If you haven’t heard it once, you’ve heard it a thousand times. During the course of 2019 the drum beat of a global recession has only gotten louder. Eventually what you think or talk about the most will manifest. However, we are not void of proven methods designed to protect your savings and investments. Just like noise cancelling devices are used to create quiet in the midst of chaos, here are 4 wonderful strategies anyone can use to preserve their savings and investments for the long haul.
CREATE MULTIPLE STREAMS OF INCOME
Cash flow is king and multiple streams of it rules the kingdom. For example, when you have multiple streams of income i.e. dividend income, royalties, rental income and Affiliate Marketing, you create the power of multiplicity by duplicating your efforts to create.
A great book about this is called “Multiple Streams of Income” by Robert G. Allen. This is a good read and I highly recommend your exploration of this powerful book.
One good way to recession proof your investments is to have your investment firm or bank conduct what’s called an Asset Allocation. With this process, an advisor or typically Asset Allocation software is utilized to allocate your holdings to better suit your investment goals to the current or foreseeable financial climate. This process will restructure assets to be conservative, moderate or aggressive in investment strategy. Thus, it’s a good idea to either have this done by your financial advisor or for self directed investors, if available utilize Asset Allocation software to adjust your current assets.
EXPLORE ALTERNATIVE INVESTMENTS
Never keep all your eggs in one basket and never feel you must follow what the everyone else is doing. I guess I’ve always possessed a spirit of wanting to explore all my options. Thus, I want to encourage you to explore your options regarding Alternative Investments. One such Alternative Investment is Cryptocurrency. Big name brokerage firms like Fidelity and TD Ameritrade are offering such assets. If you are unfamiliar with Cryptocurrencies, I encourage you to review my comprehensive course “Let’s Talk Crypto” which was written in layman’s terms designed especially for the novice.
CREATE AN EMERGENCY FUND
What is an Emergency Fund? An Emergency Fund is a financial safety net for future mishaps and/or unexpected expenses. Most financial advisors recommend an Emergency Fund consist of three to six months of expenses in the form of highly liquid assets.
Three to six months may seem out of reach to most, but you will be surprised how the process of consistently saving small amounts will accumulate over time.
SIX WAYS TO CREATE AN EMERGENCY FUND AND WHERE TO PUT IT
This one is simple and straight to the point. A few pointers on how to build your Emergency Fund and were to store it.
- Save a portion of your tax return
- Eliminate wasteful spending i.e. excessive eating out
- Create a side hustle i.e. Uber, Lyft
- Sell excess items you no longer use
- Revamp your budget
- Don’t procrastinate. Just do it
Where to put your Funds
- Money Market Account
- Certificate of deposit
- Treasury bills
- High-yield savings account