How to survive a Recession

How to survive a Recession

Recession is a period of temporary economic downturn during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters. Basically countries are affected due to the recession crisis. But recession has its direct impact on companies and common individuals of the nation too.

How to survive a Recession
Prepare for a recession, because if you fail in preparing then you are preparing to fail.

The major stock markets have already crashed due to the virus, and we are already in a recession. As we know that money is a great tool. And we need money for our survival, this is a universal truth.

The major companies are also losing their stock value. Some small businesses have already gone bankrupt. Daily wage earners have lost everything (I request you to help them if you can. God will bless you).

The super power America is the worst affected country in the world, although the virus has originated in China.

Other countries like India, United Kingdom, Italy, Germany, Russia, France, Netherlands are affected too. Half of the planet is under lockdown.

And because of the lockdown there is no economic activity going on. Everything is hampered and crushed. But it's important to have a lockdown, because we have no treatment for the pandemic. So, I urge you to #stay_at_home.
But keep calm. Don’t Panic.

Today I am going to help you to overcome the great recession of 2020. I call it a “great recession” because it is really a serious problem. This recession is many times bigger than the 2008 crisis. 

As we can see that all major stocks whether it is a developing country or a developed country have crashed. And this is the time when rich people are ready for. And yes consider and affirm yourself as a rich person.

Warren Buffet once said - “Be fearful when others are greedy and be greedy when others are fearful” This statement is nothing but a hint for young investors who are new. And it may be a blind shot for the one who picks the wrong stock.

Here are some best ways on how survive Recession 
Caution : If you really want to survive the recession and become recession proof then don't skip any point (you can skip the last point.). You have to follow all, because all are interconnected.

Get rid of debts

Debt is stress. Having debts not only harms your present income but it can also harm your future income.

how to survive a recession
Pay your debts
Debts have a very bad habit of getting compounded. I.e. 1 becomes 2, then 2 become 4, and 4 become 8 and so on. Hence, we can say that debt is a parasite for your income.

By paying your debts you can spend on things you enjoy. It will increase your financial security and reduce the number of bills you pay. This will give you a purpose to teach your next generation or your kids about money management.

Getting out of debt will save your money and finally it will help you build assets for future recessions.

Don't sell your Stocks

Patience is the key for a successful investor. Keep in mind that the Bearish market lasts less than the Bullish market. Don’t ever sell your stocks in negative value. Because the problem of this pandemic is temporary and as the lockdowns will be lifted up and the economy will come back on the track, the companies will eventually do well.

how to survive a recession
Don't sell your stocks in haste
Holding stocks for the long term is always beneficial. As the power of compounding and the dividends will be rewarded to you.

You will be able to sleep better at night. It will allow you to pay less taxes.

Never take action in haste and panic, because, “Hurry is worry”.

Create a budget

A budget not only allows you to track your day to day expenses, but also tracks all economic activities. Making a budget is not interesting and an easy task but it is worthy. It is a vital task please take it seriously.

how to survive a recession
Create a budget
First of all gather all your financial statements and identify all discretionary spending. Then note down all sources of your income. Create a list of all your vital and most necessary expenses like Groceries, clothes, water, bills etc.

Then break the expenses into two parts. The first one is variable and the other one is static. The variable expense is the expense which may vary for some dollars.

So, prepare a separate amount for this variable expense. Now allocate all the variable and static expenses.

Finally review the budget every week or every month because this time the recession is going to last for a longer period.

Create a contingency fund

A Contingency Fund (CF) is an emergency fund or a safety net that you can get your hands on at a moment’s notice.

how to survive a recession
To create a contingency fund first of all identify your needs and create a savings account. To identify your needs, check your past expenses. Now you will get a clear roadmap of your monthly expenses.

A contingency fund can also carry your marriage, birthday parties, impulse shopping expenses. But I would like to suggest you not to marry at a time of crisis.

Then estimate the complete cost and add 5% of the total cost into it. For example if your total estimate comes to be $5100. Then 5% of it will be $255. Hence the total fund should come to be $5355.

You might be wondering why this 5% is added. Answer is - Its inflation, or any unwanted expense.

Then revise your budget which we had created in the former point. You can also place this contingency fund in the category of static expense.

Contingency fund has maximum advantage and less or no disadvantage.

A contingency fund can act as an antidote for your sudden credit card debt. And it can also protect your feeling of being broke or bankrupt. It is a life saving pill that will help you in the long run.

One of the biggest advantages of contingency funds is that the amount gets compounded with high interest rates which is magic. It can also help you to start a new business later when the recession is over.

Check out the great recession of 2008

It is not that we are facing recession for the first time. 2008 - 2009 was the year which has already taught us some lessons about the recession.

