Economic calamities happen. Some are worse than others. Depressions are, by far, the worse type of economic downturn. But they are rare. Recessions, however, are more commonplace. During recessions, millions lose their jobs. In the aftermath of a recession bloodbath, many lose their homes, families are fractured and careers damaged, temporarily or irreparably. During recessions, those affected the worst never fully recover. For them, life will never be the same.
In a given career, an individual could likely expect to face 3 or more recessions. It’s the nature of capitalism. What goes up, must eventually come down. Since the Great Recession of 2008/2009 ended, we have seen anemic economic growth in most parts of the world. The United States, it seems, has fared somewhat better. Still, in the United States, today, there are approximately 30 million who are either unemployed, underemployed or who have given up trying to find work. That is 14 million more than in December of 2007. For these individuals, the Great Recession never ended.
So, if it’s likely that you will have to face future recessions, what can you do to avoid being one of the casualties? Below are five strategies that will not only help you to excel in your career but make you immune to economic downturns. In effect, these strategies will make you Recession-Proof:
- Become an Industry Expert – When you become an industry expert you are the last to get fired. You are indispensable to employers, customers and clients. To become an industry expert you need to make a daily habit of growing your knowledge-base. This means not only acquiring new knowledge, but also reinforcing what you already know. To become an industry expert you will need to devote between one to two hours a day to reading and learning.
- Create Multiple Streams of Income – Those who fare best during recessions are the ones who have built up over time multiple streams of income. In my research, immunity seems to occur at the point in which you have created at least three streams of income. When you have multiple streams of income, when one more more streams is adversely impacted by a recession, the remaining streams come to the rescue, like knights on a white horse. Building multiple streams of income takes many years, but it virtually guarantees that you will survive a recession, life in tack.
- Be a Brand – Those individuals who have successfully branded themselves are the most sought after individuals in any industry. Think Tony Robbins, Taylor Swift, Warren Buffet. While the flood of money into the bank accounts of these individuals may drop somewhat during a recession, they are still in great demand. Companies and events will still hire Tony Robbins for motivational talks; Taylor Swift will still be selling her music and will still be hired by the wealthy for private events; Warren Buffet will still have more devotees than he can manage, investing alongside the “Oracle of Omaha”.
- Forge Rich Relationships – Building strong relationships with successful individuals means doors will be opened to you that are closed to everyone else on the unemployment line. When recessions hit, those doors often seem to be padlocked. The more successful individual relationships you forge over time, they more individuals you will have to unlock those doors.
- Create Trails – Some call this residual income. Residual income is cash flow that continues to flow to you as a result of previous efforts. Those previous efforts represent assets you have built up or created over time that dispense income. It might be rental income, guaranteed annuity income, dividends, interest income or any number of cash flows coming from your previous efforts of building assets.