Are you worried about a recession? You cannot control what happens in the economy, but there are certain things you can control. Here are seven strategies for singles to survive a recession.
Strategies For Singles To Survive A Recession
Signs Of A Recession
Are we in a recession? Go Banking Rates lists ten common signs of a recession:
- More people can’t pay their loans.
- Taxes bring in less revenue.
- Rapid increases in fraud rates.
- Oil price shocks.
- Rising interest rates.
- Decreasing home prices and sales.
- Declining prospects for bellwether companies.
- Stock market crashes.
- Unemployment rates drop too low.
- Inversion of the yield curve.
Those are just some common signs to be aware of to determine if we are in a recession. The prices at the grocery stores and gas stations continue to rise. Another option could be that we have an inflationary recession. That would mean that, along with the regular recession signals, we would experience inflation. It would be the worst of both worlds.
7 Ways To Survive A Recession
You want to make sure that you have money saved. Most Americans do not even have $1,000 saved in an emergency fund. You will be ahead of most Americans simply by having money in a savings account. Once you have enough money saved, you can start investing in assets.
Precious Metals As Insurance
Once you are comfortable with the money in your savings account, you can decide to save a percentage of your money in precious metals. Precious metals are a form of financial insurance. It is generally recommended to have ten to fifteen percent of your net worth in precious metals. This is simply a way to diversify outside of a currency and into a hard asset.
Physical precious metals are often considered lifetime investments to be passed down to the next generation. If you want to invest in precious metals that are more liquid, you could invest in precious metals ETFs.
Negotiate A Raise With Your Employer
You could negotiate a raise with your employer. This means they may be unwilling to negotiate with an employee who wants their wage or salary increased. There are seven steps to negotiate a raise:
1. Research data for your current position.
2. Review the company’s financial performance.
3. Reflect and list your achievements.
4. Figure out what your target range is a raise.
5. Prepare a presentation to your employer.
6. Practice your negotiation skills first with your friends and family.
7. Schedule a meeting to negotiate for a raise with your employer.
The difficulty with doing this during a recession is that many employers will look for ways to reduce and cut costs. Employees will often be the first on the chopping block.
Get A Second Or A Third Job
You could get a second or third job to make more money. This may work, but you are still trading your time for money. You can only work so many hours in a day or week.
You may get away working multiple jobs at a time, but eventually, it may negatively affect your health and personal life. You could decide to look into side hustles.
Start A Side Hustle
You could start a side hustle. You could start a side hustle to turn it into a new revenue stream. When looking at side hustles, consider ones you can turn into a passive income stream.
Some everyday side hustles that are active income streams or other jobs include Uber, freelancing, or being a virtual assistant.
Some side hustles that could turn into passive income are starting a YouTube channel, writing a Substack newsletter, or writing eBooks.
Build Passive Income
The beauty of passive income is that it pays you while you sleep. Your paycheck from your employer is active income. You are trading your time for money. You can only work so many hours in a day. It has been found that the average self-made millionaire has a minimum of three passive income streams.
There are many ways to build passive income streams in the Internet Age. You want to learn to play to your strengths. You can then decide if you want to set up a business to be a financial asset to protect your passive income streams.
Start An Online Business
You can start an online business. A business is the ultimate financial asset because you can build it to be as large as you want. You can create as many products and services as you want for customers. You can then pay yourself through your business each month.
You built the business. You can then pay yourself for the hard work to make it once it generates revenue and eventually a profit. Some ways that you create revenue streams for an online business are:
- Advertising on a website, YouTube, or other social media.
- Sell merchandise.
- Sell physical or digital products like PDFs or books.
- You can sell products on a third-party company like Amazon or Etsy.
- You can find ways to earn royalties.
- Provide a consulting or coaching service.
- Sell a premium newsletter and have premium articles on a website.
You are your own limit when you are responsible for a business. You can also find creative ways to make more money with a business.
Secure Single recommends:
- Introduction For Singles On The Different Types Of Savings Accounts
- How Mindset Affects Success
- How To Be Single In 2023
- 15 Habits To Build Wealth For Singles
- 12 Reasons Why Young People Should Not Go To College
It is up to you to take action to prepare for a recession. These are just some strategies for singles to survive a recession. Whether you think there will be a recession or not, it is always a good idea to be prepared. One of the ways to be prepared is to save money and find ways to increase your income.