dear viewers welcome to yet another episode of your life your money there is more and more noise coming which indicate that there is the possibility of a recession happening in the world will it really happen will the world go through a recession I do not know but what if the world goes through a recession what effect it might create how it might impact you and most important how you can stay immune from the ill effects of decision in this episode I'm going to discuss I'm going to give you nine points if you follow will make
sure that you will not get affected by the problems of incoming recession this is NRI money clinic for you and I Dr chrab your financial guide for a happy [Music] living NRI money Clinic no hype just the right advice dear viewers I get to read a lot of information about the possibility of recession at some point of time the world will definitely go through a recession when it will be no one knows it could be immediate few quarters down the line few years down the line the recession booms bus bull market bare Market are all
part of the cyclicity of economic activity they cannot be prevented we should know how to wait through this particular cyclical behavior of the markets whenever the recession happens it will have its impact what is recession a recession is economic contraction during recession there will be unemployment people may cut on their salaries people may not spend the companies will not spend governments are worried government will have action and recession when it happens in small pockets of the world may not affect the whole globe as a whole but if recession were to happen in countries like us
the developed world or countries as large as China then needless to mention it will have Global impact you could be living in any part of the world but if recession will to happen it will leave one or the other form of impact on all of us what is that we are interested in if that were to happen how do we save ourself how do we minimize the impact that happens on our life let's examine these things a little bit in detail and what we can do at our end to save ourself here are the nine
point for you number one build a robust emergency fund when it comes to question of emergency fund people become very casual and they say emergency fund of 2 months 3 months is adequate that is not adequate there are many things that could happen in your life there are things that you have planned out there are things which you just cannot postpone there are things which might come without you expecting it I would say at least build an emergency fund where in which your life does not get impacted at least for next 2 years I have
done detailed videos on emergency funds how to build it how to calculate it how you should manage your emergency fund where you should keep this money designated as an emergency fund all these things are there in the detailed videos we have done you can just click on the playlist financial planning on our Channel these videos are listed there watch it and be guided from that point number two cut on the unnecessary expenses when it is obvious that there will be a rough road ahead and you will go through economic difficulties you do not know whether
you will have a job or not whether your bonuses will be cut or not when you do not know all these things the best way is to cut your expenses look at your expense profile where are you spending your money are these the needs are these the wants if it is coming in the section of wants which means these are discretionary nature if you do not go ahead with those expenses it will not materially impact your life probably it's a good idea to postpone your wants for a future Day When Things become clear when the
economic activity gives better situation for you to spend this so restrict yourself to needs think where you can save money cut down on that expenses whatever you save will help you to ride the rough period of resist Point number three build a diversified income Source I'm a great proponent of having a second income you have a job you have a business or you have some stream of income Professional Services or whatever it is which gives you your livelihood and regular flow of cash when recession comes all these can get affected but suppose if you have
additional sources of income could be a dividend could be a rentals could be a royalties could be that second job that you are doing could be something else which is not related to your current employment which is giving you the cash that will help you to tide over the rough period so when you are running well use the resources that you have your savings and invariably try to create a second income do not get worried about this asset will give me low returns this asset will give you high return your focus should be on creating
a cash flow the more the sources of income that you'll have irrespective of the return if your salaries were to be cut or if you were to lose job those sources of income will help you to tide over the situation fractional commercial real estate in India is a very attractive feature insurance companies have come up with second income options for you bank fds can give you a good rate of return today you dollar Investments which are in a very high interest rate period if you are able to get nice good second income opportunities by investing
in bonds that could be another source of income nevertheless use your savings in a wise way to create a second income a diversified cash flow let recession come anywhere but if you have this Diversified source of income it's very unlikely that the recession will affect you point number four focus on skills and education when recession comes it is not that everybody will be jobless who will become jobless the persons whose skills are not adequate enough the companies if they feel that this person can be disposed of his services are not required such persons may lose
