In today's video, we are talking about how to make money investing
during a recession.
People may feel anxious about investing their money during a recession
when a lot of things are down.
A lot of people may be nervous about investing during a recession, but
history has shown us that there are great opportunities that we can
take advantage of during a recession.
I'm going to be sharing my most valuable tips on how to make money
investing in a recession.
These are things that have helped me grow my net worth to over a
million dollars.
The first item I wanna talk about in order to make money investing
during a recession is to diversify your investments.
This is what I have done.
I have diversified my investments.
All that means is that you are investing in different types of
investments and it doesn't have to be different asset classes
altogether.
For example, the stock market and real estate, you can invest in just
the stock market, but diversify in your stock market investments.
For example, you can buy an index fund, which has a whole bunch of
companies or stocks inside of just the one index fund.
You can also buy stocks and bonds, or you can even invest in REITs in
the stock market.
Real estate investment trusts.
There are a number of different investments you can make in the stock
market in order to diversify your investments.
But if you are holding all of your investments in one single company,
that is very risky, especially during a recession, because if that
company isn't going to pull through the recession, then you've lost
all of your investment.
I personally like investing in an index fund.
If you want to know which one that is, I have another video which I
will leave a link to above.
You can check that out later on.
And then I also have a few different individual stocks.
And I'm not currently investing in bonds because I don't mind having
that risk of just being in stocks because I'm not looking to pull my
money out anytime soon.
And I personally do invest in actual physical properties in real
estate.
So I'm not just investing in one physical property and relying on that
property to create all of my income for me, I have multiple properties
and my stock market investments, so I'm able to diversify my
investments that way.
And this is really important during a recession because if things are
going down, if our investments in the stock market are dropping, then
we can have our real estate investments.
The cashflow we are collecting every month from renters that can help
offset the drops in the stock market.
And if you're not investing in both real estate and the stock market,
just make sure that you do not invest in only one company because that
is super risky during a recession.
Going along with investing in the stock market, tip number two is to
take advantage of low prices on stock market investments.
Since it is a recession, we are going to see a drop in the stock
market.
And as long as we feel comfortable that the companies or the funds we
are investing in are going to make it through the recession, we can
definitely stock up while things are on sale.
We want to make sure that we have that long-term perspective that
we're not expecting to get rich overnight because we have no idea how
long the recession is going to last.
The stock market investments could drop even further or they could
come back up very quickly.
We just aren't sure.
But if we have that long-term mindset, then we are going to make a lot
better decisions with our investments and we're not going to be so
scared if the investments continue to drop.
And I was able to take advantage of buying things when they were on
sale during 2020 when something happened and everything in the stock
market dropped drastically, I put some money in, but I knew what I was
investing in would make it over the long term.
I was able to capitalize on that drop in the stock market.
And speaking of the stock market, if you are interested in investing
in the stock market but aren't really sure how to do that, I have a
free masterclass about how to invest in the stock market very simply
and how you can have the option to work with me.
I will leave a link below in the description.
You can click on that and watch the free masterclass.
And this way you will know exactly how to take advantage of a
recession.
And then the third way on how to make money investing during a
recession is to look for distressed assets.
We can look for the opportunities that are currently out there during
a recession.
There could be a lot of foreclosed properties or properties that are
going to be foreclosed on and we could help someone out while making
money ourselves.
There is a lot of risk investing in distressed assets, but we can take
a look at that risk and make sure that we are comfortable with that
and make sure that we have an exit strategy when we are ready, we want
to make sure and do our research, do our homework, and feel
comfortable with what we are investing in.
But during a recession, it is a good time to look for those distressed
assets.
And then item number four is to invest in yourself.
This way you can gain knowledge and skills and enhance your own
earning potential and have financial resilience.
During a recession usually things are slower, so you could have extra
time to take a certain course or get a certain certification in order
to boost your own skills and increase that earning potential.
Or of course, you can be educating yourself on finances or on
investing.
And we want to make sure that we are doing self care during a
recession because it can be a very stressful time.
We want to make sure that we are taking care of our own health and
making sure that we have a really strong mindset.
Still keeping that abundance mindset, especially when things around us
may not seem so abundant.
And if you do want help creating that abundance mindset, I do have
another video that I created.
I will leave a link above.
You can click on that and check it out later on.
Comment below and tell me one way you are investing in yourself.
Some different ways that I've been able to invest in myself is to sign
up for coaching and also sign up for a course and read books or listen
to books.
And speaking of books, I do have my book you will be financially free
where I do talk about mindset and investing your money and how you
actually can become financially free.
So I will leave a link to my book below in the description.
You can click on that and get your own copy.
And then tip number five is to stay disciplined and be patient.
We want to make sure that we are being patient with ourselves and with
our money, especially our investments during a recession because we
are going to see our investments drop significantly and we want to be
patient and realize they are going to continue to rise over the long
term even though they are dropping in the short term.
And we want to continue with our investing, keep that discipline.
We don't want to become fearful and pull all of our investments out or
completely stop investing.
We want to stay the course and keep that long-term perspective.
I know this has definitely helped me.
I have seen my investments drop significantly, but I know they're
going to come back up, so I leave them alone and I continue to invest
my money even when the stock market is down that way I'm taking
advantage of dollar cost averaging, which means I continue to invest
in the same asset no matter the price.
And by doing so, sometimes I buy when it's low, sometimes I buy when
it's high.
But dollar cost averaging means that it averages out that cost over
time.
So while yes, a recession can be scary and there is some risk with
investing, we can do our own homework.
We can remember to be patient and stay disciplined and we can take
advantage of the recession and make our money work for us, and we can
continue to make money during the recession.
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Thanks so much for watching.
I'll see you in the next video.