although this may appear contradictory to some it's still possible to accumulate money during
a downturn experts believe that recessions are one of the best times to build personal wealth what's
the procedure for accomplishing this to find out how to generate wealth during a recession we turn
to information from personal finance professionals entrepreneurs educators and business leaders
what they had to say about it is covered in today's video 20. open cds no we're not
referring to compact disks with as little as 500 you can usually open a certificate of deposit
cd you'll start earning interest on your money as a result of this however opening a cd has
other advantages as well the money is locked up in cds and you can't touch it without incurring a
financial penalty so it keeps you from touching it self-discipline is essentially self-imposed
normally you deposit funds into six-month cds and every six months they combine your earnings and
start a new cd with a greater interest rate when looking for the finest cds with the best interest
rates bank rate is a good place to start it allows you to personalize the location by entering your
zip code and the site allows you to select deposit quantities and the length of the cd as well as
provide a list of local banks and credit unions in your area 19. learn to invest investing in
your wealth provides compound returns allowing you to double or even quadruple your savings over time
a recession is a perfect moment to start investing since you can acquire stocks at a bargain
and sell when the economy recovers if you're unsure about where to invest choose a free only
fiduciary financial advisor that will charge you for a short hourly session to help you get
started technology driven robo investment advisors such as betterment and wealthfront offer low-cost
investment management that automates investment selection as well as the monthly portfolio
rebalancing procedure required to construct a healthy investment portfolio as a beginner
18. search for heavily discounted stocks short-term stock market decisions are
frequently prompted by emotion and recessions lead to a lot of emotional decision-making when sellers
panic and liquidate stock prices drop for buyers recessions are a terrific moment for long-term
investors to increase their stock portfolios if you normally buy 10 shares for 100 a 30 stock
market loss means you may now acquire 14 shares for the same price 17. buy silver purchasing
precious metals such as silver is another excellent approach to increase wealth during
a downturn silver is inexpensive in comparison to gold and once you have it no one can take it away
if you own a stock bond or mutual fund and the company goes bankrupt as this happens regularly
during recessions you're left with nothing before you buy do your homework and make sure you're
getting 0.9999 pure silver bullion rounds or bars at or near the spot price or current pricing
16. buy gold another reliable approach to gain wealth as a recession deepens is to buy gold
at the start of one when the economy suffers a downturn most economies and investors resort to
gold as a safe haven for their money as a result the valuable metal becomes rare causing its value
to skyrocket always keep an eye on the clock when it comes to gold purchases timing is important
invest in gold only when a recession or other global financial catastrophe is just beginning
when kovin 19 was labeled a global epidemic those of us who are familiar with the medal acquired
some the medal is currently at its highest price ever 15. invest using the dollar cost averaging
approach dollar cost averaging is a protracted investment strategy in which a certain amount of
money is invested in the same fund or company at regular periods such as monthly it's an investment
plan that allows you to buy assets with a specific quantity of money over a certain period of time
allowing you to buy more shares when the price is low and fewer shares when the price is high
you invest the same amount of money every month you can participate in different share prices
during different investing cycles if you use this strategy finally you may eliminate the
urge or knee jerk reaction to timing the market by investing frequently and using dollar cost
averaging 14. don't forget about your 401k plan at work many other financial advisors
have said the same thing a recession is an excellent time to begin investing
since it allows you to acquire at a lower price another method to take advantage of this
circumstance is to enroll in your company's 401k plan which has no minimum investment to begin with
it's a good idea to start contributing to your 401k if your employer gives a match through the
employer's match you'll get a 100 return on your money right away in addition your contributions
will lower your taxable income resulting in lower taxes with the irs at the end of the year
13. set up passive income streams workers in the service industry are frequently the hardest hit
financially during a recession if you work from 8 am to 5 pm you risk losing your job
you may continue to accumulate wealth even if the economy's in a slump if you construct a passive
income stream the physical economy is unlikely to affect your passive streams selling stock pictures
online buying stocks and affiliate advertising are just a few of the profitable passive income
opportunities we recommend affiliate marketing often known as affiliate advertising is the
practice of earning commissions by promoting other people's business services or products
12 real estate investing during recessions the majority of real estate value is created
you could seek a small investment property such as a duplex with decent bones but a distressed
seller if you were just starting out and had a little money to invest it's a good idea to
network with realtors who specialize in this field you want something near a government or
university campus it's located in a fairly economically stable community with decent
solid blue-collar jobs and where the majority of the work can be done with your own hands
11. to help your business grow take advantage of lower interest rates recessions can be a
fantastic time to expand your firm because financing rates are often at historic lows
during recessions banks will drop their rates to inconceivable levels due to limited demand for
loans from the general public take advantage of this and invest the money in something that will
pay out more than the fee interest this will turn into a good source of income on its own
now if you've been getting value from this video pause this video right now hit the like button and
go ahead and click subscribe that way you'll be notified of all of our videos just like this one
done great let's continue 10. consider it from a business standpoint the products you buy must pay
for themselves or save you money in some other way if you buy a house instead of renting for example
you can save money in addition to real estate gains examine what you've bought in the last
six months and evaluate your spending patterns as well as the worth of what you're buying 9.
