Overcome Recession and its challenges like a Pro
Recession means a mild decline in economic activities reaching up to an extent that leads to economic depression. Though there are countless factors responsible to define a situation of recession. When the value of goods and services gets increases or the value of money decreases recession starts swinging its sword. Or in simple words, the market is all demand and supply. If there is more demand for certain products and less supply, it will result in inflation. But if the Supply of the product is more and demand is a less then it results in recession. In economic terms, a downward trajectory in the GDP path it is called a slowdown. And if these slowdown trajectories continue for a long period, then the economy enters into a recession. Also, if the trajectory goes negative then it will be called Depression which becomes a nightmare for any developing country.
Mostly recession remains for a period of 1 or 2 quarters of a fiscal year. But if the trend gets continuous for a year or two it becomes global and recession becomes depression. It happened once in 1929 which was called the great depression and remained for almost a mind-boggling 10 years. Comparing the trend of the recession of 2008, International Monetary Fund headquartered in Washington D.C. has given the same projection report in 2020. Not just MSMEs but even large enterprises were impacted by it. Their sales and profits was reduced as a result of layoffs and cost cuttings happened. There comes huge spending cuts and credit allocations get reduced. We have already seen a layoff scenario in the IT sector 2022-23 fiscal year where giants like Meta, Twitter, Amazon, Alphabet, and Infosys have started doing layoffs. It is estimated that almost from over 1000 IT companies over 2 lac jobs have been laid off.
We must always be optimistic about better economic scenarios but let’s assume that the coming recession is inevitable. So, it is better to be prepared with the right planning to overcome such a situation and make the best out of it. Experts suggest not buying things that are not on your needful lists and investing in things that give you higher returns. Let’s see how many ways you can make the most out of the recession period.
Do not panic but analyse: Analyse how much cash in hand you are having or if is it enough to make the best for the coming six months. What are your monthly living expenses? Do you have any debt or repayments to keep CIBIL on top because it’s always hard to be on time in repayments when the market is low? Also need to check for any upcoming events like marriages, and travel and plan accordingly. Or do you have any medical expenses coming? Or how you can continue with your SIP investments. All you need to do is analyse all the permutations and combinations and make a proper allocation of funds in a way that all coming expenses will be managed and yet it doesn’t have much impact future planning.
Alternate Source of Income: It is very possible that you have certain alternate skills that enables you to have another income source. Trading in stocks has always been a side income source for many financial geeks. They treat it as an asset for the long run which indeed gives a high return on long-term investment. But a day trader also earns on daily basis through Intraday Trading. There are other ways like broking for land or house, trading in commodities or even acquiring technical and computer skills that can provide you with filled hands.
Real Estate Investment: Since fear-mongering has started, it’s time your hard-earned money or savings get multiplied when you can buy land which is one of the safest forms of property investment. Especially if you are living in the USA, UK or Europe recession may be standing on doors. In India, it seems it may or may not have much impact though due to high inflation, interest rates are been increasing by banks. In such a scenario, you need a secure form of investment and land in such a period is a time-proof investment. Over time the value of your property get increases and we have seen a post covid period how rapidly buying and selling of properties got to increase. As a result, people have earned multiple posts from COVID through the real state. Real Estate is a field where demand is always high and supply keeps on decreasing. We don’t need to become economic geniuses to find out why land is still one of the most sorted forms of money-making investment. Also, this is the type of investment where your money turns into the real form of the asset whose value keeps on increasing. The scope of investing in the land has reached its pick that people started investing in land fractionally.
Yes, Fractional Investment or Fractional Ownership in land is a new form of holiday homes Investment people are interested in. In Fractional Ownership, you can buy a part of big land or rental house whether commercial or residential to get a higher return on money. You can invest in attractive and ready to use residential properties through PROPBNK enables you to buy or sell both. Go through www.propbnk.com for more insights and knowledge. (To know more about Fractional Investment read Blog 1)
Fractional ownership enables property investors to own properties which seems far from your reach. And multiplying your funds through land investment in times when recession knocking on your door is the best way your future funds get secured. Fractional Ownership especially seems to be a perk for new entrepreneurs or angel investors where they put their hard-earned money in future holiday homes. Many investors are now looking forward to invest in commercial properties or residential homes or resort through fractional ownership in beautiful places like Uttarakhand or Himachal Pradesh where they can use those properties either for a good rental returns or set up a resort, farm or agricultural land business.