How to Financially Get Out of the Recession Rut Quick
By: Mia Gradelski
Tags: Life Lessons, 2020, Business, Covid 19, 2021

Image by John Cameron

According to Google’s 2020 Search Results, by no surprise, ‘pandemic’ and ‘COVID’ are the most searched terms of the year. It infiltrated our lives and every time we step outside, we are reminded wearing our masks that 1 out of every 1 thousandth American we know dies from this deadly virus each day. At this point, we are done hearing how this virus has changed our lives in every shape and form. We prefer to complain because it is easier than being nice and positive, but at this point, we want to take another route, preferably away from this country. We are sick of being mean, stubborn and complaining. All feeling hopeless at this point.

Everyone is struggling in some way. If you are dealing with your finances, unable to pay your bills, emotionally drained due to a loss, or mentality stuck inside all day baking banana bread gaining weight, whatever it may be, remember you are never alone. But saying that isn’t enough. We need to rely on something that motivates us and there is nothing more that gets us going than money.

But where can we get it and why money?

Everyone is searching for more of it and the last place we want to rely on is our handy dandy government or president. They teach the worst lessons. In school, if you don’t do your homework, you fail the class, at home, if you don’t wash the dishes, you get grounded, if the government doesn’t provide the American people stimulus to reboot the economy, um… recess time and resume at the end of January.

No rush means nothing done. I’m not advocating to speed up time because I would rather have something done in a quality fashion than poorly done on time, in most circumstances. But money can destress anyone when used in the right way and can in fact make your life better if you haven’t noticed.

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Money Moves

But before we proceed with learning how it can make your life better, it is crucial to understand that it won’t turn your life upside down nor make you a better, happier person. That is all on you to do. The real gifts in life are achievement and appreciation which come from inside. Everything else can be earned from your paycheck or some side hustle that can be put to good use to give you a temporary good life.

In most cases, to make money you should have money but with these sneaky tactics to get you out of your sticky financial situation, that won’t always be the case anymore.

Airbnb + Rental

Let’s say you are one of the 5 Americans that cannot pay their rent on time these days and afraid of eviction. First off, it isn’t completely your fault. Only partially. COVID hit like a bullet and you didn’t expect the worst and not the world to always go in your favor.

Step one, never think like that.

Step two, to be wealthy it’s all about the mindset you possess. Think outside the box a little. An average millionaire has 9 passive income sources and one of them equates to all combined: rental income. Leasing out a property to a tenant could be a full-time job after putting in dozens of manual labor, signed contracts, house hunting, and time+money upfront but also pays you a full-time salary at the end of the year, depending on where the property is located, the demand, size, space, and various other factors but certainly is a nice chunk of change you could keep in your pocket that you won’t just get from drop shipping Ali Express.

Instead of complaining you don’t have space or money, rent out a bedroom or two in your apartment and go sleep with a friend or parent’s house for a while. With interest rates at historic lows, any broke college student would be thrilled to live in your property and pay you, just make sure you have renter’s insurance so they don’t trash the place.

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Stop Clutching Your Dirty Toilet Seat Infested Phone

On average, our technology usage has gone up by 400% since March. What does 400% even mean?! That is crazy and it is all due to feeling the pressure to work all the time since we seemingly have more time always stuck at home.

Besides setting up a work-life balance because we always hear about this miraculous plan but never gets executed or works, ditch that iPhone for a book or conversation. Trust me. You don’t need 50 likes on that photo and none! I bet you don’t’ even know 50 people. I can’t name more than 10. It will serve you better in the long run mentally for your eyes and brain and for your intellectual future to put that dirty, seducing tech away. We are so fixated on being present that we sometimes neglect how we will feel in the future if we consume this much information, news, social media, and content. I bet you 80% of what you are consuming daily won’t serve you in a day. That is the scary truth about our addiction to our phones. Don’t fall trap to it and you will actually be more present, healthier and 10x wiser but most of us still choose to be dumber and lazier.

