When the recession hits.
When the stock market crashes.
These seem like hot button topics lately.
Whether you're watching the news, watching videos on YouTube, or you're simply scrolling social media, everyone is trying to convince you the next crash is coming any day now.
They're not doing that because they know something you & I don't, & they're simply trying to warn us.
They're doing it because they want to amplify our fear so they can sell us on their expertise. Maybe they're pitching a product that will help you save money, maybe they have an affiliate link to a brokerage they want you to invest in, or maybe they're simply trying to create a viral video on YouTube.
Their incentive doesn't matter.
What does matter is that you don't buy into the hype.
I'm a big fan in NOT spending your finite attention & energy on things you have no (or very little) control over.
Instead, spend your energy & attention on the things you can control. You'll get better results & you'll have a lot less stress doing so.
So, because no one knows when the next market crash or recession will hit...& because you can't do anything about when it comes anyway, you shouldn't worry about it.
It's wasted energy.
What you CAN control is how you live your live now so you can be prepared for when it does come (whether that's tomorrow or a decade from now).
What you CAN control is how you respond.
Here are 3 simple things you can do to prepare for the next market crash/recession & better respond when they do.
1)Prepared by staying more liquid: Have more cash in the bank & less invested. That way you can go on the offensive when the recession does hit. Because the reality is, a recession is an OPPORTUNITY. When most people are contracting you should be focused on expanding & seizing the moment.
2)Decrease your expenses & your liabilities to increase your cashflow every month. With extra cashflow you'll be more financially secure throughout any economic downturn & you'll be able to implement step 3 more effectively. That might mean anything from spending less, to refinancing a car loan, to moving back in with parents or relatives.
3)Buy up Assets for pennies on the dollar. Two easy & proven ways to do this are to invest in blue chip stocks you believe in long term & buy into index funds that have dropped significantly in price because of the market crash. These same assets will be worth 10X when the market returns to normal, as it always does.
And there you have it, 3 simple steps to better prepare & respond to a recession....whenever that may be.
Don't buy into the hype. Don't cower in your home listening to all these "pundits" trying to scare you. They're just trying to drum up attention.
Instead, focus on what you can control today & how you can respond quickly in the future.
If you'd like to watch the video explanation of this, you can do so directly below.