Tag: Recession Proof

Bank of America Expects a Recession by Q1 of 2023

Market News: Bank of America and Wells Fargo CEO expect a recession in 2023.
Market News: Bank of America and Wells Fargo CEO expect a recession in 2023.

Bank of America is expecting a recession to hit the U.S by the first quarter of 2023.

There is a major slowdown happening says CEO Brian Moynihan.

Economists are now expecting a volatile market to persist in 2023.

A recession may be coming in the first quarter of 2023, according to forecasts by Bank of America (BofA) economists.

“A recession is very likely in the U.S.,” BoFa wrote in its Year Ahead 2023 report. The bank points out that this recession can last through the third quarter of 2023.

There’s no official definition of a recession, but many economists define it as a period of two consecutive quarters of negative economic growth or gross domestic product (GDP) decline – a drop that’s already been seen in 2022, says FOX Business.

But many Americans already believe the U.S. is already in a recession.

More than half or 56% of Americans believe the country is in a recession, according to a recent poll by YouGovAmerica and The Economist. 

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Major Slowdown in Economy Points Towards a Recession

Recession News: Bank of America expects a recession in 2023.
Recession News: Bank of America expects a recession in 2023.

While retail payments surged 11% so far this year to nearly $4 trillion, that increase obscures a slowdown that began in recent weeks: November spending rose just 5%, Bank of America’s CEO Brian Moynihan said.

Even Wells Fargo CEO Charlie Scharf is saying, “there is a slowdown happening, there is no question about it. We are expecting a fairly weak economy throughout the entire year.”

American consumers are tapping the brakes on spending as the Federal Reserve’s interest rate increases reverberate throughout the economy, according to the CEOs of two of the largest American banks.

After two years of pandemic-fueled, double-digit growth in Bank of America card volume, the rate of growth is slowing.

Still, the downturn isn’t being felt equally across all retail customers and businesses, Wells Fargo’s CEO said.

Both Wells Fargo and Bank of America CEOs expect a recession by Q1 of 2023 and expect some sort of light at the end of the tunnel by Q4.

The implications of a recession end up affecting majority of the U.S. economy as corporations and businesses struggle to yield market capital in slow-growth conditions.

Wages are affected, unemployment skyrockets, and the banks get left with massive debt when Americans can no longer afford to pay their credit card bills or mortgages.

Do you think we will officially enter a recession in the beginning of 2023?

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Source(s): FOX Business, CNBC.

How Can the Average American Pivot in a Recession?


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How Can the Average American Pivot in a Recession?

Recession 2023
Want to become recession proof? Here are some steps you can take.

An economic downturn, a recession, call it what you will.

The U.S. economy is in a state of emergency and the average American is suffering financially.

From stock and crypto market crashes to the rise of gas prices and increased inflation, the middle class is in desperate need of help.

The problem is no one is teaching the middle class how to pivot.

Cutting back on expenses isn’t going to do it, you can only cut so much.

This article is going to help you identify several ways to pivot during a recession so that you can take care of your family during economic hard times.

Let’s get started.

Shifting Mindset from Defense to Offense

how to prepare for a recession.
How to prepare for a recession.

During a recession, most people tend to contract, they tend to shrink (cut expenses, coupon, etc.).

Very few, however, expand and look for high reward opportunities.

It’s these opportunities that allows the few to shift their mindsets from defense mode to offense mode.

A defense mindset is idle, waiting for the government to do something about their financial setbacks (job loss, cut hours, lost pension funds, market crashes, etc.).

An offense mindset on the other hand is identifying how to keep up and overcome the changes occurring in their environment.

While most people focus on the things that are out of their control, few focus on the things that are within their control.

If you’re reading this blog, chances are you’re being impacted by our economy today and want to make more money.

Who doesn’t want to make more money?

Money is how we ensure our family’s security and wellbeing in America.

If you want to learn how you can pivot in today’s falling economy by earning more money, keep reading below.

Learn How to Use Leverage and You’ll Never Fall Short Again

how to use leverage
How to prepare for a recession.

We all have the same 24hrs in a day, but do you want to know why successful people make more money than the average person?

It’s not because they work harder than you or because they’re smarter than you.

It’s because they use leverage.

Leverage is a multiplier of both time and money.

What would have taken you decades to accomplish, leverage gets it done at a fraction of the time.

Leverage is accessible to everyone, including you.

But we don’t grow up with mom and dad teaching us this.

So, what are some forms of leverage you can take advantage of as soon as you exit this blog article?

Let’s dive right into them.

Leverage Tools to Help You Make Big Money

#1. Building Your Dream Business

Small business recession

Starting a business around your hobby, passion, or skills has the potential to create that world you desire.

How does leverage play a role in building a business?

Think about this for one second.

If you work a 9-5 or commission job, you the employee are generating income for the leader of that organization and getting paid per hour or per sale to do so.

However, if you’re the business owner of a small business or startup, all revenue goes to your business account.

