Photo by Jp Valery on Unsplash

Prepare Today for Tomorrow’s Downturn

Mitch Massman
Nov 10 · 5 min read

There has been a significant conversation around whether or not a recession is on the horizon — no matter how frequently Trump says otherwise. There certainly are signs that a recession is going to occur in the future. This is not to say that a recession will begin tomorrow, but rather in the, relatively, near future.

The Federal Reserve recently reduced interest rates again, to increase growth in an economy that has begun to reveal signs of slowing down. The yield curve went inverted in August of this year — this has occurred before every recession since 1955. It is important to note that the curve is no longer inverted, but some believe a recession is imminent.

After all controllable expenses have been minimized, job cuts will begin to take place. Over the last couple of days, people I know have been cut from their positions “due to downsizing”. Companies have begun their downsizing efforts as the economy is slowing to maintain their profit margins.

We as individuals have to recognize that companies must turn a profit because without profitable companies, there are no jobs to be had — there is no way to sugarcoat this.

This process sucks, it is painful, and it hurts individuals — and potentially morale within an organization. However, this is the reality that we live in.

As millennials, we were young during the Great Recession, some just beginning their careers and others still in college or high school. It has been a long and (mostly) prosperous 10 years since the last recession ended, but the next recession — whenever that happens — is going to hit us while we are smack dab in the middle of our careers.

We need to begin now to prepare ourselves for an inevitable downturn, which is hopefully not as bad as the last one. Here are a few things you can do to put yourself in the best position possible.

Pay off as much debt as possible

Debt, especially if you lose your job, is a heavy burden to bear and some debt is worse than others. Aggressively reducing this debt will be vital not just for preparing yourself for a recession, but also for relieving stress.

  • Payoff high-interest credit cards — paying 20%+ on a credit card is going to catch up with you fast. Get rid of it.

Make yourself more valuable

Making yourself valuable to the organization you work for can make it that much more difficult to be rid of you if and when downsizing begins. There are some easy ways to make yourself more valuable:

  • Take on any new project — show initiative when a new project comes up, be the first one to volunteer.
Photo by Justin Veenema on Unsplash

Create multiple revenue streams

I know, I know, I just said make yourself more valuable to make it more difficult for the company to downsize you, but honestly, the company sees you as an asset. The moment an “asset” becomes a “liability” or depreciates it forces a company to consider cutting their losses.

The company only “cares” about you when you are valuable to them. Don’t rely on your job as your sole income, start building multiple revenue streams. It is easier than ever to build up a side hustle.

Scratch that, it is most certainly not easy.

However, there are certainly plenty of opportunities to build a side hustle. Having capital makes it easier to get started, but not everything requires cash up front. Let’s take a look:

  • Start writing to make money — Medium is a good platform as long as you follow the steps that have been laid out by successful writers.

Some of these are free, some take money, but all take hard work and years of building to make them successful. Start now: I did a quick google search for you.

Through chaos comes opportunities

“In the midst of chaos, there is also opportunity”

Remember that through chaos comes the opportunity to make money — if you can find it. Take for instance The Big Short, they researched and found the underlying problem and took advantage of the opportunity.

I am no guru, I am not Warren Buffett, so don’t ask me where the opportunity will come from because, frankly, I don’t know. However, the “chaos” of hearing about people I know being downsized from their company gave me the idea to write this article.

Chaos →Opportunity

Take advantage of the chaos and rise like a Phoenix from the ashes.

Live Your Life On Purpose

Get Purpose. Get Perspective. Get Passion.

Mitch Massman

Written by

I just enjoy writing and discussing what I am passionate about. Advocate for healthy living and well-being.

Live Your Life On Purpose

Get Purpose. Get Perspective. Get Passion.

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