How To Prepare For The NEXT Recession

https://www.youtube.com/watch?v=MTUetntAV2U You may think it's a bit early to be preparing for the next recession while we are currently in one. However, there are things you can be doing now to set yourself up so you never have to feel like this again when the next recession comes. 1. Keep Your Expenses Low 2. Start To Build Up a Buffer Fund 3. Pay Off Your Bad Debt 4. Look At Ways To Increase Your Income 5. Create Multiple Streams of Income 6. Invest In Income Producing Assets 7. Start Educating Yourself and Expanding Your Skills Recession Videos 1 Year Ago How I'm Preparing For The Next Recession How To Invest In Property During a Recession Recommended Videos: Simple Steps To Budget and Save Money IMMEDIATELY The 2 Year Financial Freedom Strategy Transcription: Ryan 0:00you may think it's a little early to start talking about how to set yourself up for the next recession while we're in the recession that we're currently going through but there are things that you can be doing right now in the next few months in the next few years to set yourself up so you never have to feel like this again when the next recession comes when something happens in the future as it inevitably will that will affect the economy so in this episode i want to talk about some of the things that i'm personally doing to set myself up so that i'm in a great financial position when the next recession hits and rather than worrying about my finances during the recession i can be out there looking for opportunities and ways to grow my wealth because everyone knows that a recession can be actually be one of the best times to grow your wealth if you're in a position to do it so hey i'm ryan from onproperty helping you achieve financial freedom and while the trigger for this recession caught everyone by surprise and no one was expecting that we were predicting that a recession would come in the near future and i was creating videos about this over a year ago and i'll link up to some of them down below if you want to check out them about how i was preparing for the recession that was coming and so what can we do now while we're in a recession and as we move through and out of this recession to prepare ourselves so we never have to feel like this again in the next recession and i think it's really important to note that while looking at the economy and looking at cycles and how things go up and down is really interesting and really important to do when you're making investment decisions it's important not to get frozen by that and to do absolutely nothing because at the end of the day what you care about is you and your finances and how you're going because even when a recession hits a lot of people are still fine so what can we do so you're one of those people so the first thing that i'm doing and that you might want to do as well is to actually keep your expenses low even as we come out of this recession as your job looks steady and everything looks fine don't go out there and lavishly spend all your money on things that don't add value to your life and don't improve your wealth long term so keep those expenses low that could be rent or mortgage it could be cars it could be the things that you spend money on one thing that this situation has really helped a lot of us do is actually work out ways that we can be more frugal and save money in our lives so for me that's making a lot of coffee from home i still love coffee i still have it every single day but i'm making it from home and really enjoying that as well as making more dinners from home and learning about things that i can make and not a great cook they're also just looking at ways to save money in life with fashion to save money in life with just where i was lavishly spending money where i didn't even realize even just like eating out and now i don't want to eat out and saving so much money not eating out so learning ways to save expenses in your life has been really good and as we move through this keep those expenses low so as you increase your income that extra income can go to actually help you better set up for the next recession and take advantage of that so focus on keeping your expenses low you know don't just eat baked beans every single day but live frugally and do it in a way that makes you happy and i've got a video on budgeting if you want to learn how to budget if you don't know how to do that so i'll link up to that video down below the second thing to do is to start to build up a buffer in your life so obviously the trigger for this recession was the COVID-19 virus that causes kind of the whole world to go into shutdown and how long that shutdown will last we don't know but for some people that's going to mean no income or limited income or relying on the government for months at a time maybe three six maybe even 12 months however if you're one of the people who actually built a buffer and had a buffer of savings in place then you can more easily weather this storm maybe you've got a buffer of three months income in place or maybe you've got six grand would be great to have six months income but let's say you got three during this time i'm kind of in a situation where i had about a one to two month buffer so definitely not massive at all let's say your income drops but doesn't drop to zero let's say your income halves well that three month buffer can get stretched out to six months because you're only using half a month each and every month so that can actually buy you six months to see you through the bottom of this recession and get you in a position where you can actually not need to raw from that anymore you can achieve so much in six months so building up that buffer over time you might want to start doing that slowly by paying yourself first or however it is that you want to do it one of the ways that i'm going to be looking at doing this is through generating little bits of extra income in my life through selling things and stuff like that and actually putting that aside and into a buffer so i'm looking at ways to do that i'm also increasing my income through my business to pay off debt and then we'll start building up a bigger buffer from there but yeah look at ways to build up a buffer in your life so that you can actually be prepared for when things like this strike i guess i never really saw the value in that because i'd never lived through a recession and the idea of your income just suddenly going to zero for no reason didn't really register with me and so i didn't understand the value of that and having three to six months money just put aside seemed wasteful to me but now i can really see the value in that so focus on building up a buffer next thing is to pay off that bad debt in your life bad debt eats you alive during a recession and i'm definitely feeling the effects of that i had bad debt in my life that i was focusing on paying off the recession hit a bit earlier than i had wanted it to hit i was focused on paying that off i was working hard to pay that off i still am i'm in the fortunate position where my income hasn't dropped so much that i can't keep paying it so paying it off but it eats you alive especially when your income is dropping and so if you can actually wipe that out of your life so you don't have that cashflow burden of having to pay the interest and pay the debt it can actually put you in a much better position cash flow wise because all you have to think about is what you need to survive to keep a roof over your head to keep food on the table you don't need to worry about these debts eating you alive and people coming after you in order to get the debts repaid or how that may affect your credit or what may happen you won't have to have that stress so pay off those bad debts in your life because that's going to improve your cash flow and stop eating you alive then it becomes too i guess what i actually think of the more important things to set yourself up for the next recession and that's looking at ways to actually increase your income look at ways to increase your income in the immediate term right now while we're in the depths of the recession that may be hard you might not be able to get a pay rise through your job you may not be able to move to a higher paying job right now but in a year or in two years as the economy recovers that may be an opportunity for you to actually move across to another job and to get a pay rise from that to get a pay rise from your own work another great thing to do is to look at side hustles and ways that you can make extra money on the side so many people when they're budgeting they focus on simply okay how can i live within my means which is obviously very important but once you've done that you need to think about how can i expand by means how can i actually go out there and make more money through a side hustle that could be using the skills that you use in your regular job that could be through creating a side business could be creating online businesses which is what i do to increase your income there take that spare time that you would be using playing games on your phone or watching tv and actually invest some of that time into a side hustle into increasing your income so that you can pay off debt build up the buffer and start to invest so look at ways to increase your income also look at ways to diversify your income and ways to get multiple income streams in your life number six is to invest in income producing assets which is one way of diversifying your income if you invest in stocks that pay dividends then you've diversified your income because you've got now you've got your job you've got your side hustle or business and you've got stocks paying dividends if you invest in property and build granny flats like we talked about in the two years strategy we can set yourself up for financial freedom in two years by buying two properties bu...