ARE WE IN A RECESSION?
Well, it depends on what part of the world you are living.
But if you are in Africa,
The World Bank predicted that third world countries’ economy would shrink by 2.1 per cent, 5.1 per cent during 2020.

They turned out to be right after all. We can all agree that SAPA got multiplied after the lockdown of 2020.

Since then, things haven’t really turn out well for a lot of third world countries.
As a result of the failing economies, there have been lots of businesses shutting down, mass umemployment and massive decline in GDPs of these countries affected countries.

And in order to survive people are beginning to turn to ponzi schemes that are unknowingly driving them deeper in recession. If they knew better, they would come out of this recession having more than they can spend.

I will be sharing 4 financial proven principles that will make you have it easy in a recession. But first of all-

What Is a Recession?
In a recession, gross domestic product contracts for at least two quarters. In a typical recession, GDP growth will slow for several quarters before it turns negative. A recession begins when the economy reaches a peak of economic activity and ends when the economy reaches its trough.

DIFFERENCE BETWEEN RECESSION AND DEPRESSION
A recession is a widespread economic decline that lasts for several months. A depression is a more severe downturn that lasts for years. Considering how terrible things have been for many over the last 7 years in Nigeria, could we say we have slides into Depression?

CAUSES OF RECESSION
1. Loss of Confidence in Investment and the Economy
2. High Interest Rates
3. A Stock Market Crash
4. Falling Housing Prices and Sales
5. Negative GDP
6. Deregulation
7. Bad Leadership
8. Wage-Price Controls
9. Post-War Slowdowns
12. Deflation
11. When Asset Bubbles Burst

HOW TO PROFIT FROM RECESSION
I must not fail to mention that
The secrets to living a successful life is so simple that it passes by the ears of the poor because it considered nothing.

The secrets are common however, very few understand it.

(1) Cut down on your spending.
There are two ways to be rich, by earning more than you spend or spending less than you earn.

Since we are in times when it seems incomes are dwindling, it is only safe to spend less than we earn.
-Seek ways to always spend below your budget.
-Cancel unproductive subscriptions.
-Focus on only productive expenditures.

(2) Build up your capital/credit score
Save up what you can to raise up the capital that will create you passive income in the future.
-Ignore financial experts talking down on savings. Do not look down on a little beginning. Savings is the starting point, as you grow, you will learn how money works.

(3) Avoid bad debt
I said “bad debts” because there is good debt.
Do not borrow for pleasure or liabilities.

(4) Invest into the failing economy
There is always a panic during a recession, people always to sell what they can and hold on to cash for survival. They forget one thing though, "Things will always get better".

-Buy low and sell high.
Look for what can be sold high when the economy bounces back and buy it. Don't hold back. Your survival is in your ability to buy profitable investments not hold on to cash.

-The economy will always bounce back.

I explained extensively the above 4 secrets on how to profit from a Recession. Kindly click on the link below.


https://www.youtube.com/watch?v=LPlQvKNVD5U