It’s inevitable…we’re going to see a recession SOMETIME in the future. Here’s how you can prepare and still make a profit at the same time, enjoy! Add me on Snapchat/Instagram: GPStephan
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NUMBER ONE: The first thing is that you’ll want to pay down any high interest debt. Now this is something you should do REGARDLESS of the market conditions…in a great economy, pay down high interest debt. In a recession, DEFINITELY pay down high interest debt. The LAST thing you need is high interest debt bogging you down.
NUMBER TWO: Pay down variable rate debt! Any time you have variable rate debt, you’re really at the mercy of the FED…throughout the last few years, variable rates have been incredibly favorable given we’ve been in negative interest territory…but as rates go up, it’s going to begin costing you a LOT more money.
NUMBER THREE: Keep 4-12 months of living expenses saved in cash. This one is huge…keep money sitting on the sidelines in a high interest savings account that you don’t touch.
NUMBER FOUR: Keep your spending to a minimum. This means don’t get used to a lifestyle where it’s completely reliant on a strong economy, and if the markets go down, it’s unsustainable.
NUMBER FIVE: DON’T over extend yourself! Don’t take on more debt than you’re comfortable with paying…Buy things you can afford to own out right, and only finance real estate on fundamentals with a long term outlook!
NUMBER SIX: Don’t rely on only ONE source of income! This is simply too risky in the event you lose your job and all of a sudden you find yourself with no more money coming in, and then you’re frantically trying to take anything you can because you need to pay the bills.
NUMBER SEVEN: KEEP SAVING! You should try to keep your savings rate consistent whether we’re in a great market, or a bad recession…if we’re in a great market, that’s awesome because that should allow you more room to save and invest. If we’re in a down market, keep saving so you can deploy cash back into the markets when everything is on sale. Do not stop saving just because you think the money will keep coming in…
NUMBER EIGHT…last but not least, stay on course. You shouldn’t concern yourself about when the market is going to drop, if you should wait to buy, if you should try to time the bottom…the BEST thing to do is literally STAY ON COURSE.
NUMBER 9…Make sure to smash that like button and subscribe!
For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness @gmail.com
Suggested reading:
The Millionaire Real Estate Agent: http://goo.gl/TPTSVC
Your money or your life: https://goo.gl/fmlaJR
The Millionaire Real Estate Investor: https://goo.gl/sV9xtl
How to Win Friends and Influence People: https://goo.gl/1f3Meq
Think and grow rich: https://goo.gl/SSKlyu
Awaken the giant within: https://goo.gl/niIAEI
The Book on Rental Property Investing: https://goo.gl/qtJqFq
Favorite Credit Cards:
Chase Sapphire Reserve - https://goo.gl/sT68EC
American Express Platinum - https://goo.gl/C9n4e3