Without a doubt, 2022 has been a rough year for most Americans.
At least it has been for me.
I make a 6-figure salary, co-own a few successful small businesses, and still found it hard to save money and invest for my future and my kid’s future in 2022.
That’s why I personally put together a list of 5 things I have done to ultimately prepare for a coming recession.
Is a recession coming? I don’t know for sure (and I’m not a financial expert), but many are saying that it’s bound to happen.
Especially with inflation, gas prices, and home values in this current market.
Here are 5 things I have personally done to prepare:
- Maximize credit score and take advantage of credit card points. Excellent credit will allow you to take advantage of recession heightened sales incentives and lower interest rates. Both borrowing and buying become cheaper in a recession. This year alone I have received over $5k back in credit points to claim as cash or put towards travel. IMPORTNANT: I ONLY use credit cards for points and improving my credit score BUT I always pay off my entire balance before the payment is due. I recommend paying it weekly (or bi-weekly if that’s how you get paid) to ensure the total balance doesn’t sneak up on you.
- Put cash aside. Cash is King during a recession. When I say this, I mean not only to increase your savings in the bank but literally save cash some at home for any emergency. Many people don’t have cash at home, but I prefer to have $3-$5k in a small safe. Put it there and forget about it.
- Get out of debt. I know this is a no-brainer but it’s important. High interest or even lower interest adds up and can cause stress when you are strapped for cash. And this could easily happen if a recession affects your job. It doesn’t make sense to have a large amount of savings in the bank if you are paying high interest on anything.
- Go with your gut. I have made some wrong decisions in my life (personally and financially) and most of the time my GUT told me not to… And I ignored my gut for different reasons. I started truly listening to myself this year, more than ever, and I am happier, better off financially, less stressed, and have more time to enjoy with my family. When times get hard, whether it’s due to health issues, finances due to inflation, etc… happiness and contentment is key.
- Start a side hustle that you ENJOY. I like to be transparent in life with my wife, my kids, and also in my career… and in writing this article. I started this website as a “side hustle” to generate some extra cash flow while at the same time helping people to create their own Daily Wealth. But I have a few others as well that I will share with you at a later time. I’ll also offer my personal advice in how you can do the same.
All I ask is, if you are anything like me and you want to be in more control of your savings, retirement, and investments… please join my email list, Daily Wealth Insider, below.
You’ll get daily financial news, investment tips, and experiences from my personal journey that I promise will not disappoint. If they do, you can simply unsubscribe, and I’ll wish you the best in your journey ahead.
I’ll also immediately send you a special report I just put together: 5 Things I Have Done to Fight Inflation.
By submitting your email address, you give Daily Wealth Insider permission to email the report to your inbox as well as send ongoing market updates and hand-picked marketing offers that we think will interest you. Your privacy and security are paramount to us. We will never share your email address, and you can unsubscribe at any time. To review our privacy policy, click here.