Rich Habits Podcast 3: How to Prepare for a Recession
Mar 14, 2023
This discussion highlights essential strategies for weathering a recession. Listeners learn to build a realistic budget and understand the importance of debt-to-income ratios. The hosts emphasize diversifying investments across assets like gold and Bitcoin. They also provide advice on polishing resumes and expanding income sources to bolster financial stability. Additionally, practical tips on smart savings and the risks of varying loan rates keep the conversation grounded in actionable advice.
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Build A Realistic Budget
- Build a zero-based budget allocating every dollar until your budget hits zero each month.
- Alternatively, categorize expenses as essential or non-essential to simplify budgeting and control spending.
Master Debt-To-Income Ratio
- Understand your debt-to-income ratio to manage finances and mortgage eligibility effectively.
- Keep your debt-to-income ratio under about 35% to maintain financial health and borrowing power.
Save With Treasury Bills
- Save money by investing in government-backed treasury bills earning about 5% annually.
- Use easy platforms like public.com to buy treasuries with no lockup period and no fees, keeping savings liquid and growing.