Preparing for a Recession in 2022 - What to do in a recession

If you're wondering how to go about preparing for a recession, or how to prepare for a recession, then you've come to the right place!

Are we heading into a recession?

Given everything going on, from geopolitical tensions to rising inflation, I don’t know, nobody does, but here are some powerful tips to make you prepare for one.

Other videos:
How to Invest in a Recession: https://youtu.be/21TUtkUC8_M
7% Guaranteed Return I-Bonds: https://youtu.be/BeO255rw9nM

We’re going to tackle everything from spending habits to job security, investments and inflation.

Let’s start with the overarching goal here. Folks, in a recession there is a lot of unknown and a lot of uncertainty. If you want to be able to ride a recession, you need to make sure you preserve your wealth, but more importantly, you want to make sure you can still feed yourself, so income preservation is just as important. So what you’ll want to do, is build your cash positions and maintain your income so whatever happens, whether stocks crash and you want to buy the dip, or you lose your job and need money to survive, you have cash available to do all of that.

Let’s start with the first thing we want to tackle - and that’s our spending. With all the government stimulus we got in 2020 and 2021, we became accustomed to spending money and buying things we don’t need. If you want to preserve your savings, stop being a consumer. This is not the time to be buying a new laptop, or new furniture or a new car unless it is absolutely necessary. Cut down on all those luxuries you were planning on. If you are truly uncertain about your economic wellbeing, your family vacation can wait, your new toys can wait. Every dollar is important right now.

Now let’s talk about job security for those of you that have a job. Again folks, nobody knows what can happen tomorrow. While it’s true there’s a worker shortage, many companies have started a hiring freeze. Many companies are also undergoing heavy layoffs in anticipation of an economic downfall. So what can you do to protect your income? First and foremost, update your resume. This is extremely important, because updating your resume does 2 things:
First, In the event that you get laid off or fired from work, you’ll atleast have your resume updated to be ready to apply that same night. It’ll just make things easier because when the time comes, you’ll have everything ready to go.
Second, it lets you apply elsewhere and you should Absolutely be applying elsewhere even if you are secure at your current job. Folks, salaries are sky high right now. Your current job will NOT give you a 7%+ raise to match the rate of inflation. The only way to get an inflation adjusted salary now is to switch jobs. And even if you love your job, that’s fine, I would recommend you still apply to see what else is out there and also stay current with your experience giving interviews. There’s no harm in that.
I’ll even link down below a sample of my own resume that got me interviews in FAANG, because before that, my applications would simply get ignored.
In addition to updating your resume, the next thing you should do is to secure your existing job until you find another one. You need to give your 110% at work, and stand out from your peers in terms of the value you provide. Basically, try to be in the top 5% of best performers in your organization, so that it’s less likely for you to be let go.
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Now let’s talk investments. I go deep into investments and basically wealth preservation which we talked about earlier, in the video linked above. But just to touch upon it at a high level, in a recession or bear market, you want to move away from assets that are overvalued and into alternatives that can be a guaranteed 7% return investment.

The final point I wanted to touch upon is the elephant in the room and that’s rising inflation. The best way to battle inflation is to increase your income and then to stop buying ish you don’t need. If you stop buying ish you don’t need, and everyone else does the same, aggregate demand will level off and prices will come down. The other thing too, we all know in 2020 when there was a toilet paper crisis. Do you know why? It wasn’t because the roni rona caused a shortage. It was because people were stocking up supply for the months’ ahead - far beyond their needs that resulted in a shortage. We saw the same thing happen with speculation of oil prices recently, people lining up for gas. It’s a self fulfilling prophecy, you think there’s a shortage, so you overstock on goods, then it causes an actual shortage. It’s ridiculous and it’s not necessary. Just buy what you need, stop adding to the herd mentality, stop being the root cause of shortages. Cathie Wood/Elon Musk recession.

Contents -
0:00 - Intro
0:50 - Spending Habits
1:19 - Job Security
3:03 - Investing in a Recession
3:39 - Fighting Inflation

#recession #stockmarket #investing

Видео Preparing for a Recession in 2022 - What to do in a recession канала Mr. Money Mindset