Oh good, you just checked the news, and inflation is still high, tariffs are increasing the cost of living and economic uncertainty is looming around every dark financial corner. You, along with many Americans, may be wondering how to protect your finances in the case of a downturn.
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As a billionaire entrepreneur and real estate investor, Grant Cardone has weathered multiple economic storms, and he’s sharing four powerful strategies to help you recession-proof your finances. From boosting your income to rethinking how you save and spend, these tips can help you stay ahead when the economy slows down, or downright tanks.
Increase Your Earnings
The best way to protect your finances during a recession is to focus on earning more money, said Cardone.
“You have to make more money,” he said. “Everybody’s charging more for everything, so you have to make more money. That means you have to be better at whatever it is you’re doing. You have to be exceptional at it.”
Learn More: Here’s How Much Cash You Need Stashed To Survive a Recession in the Midwest
Curb Your Spending
Now is a time to be extra intentional about how you are spending your money.
“People need to figure out a way to be more efficient in what they spend money on,” Cardone said. “You cannot do goofy s— right now. This is not the time to be reckless with your money.”
Cardone said to cut down on discretionary spending on clothing items in particular.
“You don’t need any more shoes or slacks or purses,” he said. “It’s dumb.”
Don’t Save Your Money — Invest It
Inflation makes the value of your money decrease over time, so if you keep it in a savings account, you are actually losing money, Cardone explained.
“You cannot save money right now,” he said. “This is a screwball concept that made banks rich. Your mom and your dad, your uncle, your aunt, your grandparents — all believed in saving money. It made banks worth trillions of dollars.
“People need to quit saving money in institutions — they need to start operating like an institution,” Cardone continued. “Start investing that money the way the institutions do.”
Start a Business
According to Cardone, “It’s a great time to start a new business.”
Cardone believes that recessions are actually a smart time to start a business, so if you have an entrepreneurial itch, now is the time to scratch it.
Caitlyn Moorhead contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: Grant Cardone Shares 4 Ways To Protect Your Money in a Recession
