It is no news that world has not been the same since the pandemic hit every cou. And the major concern beside health is the economy. The fear of a recession or even a depression has since kept the world on its toes; and hard as every country has tried, economic losses have been counted in form of loss of jobs, collapse of businesses and consequently, a drop in the indices of economic vibrancy. 

Yet in the face of these all, some have continued to not just survive, but also thrive. 

This may have you wondering how this happens. You may have assumed that they are only taking from the abundance of their reserve. But that’s not all. 

There are ways to sustain wealth in recession, and in this video, I want to show you why that is possible despite the low earning and spending power of others in such times. 

1. Exploring many streams of income: The worst hit set of people during a recession is those who have only one source of income. If for example, such person is a salary earner, a pay cut or downsizing means a threat to their livelihood. As for people with three, four or more streams of income, especially when these streams of income are unrelated, they usually stand a greater chance to remain afloat in the midst of the downturn. Another factor related to this is diversified investment. This means you have your money in different places. 

2. Proactive financial management: You prepare for war well before it happens, not on the battlefield. The same principle applies to finances as related to recession. Those who have always considered unfavorable possibilities always prepare for it, and it is evident in their spending habits. Two things are common to them all:

1. They live within their means. When the times are good, they spend only as necessary and avoid debt. 
2. They have emergency fund. Some keep funds as much as can cover them for three or more years. 

3. Filling the gap created by economic obstacles: During recessions, new services always emerge as a replacement for a regular one which has failed due to a drop in people spending power. An example of this is Airbnb, which started as an alternative to high hotel cost in 2008 during the global economic recession. Though it has been around since 2005, Zoom came to limelight last due to the lockdown as people could not meet physically. 

4. Buying cheap investments: Businesses get on the brink of collapse as a result of reduction in both of demand and supply. As a result, a lot of businesses are put up for sale. And since there will be more people willing to sell their businesses than those looking to buy, they would come cheap. It may look foolish on the surface that you’re buying a business with no prospect to profit, but the purpose it serves manifest in the long run. This is what Warren Buffet did, buying a railroad in 2009. His justification was that the recession would end, and when it does and shipping resumes, it would mean tremendous profit for him. 

5. Automated Income Generators: These include real estate, apps, online stores and information products. These channels of income do not require your active presence to generate money. Once created, people will always have need of it. 

6. Venturing in Food: No matter how broke or poor, people will always seek ways to feed their stomach first before anything else. This is why commercial farmers, food product manufacturers, distributors or vendors food always remain afloat no matter how bad the economy gets. 

Key takeaways:

1. The best time to prepare for recession is before it happens.
2. Always think long term
3. While others read headlines, analyze data. While others see obstacles, see opportunities.