5 Ways to Recession-Proof Your Life
Is there a 2023 recession? Here's the thing, a recession is inevitably going to happen.
We are overdue for a market correction. It's been a long time coming, and it has been knocking at our door due largely to Covid, the Russian-Ukrainian war, supply chain issues, underemployed people, highly-priced stocks, and the real estate market falling.
People are responding by traveling less and spending less. This recession is about to hit and it's about to hit hard. Thinking about this makes me anxious about the resources I’ve saved up and whether my business will sustain us.
I’ve worked hard, and to be honest, I’m exhausted. This is partially due to launching some new segments of business this year and having a one-year-old that keeps me quite under slept.
Ultimately, we need to find a way to find peace of mind and resolve and take positive action to bulletproof our money and bulletproof our minds.
Budget and Save
The first thing you need to do, if you haven’t already, is to budget out all of your expenses and cut, cut, cut as much as you possibly can. Keep in mind that this recession is only temporary and in booming marketplaces.
It's great to have fun and to feel positive about abundance, however, when it comes to a recession, you need to dial it back, hold tight, and ride it out until it goes by. Make small changes and budget cuts where you can and it will really add up.
Work It
Take the extra work when you can. You’ll be thankful for it. Personally, I’m in a place where I’m trying to work as much as possible. It’s a bit of a sacrifice, but I would rather feel like we have a buffer rather than living on the edge.
My intention is to stash more cash, as much cash as possible, because investing in recessions have a tendency to make a great return.
Buy Low
The stock market has been in turmoil, and while it’s impossible to predict where the top or the bottom of the market is, if you are cost-averaging into a depressive market, there's only one way it can go once it hits bottom, and that's up.
Pivot
As you work to cut your budget, increase your income, and create a buffer of cash, you need to be prepared to pivot. Have a plan B or a C. Keep in mind ideas of what you would do if you couldn't sustain your current work or lifestyle. Even if you never need to use it, it’s empowering to have that option. Being prepared for it mentally allows you to move on quickly if you need to.
Stay Positive
If you fill your mind with negative media, you’ll create a fear-based perspective. This deep-seated fear can block you from being able to see opportunities and having the vigor or motivation to see what options are available to you. Stay positive and remember that this is only temporary.
I like to visualize what outcome I want to occur with a focus on how I’ll feel mentally, physically, and emotionally. This helps me tap into who I want to show up as, regardless of the market situation, and cultural or global fluctuations.
These can be trying times, but it’s what happens in real life. The best thing you can do is prepare yourself, make good choices, and identify what are the most important things in your life? What is your goal and what actions bring you closer to that goal?
Ultimately, we all want to live a fulfilled life. One that is balanced, at peace, and brings us joy. I believe you can do that through a market correction by simplifying down to what really matters most.