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Protect Yourself Against Recession: Create A Supplemental Income
January 6th, 2008
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by Frank Kilgore · Filed Under: Business · Internet Marketing · Marketing
Others are saying what I have been saying. Create a supplemental income stream.
This morning I read the Sunday newspaper, “The Birmingham News”, and in its Money section under MONEY TIPS an article appeared titled: “Take Steps to Avert Dangers of Recession” by Teresa Dixon Murray, Newhouse News Service. The article discussed several key points regarding how you can hedge against a possible recession to maintain your financial stability.
Ms. Murray suggested a number of ways to protect against a recession; some of these include:
-Consider getting a home equity loan while you have a job and can currently qualify for one.
-Consider investing in secure large-cap investments
-Get your finances organized
-Develop a budget
-Identify all your assets
-Pay down debt
-Increase your rainy day fund
-Delay any major discretionary spending
and
-Look for new sources of income
This last item truly caught my attention as she stated that if you’re the only one employed in your household, then you should look at turning a hobby into a side business or try to develop a new skill with a part-time job. The point she made was that if you lost your regular income source (a job), then you at least would have something to fall back on.
I agree with Ms. Murray; however, I would take the concept a step further and say… Develop and have a supplemental income stream, a side business, at all times, regardless of whether you are the only person employed in your household.
I believe that everyone should have an income producing side business of some sort as long as it is productive and does not require any substantial time. In today’s time with the internet, an online business about your hobby, your skill, your life’s experiences is certainly a viable option for a realistic supplemental income source, recession or not.
How do you protect yourself against recession?
I like what you posted and I would like to add the followng:
The 2008 RECESSION: There is something different about this recession…. The DOW has no need to drop to 7000 due to banks going belly-up, IBM has no need to drop to 75 when it will display good profits, BOA should not be cut in half (or should it) while displaying it can make money…. What is really up?
There are three things we need to get a grip on before we can expect a turn around in the economy:
1) Anybody can have a mortgage mortgage: some people are not ready to own a house. Home ownership carries responsibilities. There are repairs and tax pressures renters did not experience. ARM is a ticket in, but the new homeowner MUST get a fixed mortgage ASAP! New house does not mean new toys. The mortgage needs to be paid….
2) High fuel prices: Everything runs on fuel. If we want prices to go down, we need to be able to run our engines at a lower cost. Apples need gas to get to market. Students need gas to get to school. Heating takes gas/oil. So the price of goods has not reflected the true oil price increase, yet. Back to #1…. If you have no buffer for higher prices, you cannot afford a house…
3) Jobs in America: With the trend to push jobs to a cheaper workforce, there will be tons of people out of work. Back to #1…. If you have no job, you cannot afford a house… or fuel.
We are in a mess! Why would it clear up next week? It will not be. I see prices dropping like a rock on Wall Street and banks increasing there rates to gain money. Some businesses will not be able to expand or make payroll. College funds will be lost. Cars, toys, and big ticket items will go back due to payment pressures. Why would I buy IBM Tuesday, October 14 at 85, when it could be 45 in a few months? Recession means “Cash.”
The Question now is: What to do to hedge a major Recession!
Some say buy everything and stay in cash. That means houses, cars, toys, etc. Money is pulled from banks (a small fund) to insure cash-on-hand. Grow food at home and consider a chicken tractor or ideas like that… I want to know what you think…. How should one protect their family, business, and money during the Recession of 2008.