarding this story and I'll be happy to give free advice! Be in touch.