The leverage here is you’re now using your time to build something that will generate positive cashflow instead of giving it away for an hourly wage or commission.

If you don’t have the capital to start a new business, you can always use leverage by taking out a business loan and incrementally paying it back as your business picks up.

Using the banks money to make money is the proper way to leverage someone else’s capital to your advantage.

#2. Day Trading

how to make money during a recession

If you’re already invested in the stock market, then you’ve more than likely heard of day trading.

Day trading uses one of the biggest leveraging tools out there, the stock market/derivatives market.

Here, traders will require intense discipline in order to execute their trades with profit.

Day trading is certainly not for everyone, but if making hundreds of dollars to thousands of dollars per day sounds appealing, you can learn more about it here.

The incredible thing about trading the market is that traders can learn how to make money whether the stock market is booming or crashing.

This means that as long as you’re able to develop the skills necessary to become a consistently profitable trader, you will be able to pivot in a recession and actually make money while most of the economy faces turmoil.

Going on the offense means learning new skills and getting out of your comfort zone to be successful at something outside your 9-5.

franknez day trading

You can follow my personal trading journey on Instagram or Twitter.

#3. Monetizing a Platform

How to prepare for a recession.

Americans are monetizing on Facebook, TikTok, Instagram, YouTube and other platforms such as blogs and podcasts.

If the idea of creating content at scale intrigues you, monetizing a platform could be a great leverage tool for you.

The bigger you grow your audience, the more income you may earn from advertising revenue, affiliate marketing, sponsored content, or other streams.

But the key here is to provide real world value that can help your audience in one form or another.

My blog for example has helped thousands of people invest in the stock and crypto markets for the first time.

Retail investors were able to profit big from investments such as Bitcoin, Shiba Inu Coin, Terra Classic, AMC, and HYMC from early ticker updates on Franknez.com.

Those who took advantage of the information came out profitable before the markets began to tank.

But not everything has to be educational – many creators are publishing content on pretty much any niche that people find interest in.

A platform will help you pivot in a recession by working 24/7 for you.

How to Prepare Personal Finances for a Recession?

In terms of your personal finances, you’ll want to allocate a good chunk of your income into a savings cash account you can build in case of an emergency.

If your income is booming during a recession, consider investing in the S&P 500 index or in rental property.

Many opportunities will present themselves in times of an economic downturn, and when they do, we better be ready.

Becoming Recession-Proof

recession proof
How to prepare for a recession.

Becoming recession-proof is really about taking action.

It’s about creating something or developing new skills that will allow you to overcome any hardships that come your way during economic adversity.

Living paycheck to paycheck is hard, learning new skills is hard, building something new and getting out of our comfort zone is hard, so choose your hard.

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Read: Stocks Retail Investors Can Buy to Build Wealth This Decade

How To Better Prepare Yourself For The Next Recession

How To Better Prepare Yourself For The Next Recession

It is never too early to begin preparing for an economic downturn. What you do today can save you tomorrow. If you weren’t prepared for the coronavirus disruption be sure to also share this with a loved one. Here’s how to better prepare yourself for the next recession.

Pay Off Big Debt

One way to better prepare yourself for the next recession is to pay off big debt. Paying off debt will reduce the amount of monthly payments you have which will result in having more funds available to save or invest.

Pay Off Big Debt To Better Prepare Yourself For The Next Recession

Paying off debt also lifts the weight off your shoulders knowing you don’t owe any parties anything. Pay off your vehicle or any open credit cards. If you have a lot of debt find out what strategy we suggest using when it comes down to paying thousands in debt here.

Have An Emergency Fund

Have An Emergency Fund

Having an emergency fund is one of the single most effective ways to better prepare yourself for the next recession. Think of your emergency fund as a net from which you can fall on should things disrupt your plans. Recessions can lead to several hardships including the loss of a job or business. Having an emergency fund allows you to have access to capital in the event that the worse case scenario occurs in your financial world.

If you’re stuck on exactly how to create an emergency fund read about how to start it here. Franknez.com walks you through on creating a goal and then having your savings work for you so that your money multiplies through compound interest.

Our mission is to provide our readers with real world experience and advice to help further their financial knowledge and secure their financial future.

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Live Below Your Means

A great suggestions as to how you can better prepare yourself for the next recession is to live below your means. So what exactly does it mean to live below your means?

To live below your means is to live significantly below the threshold of your annual income.

Living below your means allows you to have financial breathing room. As a result, you’re able to save more money and increase the amount dedicated to your emergency fund. Here are some ways on how you can live below your means:

  • Downsize your home if you don’t need the ‘excess’ space.
  • The new vehicle can wait (practice delayed gratification)
  • Don’t over-indulge in jewelry or high fashion clothing (there’s a time for it)
  • Have less takeout (keep it in moderation – set a budget)
  • Resist the new gadgets – make due with the current (for now)

When you live below your means you essentially grant yourself access to manageable monetary means. Prepare yourself for the next recession by eliminating the stress of going paycheck to paycheck.