online you can sell items that are no longer needed by selling your old items online you may
turn them into cash take note of any items in your house or business that aren't being used
jewelry electrical equipment clothing and furniture are examples of this
various platforms such as ebay tradesy and real real are excellent for monetizing secondhand items
8. rent a space do you have any spare room in your house consider renting out a room to get some
extra cash during the recession you can rent out a room to supplement your income it will contribute
to the creation of a new revenue stream while also lowering the expenses of power bills and taxes
seven your mortgage can be refinanced a downturn in the economy can be an excellent
time to refinance your mortgage or other debts for which you're paying interest you can save money
and time by taking this step in fact paying off debt with a high interest rate has been
demonstrated to provide one of the best returns on investment implying that finding ways to pay off
debt or cut interest is one of the best methods to grow wealth especially during a recession 6.
profit from expense cutting opportunities you should focus on where you can save money and
minimize costs to actually grow wealth during a recession fortunately a recession provides
many opportunities to save a significant amount of money allowing you to accumulate substantial
wealth many firms for example provide price cuts and discounts on their goods and services as a
customer take advantage of this time to save money by taking advantage of these kinds of bargains
five pay down debt debt management is necessary for building wealth having a lot of debt will
make it difficult for you to generate wealth and will cost you money and interest fees
some obligations such as mortgages are acceptable and can help you grow wealth have a plan in place
if you're having trouble paying off credit card debt or loans when attempting to pay
down debt and accumulate money it's critical to consider how damaging compound interest may be
if you only pay the bare minimums each month your debt may expand due to interest which in
turn generates more interest you should instead pay as much as you can toward high interest debt
each month to break the pattern 4. maintaining and developing business relationships even in
a downturn one of the most important truths to remember is that opportunity comes to those who
seek it maintaining relationships with business contacts who might potentially connect you with
jobs or other vital money-making chances is more crucial than ever when opportunities are scarce in
business friendships you must be proactive rather than reactive when it comes to personal friends
it's simple to reconnect after a long absence but it's a different story when it comes to business
that downtime from other business professionals may allow another person in your niche or industry
to infiltrate your territory so who will your ally advise them to first if and when
a business opportunity arises they've made a new friend three make an investment in yourself
investing in yourself during a recession is a last albeit more difficult approach to develop
long-term prosperity if you've recently lost your work this might be a good time to consider taking
a class to add to your resume's credentials or maybe returning to school to acquire a degree
consider the current recession as motivation you can utilize it to get your master's degree
for example and we guarantee it will boost your employability and earning capacity in the long run
two now is the time to budget for a large purchase and save for it later
regrettably few people are unaffected by a recession businesses that were formerly thriving
may find themselves in severe need of fresh customers and revenue your local contractor is
no exception if you plan and save for a major home improvement project now you may be able to save a
lot of money later on by employing contractors who are prepared to work for less this advice is also
applicable to other major purchases when sales are slow automobile dealerships for example may
be more inclined to haggle and resorts may lower prices simply to keep guests and revenue coming in
1. prepare yourself for a new job is your job something you despise doing
even if you do if the salary is good and the position is secure you may feel forced to stay put
even so it's never a bad idea to have a fantasy so start thinking about what you'd like to do instead
learn as much as you can about new career options until you find one that suits you
if the new job demands education get your ducks in a row check into local or online
schools to save money and be ready to pounce of the economy tanks and you're laid off
employers will be less likely to hire during a recession instead of fighting the wave can you
ride it by returning to school and training for a new vocation with any luck you'll graduate with a
fresh set of skills and be ready to work as soon as the economy picks up well there you have it
thank you all so much for watching give this video a thumbs up if you haven't and subscribe
if you're new to the channel with that said have a good one and i'll see you all in the next one