How to Survive ‘Any Economy’: A 3 Step Plan
A simple plan is usually best.
Don’t follow fools off cliffs.
Make sure you know the game they’re playing to see if it matches up with your needs.
Now, to give you an idea of the game I’m playing: I’m in my mid-30s and don’t need any of my investment money for at least 10 years. I also plan to work (though optionally) and have incoming money until I drop dead, preferably in my 90s.
If you’re a good bit older than me, your game is probably different.
If you’re younger than me, you can safely follow this advice or tweak it to fit your needs.
#Step One: Keep emergency fund intact
Nothing crazy. You don’t want a ton of money sitting around doing nothing for you.
But you also don’t want to have to interrupt your assets by cashing them out to pay for an emergency.
We keep about 6 months of expenses in cash. I do have some overflow cash in a money market but that’s for investment opportunities during crashes (like the ones we’re seeing now).
#Step Two: Build positive cash flow
This is a two part answer.
Cut costs. Increase income.
When cutting costs, it’s all the obvious things like nights out and lattes. But it’s also shopping insurance and other fixed costs to find the best deals.
I’ve actually downgraded my lifestyle as I made more. Went from a 2400 square foot home to a 1400 foot one. Cheaper payments, taxes, insurance, utilities, etc. And I went from a brand new car back in 2008 to a used one in 2018.
When increasing income, it can be the obvious such as asking for a raise or getting a new job. But also building passive income and side hustles.
I get paid 9–5 (sales job), for my writing, dividends in stocks & Fundrise, crypto interest. And soon I’ll get paid for digital products. Always be on the lookout for opportunity.
Money is out there, it may as well be yours.
Read also: You’re wrong about money: consider this
#Step Three: Buy assets regularly
I spread out my assets across 4 main categories: stocks, crypto, real estate & toys.
Then within those categories I spread out again.
Mostly ETFs (broad mix), various coins, commercial, residential & industrial real estate, action figures/Legos/etc.
I do my real estate investing (very happily) through Fundrise. If you’d like to sign up and get 50 dollars, you can do that here.
I buy these assets at regular intervals. At least every 2 weeks. Sometimes more often.
There you have it.
Emergency fund, positive cash flow and asset purchasing. That’s your any economy plan.
Easy as pie to follow.
CONTRIBUTED BY Cait Mack
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