How to Recession Proof Your Income
As you may or may not be aware of… the United States is in a recession. With higher gas prices, higher food prices and the risk of job loss… What can you do to ensure your income?
First of all, you want to make sure you have more than one stream of income. If you are doing all your fishing from one pond and that pond goes dry you could end up in trouble.
Selling information products (ebooks, etc…) or having websites that appeal to different demographics is a great way to recession proof your earnings. This is because you can have customers from around the world. Just because the United States is in recession that doesn’t mean that other countries necessarily are.
Keep your business costs down and put money in savings. Having a reserve both for your own expenses and for any business expenses (hosting, etc…) is vital. If you suddenly lost your day job, you will want income to hold yourself over while you build up your online income.
In a nut sell: Have customers or website visitors that cater to different demographics and markets. Just like a stock portfolio, you can reduce your risk with diversification.
Try not to have more than 25% of your income from any one source.
Progress Overview
the point of this being….?
Ding, Ding! Amy, I appreciate this post greatly. While I haven’t thought as much about the recession as I should be, your comment that just because the US is in a recession doesn’t mean everyone is. All the more reason to appeal to other markets, and do niche research for markets around the world
@kuhtrinerovegno, the point is that you shouldn’t have all your income come from the same place.
I thought you were a Dave Ramsey fan? He has emphatically stated repeatedly that we are NOT in a recession, just slow growth economy. However, I still agree with what you are saying. Never put all your eggs in one basket…recession or no recession.
I am a Dave Ramsey fan, but I disagree with him on that point. I believe we are in a recession.
We are definately in a recession!!!
I think we’re going into a recession. By the economic definition, 6 consecutive months of negative growth of the gross domestic product, can only be determined by the time we’ve been in a recession for at least 6 months.
Even though the GDP may continue to be slightly positive, many local areas are in a recession. In South Louisiana we’re actually in a serious recession and the New Orleans economy is still mostly collapsed. They’re below a recession economically.
I don’t believe government spending can continue at the huge deficit its currently at, and at the level of the national debt. The trade deficit with China was $1.53 trillion on January 29, 2008 and it grows by $1 billion per day. This can’t continue without serious economic consequences to our country.
Sherri