Many Economist predict a recession by year 2020! According to the Washington Post, “More than a third of top economic forecasters now predict a U.S. recession in 2020… and 44 percent of fund managers in the latest Bank of America Merrill Lynch survey expect global growth to slow in the next year, the worst outlook for the world economy since November 2008.”
The current $20 trillion-dollar debt cannot continue at this pace for very long and soon we are going to have to bail out the banks and other financial institutions at the expense of the taxpayers, again.
2020 will also be the year of our next presidential election which will lead to even more uncertainty in the marketplace. Investors will definitely be on their p’s and q’s, converting their stocks into bonds and other short-term derivatives causing further damage to stock prices, ETFs and mutual funds.
Just like the Great Recession of 2008, expect higher than normal unemployment and foreclosure rates. The media will only report on news that further expounds on the current state of the economy and the overall mood of citizens will be a direct reflection of the madness…
But this doesn’t have to be you if you start now…
Ask yourself, what are you doing to protect yourself from the next recession?
5 Ways to Prepare For A Recession:
- Increase your cash on hand – Start stashing away a massive emergency fund. At least 6 months of expenses are recommended. Come up with a plan to set 10-40% of your income in an account that isn’t easy to touch like a reputable online bank.
- Build a great credit score – Having a great score can help you fight interest rate hikes during a recession and allow you to take advantage of things like buying foreclosures and store liquidations without using your hard-saved cash. A low score will hurt you even more in an uncertain market because lenders will be more strict on handing out money and your variable rate loans payments will increase.
- Eliminate old debt – Debt is the only bill you can pay off! Having extra bills to pay during a recession will only hurt your chances to stay ahead so getting rid of old debts before a recession is key! Eliminating debt can also help your credit score!
- Diversify your investments – If all of your investments are in stock, prepare by converting them to cash, short-term derivatives or even cryptocurrency. As the U.S. dollar decreases in value due to investors pulling out of the market things like foreign markets and cryptocurrency will be their “go to”. This means an increase in the demand and price of cryptocurrencies like Bitcoin and Ethereum. If you get in ahead of the price increase, your portfolio will sustain massive gains!
- Diversify your income – In a country where 49% of us are currently living paycheck to paycheck and 64% do not have a secondary sources of income, a recession is a dangerous time. Unemployment peaked at 10% after the last recession. As companies cut expenses, most workers will be faced with either reduced hours or loss of their position entirely. To diversify your income you should start a business or join a network marketing company. As people search for non-existent jobs in the marketplace, network marketing will be the go-to. People will be looking to make their last paycheck count and will be more open to opportunities they once put on the back-burner! People that are already in place will benefit from the increased volume as new team members join their organization.
At YGM our motto is Financial Freedom is a Mindset. It not only takes strategy but discipline and a team based environment to achieve financial success. Part of that strategy is recognizing economic trends and opportunities so that we will not be capitalized on but instead we can capitalize.
Learn how to increase your cashflow without working more hours, how to get a higher credit score, how to invest in cryptocurrencies and more! Get started today with our Free YGM membership: Here!
You don’t have to be a victim of the economy if you prepare, plan and stay one step ahead! Start securing your family’s finances today!