The economy ebbs and flows. It’s a fact of our life and we can either sink or swim during this time. These times do not need to be frightening, especially if you’re prepared. Even if you’re not, being able to think clearly and creatively and willing to learn and grow you can thrive during an economic recession. Some entrepreneurs can easily profit from an economic recession. Here are a few simple tips to get you started.
1. Read and learn how surviving an economic recession. Go to the library or bookstore and buy/borrow the book: “Financial Reckoning Day: Surviving the Soft Depression of the 21st Century” by William Bonner and “Conquer the Crash: You Can Survive and Prosper in a Deflationary Depression” by Robert R. Prechter.
2. See if your current job is in a critical sector to avoide layoff during the recession. Most jobs in health care, food production and supply, government and military jobs are safe bets. Avoid retail and construction or any area that can easily do without you.
3. Make a list of your spending habits and alter them to only include necessitates. Use the excess money that you usually spend to create an emergency cash fund. Also, learn how to do more things for yourself without hiring or paying others to do them for you.
4. Find a niche that is making money and you are interested in and get involved. Even if people are fearful and money is tight there is still money to be made if you have skills or services that people need. Grow food to sell, learn to do house repairs, rent out space, coach others with financial planning, learn or use a skill and monetize it.
5. Do not take on additional debt during an economic recession. You want to be able to survive, but the goal is to thrive. If you learn to live on less money (by placing it in that emergency cash fund mentioned earlier) than as the economy picks up you’ll make more money quicker with the skills you learned during the downturn.