How to survive a Recession
There are more people who became rich after the recession of 2008. The author of Rich Dad Poor Dad, Robert Kayosaki. He accepts the fact that he earned more money after the recession of 2008. He accepted this fact in an interview with Patric Bet David at Valuetainment.

This is the time of opportunity. Rich people wait for this moment. According to the IMF and World Bank, a recession is inevitable. It is expected to recur in every 10 to 15 years.

Well, past recession can give you a hint about how to survive this recession. You should get details and data of all the measures people took to survive the recession of 2008.

Eat home cooked Meal

Our food choices determine whether or not we are getting adequate amounts of the nutrients our bodies need to function properly.

“Health is wealth”
Our diet has a major influence and impact on our health. There are many advantages of cooking food at home. It will directly impact your expenses positively. When you cook food at home - it depends on you how much spices or oil you need to use.

How to survive a Recession
Cook food at home only
Whereas the food which you eat outside in some restaurants are unhealthy and dangerous for health. They don't think about your health. And how will they. Everybody has his/her own eating habits.

You will be able to control your diet on your own. And I bet you that this is the golden opportunity for you to reduce or gain your weight if you are heavy or lean.

Another big advantage is that you are able to spend more time with your family, and your loving ones. Your kids will also learn something good from you. They will get inspired. The food which is cooked by you will be hygienic and will taste more good.

Create sources of income

If your job is the only source of your income then you are one step away from poverty. If you lose your job then it will be a catastrophe. Your job doesn't depend on you, It depends on your employer.

How to survive a Recession
You have to create sources of income
You must have heard the quote, “An average millionaire has 7 sources of income” Therefore you should not risk your life with only one source of income.

It’s never too late. You can even start right now and create a source of passive income for yourself.
For example you can start your own niche website (BLOG). Do you know what a niche website is?

Yes, the website which you are reading right now is a niche website. On this website I regularly post articles on Financial Education. Which helps my visitors a lot, in gaining knowledge about personal finance.
Since, the financial literacy which I provide is free and unique, so google also helps me in gaining traffic(visitors). In the reward of my hard work for providing the financial knowledge google places ads on my website.

Each time when a visitor visits the ad I am paid a small amount. These types of websites are called Blogs or niche websites because they are updated regularly with new articles.

You can also earn money from amazon. Yes, it's Jeff Bezos’s company. Amazon provides you with an affiliate program.

In this you are paid a small commission on the things you sell by promoting them. It is a very popular and fastest way of making money online and is a passive income.

Other ways are also there like Freelancing, selling your product or service, YouTube, Rent Your home (AirBnb), UBER etc. All of these except freelancing is passive income. I.e you will be making money while you are sleeping.

Extra Stroke point : I want to tell you a secret. Shhhhhh…..! Do you know that YouTube is going to be the next generation of entertainment platforms? (not only entertainment, almost all.)

how to survive a recession
Of course it is also one of the best sources of entertainment now. But because of the recession and the virus which has spread, there will be a boom in the video industry.

Nowadays more people love to consume video content. Since, schools and colleges are shut down and we don't know when they will reopen.

If you are a teacher or even if you have knowledge about a specific subject just start your channel (And send me the link of the channel at I will subscribe, in order to motivate and to help you.).

If you are good at comedy then just start now. This is the right time to do it. Listen…. If you take steps now, YouTube will take steps to recommend your videos in order to gain more views.

Buy real estate

Buying land or real estate is more fun and interesting than buying stocks. Well if you have some land then it's something like gold for you. Do you know that the price of land always goes up?

how to survive a recession
Therefore you can call it an asset. The reason why I am focusing on land is that you have to grow your own food.

Yes, I am serious. I have land and I grow my own vegetables and it's fun. Not only do I save some money by growing my own vegetables but also it helps me to have good health.
There are many advantages of growing your own food. According to the severity of the recession, if you are able to grow your own food then it is a plus point. It is not mandatory but it will help you in the long run. 
how to survive a recession
There are many advantages for growing your own food. First of all it has a very good impact on your health, then it will save your money. You will also become self reliant and finally it will help the environment as well.

If you don't have land or if you are not in the state of buying one then, you can also use the advantage of advanced agrotech to grow vegetables in small pots. Believe me it will be fun and entertaining.


The 8 points which I have discussed with you are in perfect Hierarchy and a very strong financial planning. Since millions of people are searching for the same thing on How to survive a recession.

And this is the answer for all of them. Please do share with all the people you know. Because your one share can save someone's life. Someone will be able to save himself or herself financially and we all will be able to come out of this recession successfully.

1. Can Money buy happiness

2. Signs that you will become Rich one day.

3. How to become a millionaire by 40

4. Millionaire habits
5. Life lessons
Thank You

God Bless You