Stop Pretending This Won’t Be Over

Planning for the worst, hoping for the best is the smartest slogan you can carry, and those who’ve suffered during this pandemic, hopefully, have learned that hard lesson. Financially, it is impossible for a recession not to end. Looking back in history, from the 2000’s tech bubble, 2008 housing crisis, 2011 gold boom, and 2017 electronic currency fad, and all of the small hiccups and volatility that all got washed out by bull runs, faded after a few months, let alone few weeks/days.

Obviously, the housing crisis was more severe, put millions out of work, and was a black swan event compared to the rest of the three but that doesn’t mean it didn’t end. History does repeat itself. Every 10 years to be exact so don’t expect COVID to last that long. It will be over by the time you grow your 200th mustache and you will find a way out but the hope isn’t going to serve you any good if you don’t apply it.

With your finances, setting up an emergency savings account, contributing money towards a post-tax compounding interest account (ROTH IRA), and saving more than you spend are some of the basic and easiest ways to make sure you are prepared for the next bat to sprinkle a disease. Bad things aren’t unexpected. Never think that way or you will be in trouble. Being optimistic isn’t great because it blindsides you more.

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You have to create your own happiness

Regardless of how much money you have, if you are dealing with a disease or depression, money cannot solve those problems and you are stuck. Not on the streets but in your luxury mansion. What a difference. Sure you can get the best medical treatment in the country and visit a $900 therapist every week, but if you don’t take the initiative to change yourself and focus since anything can be curable with the mind-psychedelics, then there is no point in earning more.

This pandemic has tested our patience, agility to change, and how we handle boredom. We all hate boredom becuase we feel useless and quite stupid with no work to do. That is a sign that you are workaholics and that needs to stop before it becomes burnout which takes months to recover from as one myself.

Being bored is a must. It rejuvenates your mind and sparks creativity more than any doing any other activity, even skiing. In fact, I come up with worse ideas and establish writer’s block when I’m constantly doing errands and driving. I cannot concentrate. Whichever way you find your happiness, make sure it comes in pure and simple forms as well like being bored. Don’t expect to be happy only when you get that Porsche or go to the amusement park because that’s unrealistic and won’t happen every second you have nothing to do. Life is enjoyable in the little things. Prioritize them and you will be the happiest and financially healthiest in the land because joy spreads to all areas of life.

Education is the solution to all boredom

I sound like a broken record at this point but I cannot stress the importance of financial literacy. My friends and I and don’t worry, I’m not writing behind their back, they are of course subscribed to BNF on their own will, had our weekly Friday Zoom call yesterday and as much as my pals love talking about fast fashion, boys and spoiling the show, The Crown, I don’t know if I would call myself the adult in the group, but certainly over that teenage girly girl stuff they are always into. They know I’m always focused on helping them out financially and emotionally like a parent. I think that’s the reason we are friends. I’m their free advisor but I like it. More practice = education.

Anyway, the whole time when we were speaking, I was disappointed to hear that they went out of their way to take out loans to buy luxury goods. I wasn’t surprised since they have no financial literacy or education on what debt is. It isn’t completely their fault since their parents or school didn’t teach them, but I was still truly astonished that taking out loans to purchase depreciating invaluable junk to impress people was allowed by the bank and their own minds. I don’t know if I was more shocked at the fact that the bank doesn’t care about its customers’ own financial health or that a bag could cost 60 grand.

With a little Common Core Education and weekly reading of Boiled Not Fried (I hope you’re watching Sam and Hannah in particular, worried about you), would serve them wonders and fewer regrets in their future. The best investment is yourself. Be patient long term and less impatient short term because you won’t see the benefits until you need to use that knowledge at any time.

Image by Oni Obeyeador

If there was a way to get out of any rut, then I wouldn’t be here writing for you all boilers but the truth is, getting a better grasp on how your financial situation is taking a toll on the rest of the areas in your life, is a great indicator for success down the road. I hope you take some time before the New Year to adopt or at least attempt to imagine yourself following one of these tactics that’s gotten me out of depression with cabin fever that will for sure go away, eventually with my forward realistic mindset.