Wherever you are in the world right now, chances are the media are starting to stir up a storm about the upcoming financial downturn.
This isn’t news to experts. They have been predicting a recession for the last few years, what has surprised them is the COVID-19 crisis. The effects of which, some believe, could see us enter into a depression.
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This is a worrying time for all of us—even those with substantial portfolios of property or savings invested in various areas. During the last recession, it was the wealthy with a vast property portfolio that suffered the most. While they were liquidating and moving their investments around, fresh new faces were buying up property, making the most of the low-interest rates and building their own mini portfolios. Whatever your current financial situation, it is time to get prepared to weather the storm.
The first step to surviving a recession is to sit down and look at your current financial situation. Do you have savings? If so, then it might be time to make them accessible. While extracting your money from an investment might leave you with a pile of money that isn’t growing, it will give you a safety net and peace of mind. This will help you get through most of the situations that a crisis throws up.
If you have a number of properties, then it could be time to consider removing the cash you have invested. There are several ways you can do this, but if you are in a hurry, then talking to a wholesaler might be the quickest way. They will agree to a price with you, and this will be lower than the market value, then use their finance to move your wholesale properties. Depending on your financial situation, it could be better to lose a little now, than a lot later down the line.
If after speaking to a financial advisor and running through your current financial position, you have a healthy outlook, then maybe now is the time to start making investments. Some of the wealthiest people have made their money during a recession. As stocks and shares lose their value, people go into a panic. If you can keep your head and buy at the right time, you could make a massive profit on the other side of the downturn. It can be a high-risk strategy and is only a good idea if you have a very stable financial position right now, however with high risk comes high reward.
Whatever happens over the next few years, if you can prepare yourself and start making small changes now, then it is possible to survive whatever this recession throws at you. With out of the box thinking and confident decision making, you will find ways of thriving and coming out the other side with a better financial future than you thought!
