2022 Preparedness - Part 2: Week 27
Week 27 - July 11, 2022
Prepare for a Recession.
Many experts now believe we are already experiencing a mild recession, the beginning of a longer and deeper one. As we have discussed before there are opportunities during a recession for those who are prepared. The Great Depression began in September of 1929 but shocked the world when the stock market crashed on October 29,1929. No one is suggesting another great depression but we can learn from it. Many who were prepared to take advantage of the depression became very wealthy while others lost everything. How can you be prepared to thrive during a recession?
Now is not the time to flee the stock market but if you have, and have cash on hand, or if you have cash in savings Series I savings bonds could be a good option. Whether or not this makes sense depends on when you’ll need to access the money. The interest rate for I-Bonds shifts along with inflation and currently is at an annual rate of 9.62%. This rate resets (up or down) every six months. Individual can purchase up to $10,000 of Series I savings bonds per year and you can use your tax refund to invest another $5,000. You need to own these bonds for a full year before you can sell and if you cash out before holding them for five years, then you’ll forfeit the previous three months of interest. Consult your investment advisor and do your own research.
Find a side job. There are many opportunities if you think creatively. What do you have that you can rent? Do you have a tractor, chain saw, parking spot, room in the yard to park an RV? RV parking can be expensive. Do you own an RV you could rent? What about a spare room?
Coaching. Do you have a skill you can teach online? Can you teach frugal cooking, starting a business, organizing a home or business, foreign language, photography, pet training, budgeting, resume creation, genealogy research, what expertise do you have?
Help someone. If you love to exercise why not dog walking, babysitting, running errands for others while you run your own.
Being creative now will enable you to stash some cash for when opportunities arise during a recession and others do not have the cash to take advantage. Homes, appliances, vacations, clothing, stocks, even food and emergency supplies may all reach record low prices. Be ready.