If you’ve been reading the news, one of the biggest topics now is probably inflation + recession.
We’re starting to see the slowdown in economic growth in the post Covid era.
Now, if you’re part of an older crowd… you might be familiar with recession.
Having gone through the 2008 financial crisis, you might be a little more prepared for this one.
As you might know, people and companies behave very differently during a recession.
- People tend to spend less.
- Companies tend to be stricter with their budgets.
- This means that, like it or not, buying behavior will change.
And because buying behaviour determines trends, that will change too.
If you’d like a head-start over your competition, I’m gonna share how you can leverage this recession to build your wealth.
Because in WYODC, we all aim to Write Our Own Dang Cheque, regardless of what the circumstances are…
And this is exactly why I’d like to share 3 ethical, yet unorthodox methods to help you thrive…
Here are 3 principles to stay ahead of recession:
1) Focus on CREATING cash flow
Save as much money as you can.
Have a wartime mindset which means….
The question you need to ask yourself is:
“How can I survive in the next 1-2 years being as frugal as possible?”
Cut down unnecessary expenses so you can preserve your cash flows for when things get worse.
This is the crucial time to take on more deals to increase your income generation. So find ways to carve you as many income streams as possible.
Currently, Kenneth has around 5 streams of income and is looking to diversify even further.
2) Buy up assets on the CHEAP
If you have excess funds (i.e. 6 months to a year of emergency funds), you can start investing in blue chip stocks like Apple, Amazon or cryptocurrencies i.e. Bitcoin, Ethereum.
These assets are substantially off their All-Time-Highs.
These assets can withstand spikes due to their values and not deteriorate as quickly compared to speculative stocks or alt coins.
Besides the stability over time, this will provide some good profits if you buy on the dip.
But bear in mind,
You would need to have a 3 to 5 years holding power on your investments during a bear market.
3) Focus on the HOT markets
During a recession, money is redirected to certain markets.
If you put money in commodities last year, you’ll be making a lot of money now.
But if you put money in tech last year, you’ll be at a loss.
Your tactical strategy is to know which hot markets are attracting the moolah.
Life’s too short for uphill battles.
So put yourself in winning situations.
Do you want some good tips?
(Hint… hint… )
Kenneth will be focusing on the following markets in the coming years:
#1 Business Opportunity
Last year, we saw the Great Resignation where an unprecedented number of people quit their job.
That said, these people would still need to put bread on the table…
Because of this, they are highly likely to pursue alternative business opportunities like eCommerce or online businesses.
Hence, biz opp is a great market in a recession.
#2 Mental health
As the world faces its most challenging times during a recession… in addition to mass shooting, war, famine, etc…
Mental health will be one of these markets that’s increasing in demand — due to people struggling with their emotions like anxiety, fear, depression.
#3 Web 3.0
With blockchain technology, Web 3.0 is becoming even more powerful and beneficial to society and business in the virtual world.
This will be a long term game changer with cryptocurrency, Metaverse, NFT providing a new way of doing business, investing, socializing, and more.
If you are a business owner, copywriter or investor, these three markets represent some potential goldmines for you and your business.
Let’s be prepared and embrace what’s coming by continuing to write our own damn cheque!
That’s all I have for this week.
P.S. In the next few weeks, Kenneth is going to share how to use the Holy Grail to capitalise on this trend and thrive even in recessionary times.
Let me know if you’re excited for what he’s offering. 🙂