How to Profit During the Recession

A recession is a time when everyone loses income, including businesses and individuals. But do you realize most of the wealthiest business families and even the big enterprise built their income during the recession? During the first phase of the Covid crisis, Amazon made a lot of profits and Jeff Bezos became the world’s wealthiest man.

Most of the millionaires and billionaires are the product of the recession.

A recession is a winter when you plant seeds underground and one day (when the recession ends) it will become a tree and you can harvest the fruits.

During the recession, you might go through a lot of problems, however, if you don’t give up, you will ultimately have something to cherish.

However, the recession is an opportunity for only those who see it as an opportunity to build their income and wealth. Those who focus on fear will lose everything.

If you want to be on the profitable side during this recession, start investing, you can buy stocks, invest in real estate, and buy cryptocurrencies.

How to Start Building Your Wealth

You might be earning money, you might be saving money, or you might even be investing money, however, if you are not building your wealth, there is no point in making money.  Making money does not only mean earning money to pay your bills, you also need to make money in order to build your wealth.

Why do you need to build your wealth in the first place?

You need to build your wealth for financial freedom, to live comfortably in your old age, also help your family when they need financial help, contribute to society by donating to charities, etc.

How o start building your wealth?

You need to increase your income. You can increase your income by working multiple jobs, working harder, and working more hours.

You need to invest your income. You should not spend your entire income, you should invest in stocks, mutual funds, businesses, real estate, cryptocurrencies, etc.

You need to insure your investment against investment risks.

How to Profit from Your Investment

Investment does not require any management funds or running costs. If you want to invest in the stock market, you need to look for profitable stocks and buy stocks. If your investment turns profitable you can collect dividents. If you want to invest in real estate, you can buy property, hold the property for a while and sell back when the market improves. You can also invest in crypto currency for the long or short term. If you want to invest and profit by investing, you need to follow certain rules. 

Rule No. 1: Diversify your investment

Investment is a very risky business, in one moment you can become super-rich, and in one moment, you can become bankrupt. Therefore, to minimize the risk associated with the investment you need to diversify. Diversifying means you are not only buying stocks in different companies but also investing in other markets as well, for instance, real estate, mutual funds, etc. 

Rule No. 2: Do not invest the amount that you cannot afford to lose

When you are investing, you should only invest the amount that you can afford to lose. What this actually means is if the market crashes and your investment becomes zero, you will still have some income sources to pay your bills. Therefore, you should not invest everything you have, you still need money for emergencies after you have invested. 

Generally speaking, it is quite unusual for your stock value to become zero, and even if you lose money, you will still have something left, but it is not advisable to invest your entire savings in stock. If you want to invest, make sure you still have some cash left.

Positive Mindset: Does it Help?

No, the mindset does not matter. I have the mindset to make $5000 per month, I also work hard, sometimes, 12 hours a day, and I also work smart (I do a lot of automation and work in tandem with virtual assistants to ease my work), have I made $5000 per month? The answer is NO! Just because you have decided on something does not help you achieve your goal. I do not want to discourage people, but I am trying to be realistic. It is good to have a positive mindset, it is good to have a goal set and work towards that goal, however, things like these do not actually help you. You will know this when you are in the field. You need to focus more on things like developing professional skills (skills that can help you more money, for instance, you can earn more money as a graphic designer instead of a content writer, you will earn more money as a programmer instead of a graphic designer.)