this video is brought to you by sharesight sick of tracking your performance manually track capital gains dividends and currency fluctuations easily and when it comes to tax time have everything you need ready to go with just a click of a button try sharesight for free or use the referral link in the description to get four months free when you sign up to an annual plan so the first step at a basic level is to ensure your own financial situation won't be heavily impacted by a recession ultimately you want to be able to use a recession as an opportunity you don't want to be at the mercy of its effects so i won't harp on too much about these things but three smart things you can do to prepare yourself for a recession firstly eliminate high interest debt you know like credit card debt secondly try and set up a little emergency fund you know five ten thousand dollars and then finally make sure you have some diversity in your income streams i mean just think about how NUMBER_TOKEN played out for a lot of people i mean a lot of people lost their jobs so it's a smart exercise to force yourself into that mindset that your job actually isn't secure even if it is you know think how would i get by if i lost my primary income source right now then start to build those pillars that would help you get through you know if i lost my job i would want another way to make money you know multiple income streams i would want a stash of cash that i could access immediately to help me pay rent and groceries okay emergency fund then lastly i would hate to have credit card debt that i couldn't pay and it starts spiraling out of control right better eliminate high interest debt while i can you know if you can think in that way and act now when a recession comes along you won't have to scramble to stay afloat you'll be able to get through just fine and you might even be able to use it to your advantage so what do i mean by that well in a recession asset prices will come down you know stocks will fall real estate will fall and that presents opportunities for investors no doubt about it so what are some tips to ensure that as an investor you're prepared for an upcoming recession well step one is to avoid being a hundred percent invested during a crazy speculative market kind of asking for it now don't be confused you definitely want most of your money invested most of the time as they say time in the market beats timing the market being invested is the best place to be but think about this all of the world's best investors right now have sizable amounts of cash sitting on the sidelines why do they do that well it's because as warren buffett says if it starts raining gold you want to be out there with a wash tub not a thimble the worst situation to be stuck in when the stock market crashes is to have no cash lying around to take advantage of all the deals and the thing is stock market crashes are rare events but exploiting that opportunity when it arises can set you up for much higher long-term returns i mean stock market crashes are the kind of opportunities that literally do help people retire sooner but the window of opportunity is very small i mean usually markets bounce back quite quickly after a stock market crash have a look at this on the left we see big negative events in the market you know wars terrorist attacks the gfc then look at the s
START_SPONSOR_TOKEN this video is brought to you by sharesight sick of tracking your performance manually track capital gains dividends and currency fluctuations easily and when it comes to tax time have everything you need ready to go with just a click of a button try sharesight for free or use the referral link in the description to get four months free when you sign up to an annual plan so the END_SPONSOR_TOKEN