By Leroy Ferrao- Founder of Leroy Ferrao School & Master Digital Life Coach
SMART STRATEGY NO:18 FOR UNPRECEDENTED TIMES IN 2022
The next recession is predicted by experts to hit in 2023, and while that may seem like a long way off, it’s never too early to start preparing. There are a number of things you can do to recession-proof yourself, and your business. Here are five ways to help you weather the storm.
#1.Take Calculated Risks
In business, there are many calculated risk-takers who understand when to act and when to back off. The reality is that not everyone is suited for entrepreneurship; frequently, those who are successful balance caution and initiative well. Now is not the time to establish a business if you cannot afford to lose your investment or if you plan to take out loans to fund it. However, if you are establishing a zero-investment firm online, this could be an excellent time to enter the market as many companies will go out of business at this time, giving you the chance to leave your stamp on the industry for the future.
It is advised for individuals who are employed to remain in their current positions, advance professionally, and receive a promotion as opposed to accepting a job offer with a 20 percent pay raise and having to start the probationary period all over again during a downturn.
#2. Invest in Financial Education
To succeed financially and thrive, financial literacy is a crucial ability to acquire. Understanding budgeting, debt management, saving, and investing is the simplest approach to start becoming financially educated. It will safeguard you and your family in case of emergencies in addition to assisting you in long-term wealth building. Additionally, it will assist you in choosing how to invest your money so that you may get a return on your investment and make sure it’s safe.
#3.Save Cash –Cash is King
Cash is king. When a recession strikes, you’ll need funds so you can take advantage of chances. Don’t put all of your eggs in one basket, though. Silver and gold can be used to diversify your portfolio. Experts advise investing 5–10% of your capital in precious metals. As the cost of living rises and you are required to make difficult choices, cash will come in useful. It is preferable to have liquid funds on hand to pay for necessities as opposed to needing to liquidate assets in order to survive. When the economy slacks off, having a little extra cash on hand will be useful.
Stop Buying. Delay replacing or updating your clothing or appliances. Are you able to live without a car? Can I grow vegetables in a garden? Ask yourself, “Do I truly need this? ” before making a purchase. How much can I afford? Save cash. Cash is King.
#4.Avoid major real estate deals
Hold on to your decision if you’re going to buy a home because, in general, prices will decline over the next 12 to 24 months. However, it is prudent to continue renting because real estate is currently overpriced and you may anticipate that it will become more affordable in the future. Homes were selling for pennies on the dollar in 2008 when the US real estate market crashed. If you had the money, you could buy and keep such places. You would have become quite wealthy over the past few years. This is due to the fact that those of us who can afford it will have greater assets after the crisis is over.
#5.Protect your career
Although there is no employment that is recession-proof, you may significantly boost your safety during a downturn in the economy by adopting these steps. Jobs in public utility services, law enforcement, education, and medical typically survive recessions. Toilet paper and toothpaste manufacturers typically continue to do well even during economic downturns. If you are looking for a new job, it’s important to build up your technical skills as well as your soft skills. Having a core set of transferable skills that are useful in most industries or positions will give your career resilience during an economic downturn. Make sure you create a list of these skills now before you need them so that you are ready for when a recession hits. Keep a positive outlook on your work. Even if your job is not what you’d like to do, it still provides you with a living. Make an effort to be dependable and diligent. This may assist you in maintaining your current position or, at the absolute least, make it simpler for you to get employment in the future.
If you’re seeking employment,
Become the leader. Even if a position has not been announced, contact any companies you think might have work for you or submit an application on their websites and LinkedIn. Inform your loved ones that you are hunting for employment.
Be flexible. You won’t likely discover a job that satisfies all of your requirements.
In conclusion,
Future challenges are only going to get more difficult. The situation will worsen. However, if you follow the aforementioned measures, you will be in a far better position than the average populace, who are unaware of what is happening and unsure of what to do to defend themselves from the global financial storm. Download the Leroy Ferrao School app or visit the website www.leroyferraoschool.com for more information and join the community if you want to receive personalised coaching from the Master Digital Life Coach. After installing the app or establishing a social network connection with him, you may even Whatsapp him directly. Be courageous and use winning tactics to combat the chaos.
LEGAL DISCLAIMER
The author and publisher of www.leroyferrao.com and the accompanying materials have used their best efforts in preparing www.leroyferrao.com materials. The author and publisher make no representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this www.leroyferrao.com. The information contained in www.leroyferrao.com is strictly for educational purposes. Therefore, if you wish to apply ideas contained in www.leroyferrao.com, you are taking full responsibility for your actions.