Continue Budgeting

Budgeting Will Help You Prepare Yourself For The Next Recession

Budgeting in general is a great winner habit to have. Budgeting long-term will help you achieve your savings goals and keep you living below your means. A great way to keep track of your expenses is to frequently log in to your bank account(s) and build awareness of where your money is going. We also suggest downloading the app MINT by Intuit. It tracks down your expenses and keeps record of all your accounts. It makes it super easy to keep quick tabs on your accounts.

Don’t Depend On One Source Of Income

What occurs when you depend on one source of income and then all of a sudden it’s completely gone or cut in half? This is what happened to 22 million Americans who filed for unemployment during the coronavirus pandemic.

Develop Multiple Sources Of Income To Protect You During A Recession

Learn to better prepare yourself for the next recession by acquiring additional skills and knowledge and learn how to create more than one source of discretionary income. Franknez.com has posts on how to start an online business and grow it, how to earn passive income, how to start a blog, side hustle ideas & so much more. Be sure to subscribe to our newsletter to be notified when new posts are published!

Prepare yourself for the next recession by generating income from a variety of sources.

Tip: By acquiring multiple sources of income you ensure yourself financial growth and financial security.

Develop A High Income Skill

Prepare Yourself For A Recession

What does it mean to develop a high income skill? This means earning a promotion, developing skills to attract higher paying opportunities, selling more, or becoming involved in anything that will increase your current income.

By increasing your income you gain monetary means to pay off debt and save money for a rainy day. This is a great way to prepare yourself for another worse case scenario such as a disastrous recession. If it becomes too difficult to develop multiple sources of income or it’s not within your time limitations to do so, developing a high income skill can certainly be a great way to compensate.

Tip: Do not spend more as you earn more.

Be sure you continue to live below your means as you increase your income. You will have breathing room and gain the confidence to face any financial challenge that comes your way. If you find yourself in need of motivation we suggest reading 10X by Grant Cardone. This book discusses how you can increase your income and meet your goals by essentially putting in 10X amount of effort in everything you do. Grab the book here.

Choose Your Industry Well

Choose A Good Industry To Become Recession Proof

One way you can better prepare yourself for the next recession is to choose your industry well. Take a look at the industries that thrived during the coronavirus pandemic vs the ones that didn’t. This is a sure way to identify which sectors are a ‘safer’ career choice.

Industries that thrive during recessions include:

  • Healthcare
  • Logistics
  • Accounting
  • Biotechnology
  • Automotive
  • Economists
  • Utility Companies
  • Funeral Services
  • Veterinary
  • Courier / Freight
  • Telecommunications
  • Online Businesses

Become recession proof by choosing a great career that won’t die down during an economic distress.

Increase Your Credit Score

Increase Your Credit Score To Prepare You For A Recession

The people who are getting approved for 0% APR credit cards and for home loans are those with a great credit scores. Keep in mind, recessions are also the time to learn how to identify new opportunities. Qualifying for an affordable home while the market is low could be your time to make that move; it might not. Perhaps a 0% APR credit card can help eliminate other credit card debt and help you further your personal finances. A high credit score opens opportunity, even during a recession. Start building your credit now; your future self will thank you.

It would be wise to prepare yourself for the next recession by increasing your credit score due to the opportunities that open up with credit. Read: How To Increase Your Credit Score | Reach Excellent.

Diversify Your Investments

Another tip on how to better prepare yourself for the next recession is to diversify your investments. Don’t keep all your eggs in one basket. Franknez.com has posts on how to earn interest from a high yielding savings or money market account, how start an online business, and how to invest in the stock market step by step!

Franknez.com teaches many ways you can diversify your income!

Diversify your investments by allowing your money to work for you in a variety of ways without you having to put up with much maintenance. This strategy will require you to take some personal risks though it isn’t as scary as it actually sounds! Risk plays a big part in securing your financial future. Prepare yourself for the next recession by learning this important wealth building skill.

Here are some ways you can prepare for a recession by diversifying your income:

  • Move money into a market or high yielding savings account
  • Build a portfolio with index funds and ETFs (stocks)
  • Set money aside in a personal savings account
  • Stack your checking account

Read: How To Invest In The Stock Market (Step by Step)

Understand The Importance Of Networking

Learn to identify people of value who can play an important role in your life when it comes to health, career, finances, mentorship, and partnerships. It is important to build relationships with people in these categories because they become connections. These links of relationships are known as a network.

Networking Will Help Prepare Yourself For The Next Recession

Better prepare yourself for the next recession by building a strong network as it can prove useful during the times of hardships. If you lose your job you might know someone you networked with who might be able to help. Whether its recommending you to an employer or even going to the greater lengths of personally hiring you, networking opens opportunities.

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Please subscribe to our newsletter if you find value in our content! We are here to help you make great financial decisions in order to help you secure your financial future. Let us know what you’re doing to become recession proof. If you have other tips on how to better prepare yourself for the next recession please share with our readers!

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