How to Recession Proof Yourself

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Today i’m going to talk about how to recession proof yourself the writing is on the wall we’re pretty much right in the middle of having a recession already personally i’m not too worried because i have enough savings to tide me over for two or three years at least and if you still have a job now is probably the time to tighten your belt to really save a lot first

A little bit about cryptos you guys know i invested in dogecoin around seven cents buy-in price it went up all the way to 70 cents so my paper gains was five hundred thousand dollars now it’s back down to seven cents so i basically evaporated all of my gains i never sold it it really does suck that it went down so much but i was not able to time the crypto market

But i am fine right now i did not buy it on margin or anything so there’s no margin calls yeah it’s gonna be a crypto winter it’s going to be like this it might go down even more within the next six months or so and i think it’s gonna flatten out for a year and then maybe it’ll pick up after two or three years in the meantime i suggest to not look at it at all just

Hunker down have a low burn rate enjoy life come back to it after some time and most importantly of all is to not invest so much where it affects your life i personally invested a small amount relative to the amount of portfolio that i have less than 10 percent so i am not promising anyone that it’s gonna go up back to one dollar or anything it can very well go

Down to zero so it’s pretty much a lottery ticket it might go up it might not in the meantime i suggest to just hang around and see what happens the s p 500 is down 20 from its peak and i’d say bring it on it can go down to 50 if it wants to everything is fine you should dollar cost average and everything will be back in 2 to 10 years or so but definitely you have

To have a pretty long time horizon and a lot of patience i know on the internet people expect things to happen within two or three months especially in the investing space as a financial youtuber you can pretty much become irrelevant within two years i might not even be around by then who knows what’s gonna happen the interest rates are going up and it’s going up

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Because they’re trying to tame the inflation once inflation goes down you might see the interest rate taper off a bit and you might want to think about where you’re going to put your cash in the meantime you might be chasing a high-yield savings account oh this one has one percent that one has like 1.5 so you keep on switching savings account you probably shouldn’t

Switch for maybe only 0.2 percent increase in apy you might want to wait for like at least 0.5 or 0.75 difference before you do the switching just so that you don’t keep on switching accounts just to get the tiny bit of extra interest rate i personally have a discover savings account which last time i looked it was 1.00 but just today when i looked at it it went

Up to 1.1 percent marcus is at 1.00 percent sofi has something interesting which is 1.5 apy but this requires a direct deposit if you don’t have direct deposit it’s only 0.9 apy they have this promotion where you get 25 if you deposit just 10 if you do a direct deposit you’ll also get a 300 bonus so in total you’re gonna get 325 i have a referral link for this

Down in the video description below now job loss is probably on everyone’s mind during a recession you are kind of worried are you going to be the next one to lose your job during my career as an engineer i went through two recessions through the 01 and the o8 i’d say in order to resession proof yourself against a job loss you have to be the go-to person at work

While you’re working at your job for years it’s sometimes possible to create your own job security artificially the way to do this is to create an ecosystem some platform that you are personally very familiar with maybe you designed it yourself and possibly other people are using it but you are the person that are most familiar with it and so they can’t get rid

Of you because you’ll be the one that maintains it and if they fire you or lay you off well they’re gonna have this entire really huge ecosystem that no one really understands and all of it would fall apart if you’re not there i’d say more than being the go-to person being liked is probably the top of the list even if you’re a very knowledgeable person but you are

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Not light who are you going to get rid of first it’s probably the person that they don’t like you don’t actually have to be a superstar to not get laid off to be an average worker depending on your skill level right if you are a very efficient worker you can probably get by by working about 25 of the time and then become an average worker so to be average is very

Easy you have to really really work hard to be the bottom 25 and be a candidate for layoffs now i also got laid off one time in my life and the writing was on the wall for an entire month before i actually got the letter and i actually knew it was coming you probably can see the writing on the wall and see some red signs for example there’s not going to be any work

For you to do it’s just going to be quiet over there in the lab in the halls no one’s around people are taking lunches until 2 or 3 p.m because there’s no work to do and if it’s inevitable you probably want to start interviewing so that you catch on to another job right after you get laid off the best time to find a job is when you already have one but if you

Really really want to get laid off in california if you make enough money you get 450 dollars per week in unemployment so this is eighteen hundred dollars per month if your burn rate is lower than eighteen hundred dollars per month then you don’t have anything to worry about for an entire year you can just keep on collecting unemployment now a job loss would also

Result in the inability to pay your mortgage if your burn rate is high enough you really can’t just get rid of it overnight you have to actively work on paying it down over many many years i personally paid it off in eight but if you have a low burn rate and a high income you definitely can do this within eight years or so if you don’t have a paid off mortgage

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Yet it’s important to have at least two years of mortgage payments saved up now i know this is not possible for a lot of people this is a lot of money the way to save this much is to turn down your burn rate minimize your expenses increase your income and then possibly you can save more and more you really need this nest egg in order to feel comfortable so that

You’re not fearing for your life when there’s a recession when there’s a layoff don’t even get me started on arms adjustable rate mortgages and i i don’t think people should even get this most of the time i know some people who got this they plan on refinancing within a year or two just so they can lock in a really low rate but during times like these where you

Know that the interest rate is going up you definitely don’t want to step into an arm you lock yourself into a low mortgage rate but it’s adjustable so times like these when the interest rate starts going up it can very easily run out of control your mortgage suddenly balloons it can increase by 20 percent 50 even and then you’ll suddenly find yourself not able

To pay it luckily statistics say only 9.4 of all mortgages are armed mortgages so not a lot of people are choosing this because people know better they’re getting fixed rate mortgages instead you might also want to protect yourself against high gas prices you can actually get yourself a nissan leaf these cars they have a 150 mile range and they only cost 20 000

After federal tax credits if you’re smart about charging charging off peak hours charging at the lowest possible rate you’re gonna end up paying an equivalent of around two dollars a gallon i hope you guys enjoyed this small talk on what to do with this recession and all these layoffs that might potentially be coming i hope you guys enjoyed this video don’t forget

To give me a like and subscribe for more thanks for watching do do you

Transcribed from video
How to Recession Proof Yourself By BeatTheBush

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