Episode #168

A recession isn’t off the table for 2024, so you’ll need to know how to prepare for a recession and profit if the economy starts to slide. If your real estate values fall, your tenants stop paying rent, or you lose your job, how will you ensure you keep your properties? Those who can survive the bad times often thrive in the good—so what should you do to prepare?

Today, our expert panel gives four suggestions ANY investor can take to make it through a recession unscathed. All of these suggestions are being put into practice NOW by our panel of experts. They’re not complicated, and acting on even a few of them could save you tens of thousands (or an entire property) if and when a recession finally does hit.

From cutting costs to keeping cash on hand, investing differently, and building a “backup” for buying properties, these tactics will enable you to scoop up the deals that inexperienced investors couldn’t hold onto!

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Show notes at:

00:00 A Recession in 2024?

02:43 1. Keep Cash On Hand

04:50 How to Build Your Cash Reserve

10:34 2. Look at Operating Costs

15:37 How to Cut Costs

18:13 3. Secure Backup “Debt”

22:16 How to Access Credit Lines

26:20 4. Diversify Your Investments

28:27 How to Diversify in Real Estate

35:28 Become Recession-Proof!…(read more)

BREAKING: Recession News

LEARN MORE ABOUT: Bank Failures

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

As the world continues to navigate the effects of a global pandemic and economic instability, many experts are predicting a recession in 2024. While the exact timing and severity of a potential recession are impossible to predict, it is important for individuals and businesses to be prepared for economic downturns. By taking proactive steps now, you can minimize the impact of a recession and ensure that you are better positioned to weather the storm.

Here are some key steps to prepare for a 2024 recession:

1. Build an Emergency Fund:
One of the most important things you can do to prepare for a recession is to build an emergency fund. Aim to save at least three to six months’ worth of living expenses in a separate savings account that you can access in case of a financial emergency. Having this safety net in place can provide you with a cushion to fall back on if your income is affected by a recession.

2. Pay Down Debt:
Reducing your debt burden can help alleviate financial stress during a recession. Try to pay down high-interest debt, such as credit card balances, as much as possible. By reducing your debt load, you can free up more of your income to cover essential expenses and weather an economic downturn.

3. Diversify Your Income:
If you rely on a single source of income, consider diversifying your earnings. This could involve taking on freelance work, starting a side business, or investing in income-generating assets. Diversifying your income streams can provide greater stability and reduce your reliance on a single source of income that may be at risk during a recession.

4. Evaluate Your Investments:
Review your investment portfolio and consider making adjustments to minimize risk. This may involve diversifying your investments across different asset classes, rebalancing your portfolio, or seeking the guidance of a financial advisor. It’s important to ensure that your investments are aligned with your risk tolerance and long-term financial goals, particularly in the face of potential economic volatility.

5. Cut Back on Nonessential Spending:
Take a close look at your budget and identify areas where you can cut back on nonessential spending. By reducing discretionary expenses, you can free up more of your income for essential needs and savings. This can help you build up your emergency fund and reduce financial strain during a recession.

6. Update Your Resume and Network:
If you’re concerned about the stability of your job during a recession, it’s a good idea to update your resume and strengthen your professional network. By keeping your skills and qualifications current, you can position yourself for new opportunities if your current job is at risk. Networking with colleagues, industry contacts, and potential employers can also help you stay connected to job opportunities during uncertain economic times.

It’s important to remember that preparing for a recession is not about predicting the future, but rather about taking proactive steps to protect your financial well-being. By following these tips and staying informed about economic trends, you can better position yourself to navigate potential challenges and emerge stronger on the other side of a recession.