the job or may not get the raise may not get the bonuses what if you had such a skill which the company just cannot let you go that saves you from the recession when you are working it's your responsibility to build constantly upskilling yourself and adding more education more relevant courses to your CV so that the companies will find you very attractive and they don't want to get rid of you so upskilling yourself and adding more qualification is one of the finest way to stay offload during a recessionary period Point number five pay down your
debt which has very high rate of interest your personal loans borrowings from friends and relatives if you have agreed to borrow for a higher rate of interest all these things will come and bite you I have seen in the last of so many people they maintain a fixed deposit which hardly gives them 6 7% interest on the other side they'll be maintaining a personal loan which is borrowed at a very high rate of interest Banks also deceive you they will say I'll give you zero interest rate but you have to pay onetime charge of so
much of processing fee at the end of the day these are going to become your expensive loans if you haven't taken anything now in anticipation of recession make sure that when you get such promotional calls stay away from such debt if you have already won evaluate your financial situation see if there is any cash on the sidelines if you can pay off those High interest bearing debt that's a good idea do not borrow more right now try to create whatever the high debt loans that you have from whatever the resources that you have which is
not performing well for you you may be having some schemes of mutual fund not doing anything great or you have invested in a mutual fund it has given you a very high rate of return probably it's time to book The Profit clear this debt that is a wiser move the message is don't take High interest loans and if you already have one try and see how quickly you can clear it up Point number six you have to invest wisely when it comes to question of investing people get carried away by the fashion of the Season
see small caps are doing very well micro caps are doing very well gold is doing very well land is doing very well at every point of time in history there is something which is performing exceedingly well if you're a person who thinks investing in the fashion of the day makes you money make no mistake if anything which is in fashion that will not help you make money rather you are close to losing the money your investment should be based on rational thoughts time tested principle assisted by the experienced financial advisers you have to maintain right
asset allocation when you say asset allocation there should be a balance between debt and Equity there should be investment into different asset classes be it land Building fractional commercial real estate debt funds bonds gold Equity mutual funds anything could be fine but there should be a good balance your Investment Portfolio should be working in such a way even if there were to be a recision there should be some component of your Investment Portfolio which should still be performing very very well if you're a person who is chasing the return make no mistake but this is
are going to be your testing time this is the time you better get hold of somebody experien to help you with this if you are a do it yourself investor it is time that you check what you have done is right or wrong if you think you have not done well if you are in a dilemma get hold of some professional to assist you to invest wisely the key Point here to remember is invest in all asset classes maintain good balance between debt and Equity make sure that you invest in all types of of investment
Avenue Point number seven avoid doing large purchases which are discretionary in nature if you want to buy a house and you have been waiting for long probably it makes sense for you to pause this idea for a while hold on for some time feel comfortable see what is going to happen and probably postpone it for a couple of years when things become clear when you are very sure that your job is not in danger you have the required amount of cushion you have built sufficient emergency fund they're not going to move to another part of
the world and this is not my need this is my want I can postpone it avoid all large purchases if something is very essential and if you're comfortable that yes my finan is permit my job is very secure nothing can go wrong you can continue on your path but if you are doubtful about it it's best you avoid large purchases somebody who wanted to buy a car and you feel that if I don't buy that car for next 2 years is not going to be a big problem it makes s for you to postpone it
wait for clarity to emerge wait for your finances to reach a much better position then you make the purchases at this point of time avoid buying into large purchases which are discretionary in Nature Point number eight stay informed and well advised knowledge is power application is wisdom when you are informed you know at least knowledge when you know something is likely to go wrong you are prepared if you know the road ahead is rough you drive carefully if you don't know you'll be driving at a high speed or you could be driving in a very
rash way but if you know the road ahead is going to be a rough one or top seater V or with full of bends then you drive carefully so you have to keep yourself AB breast with what's happening in the world is there a geopolitical problems are is there a crude shock what's happening to the interest rates what is happening to the politics of the day what is the popular debate that is happening around take cues from it I'm not saying that you have to react to that but you should be well informed about what's
happening in the world that's information part the wisdom comes from which information to assimilate which information to just neglect which information to act upon that's the wisdom part many times what happens is that people cannot get the wisdom part because they do not have the experience in such cases all that you have to do is get hold of proper advisers good financial planners people who have an ethical background people who have spent enough time people who have gone through multiple Cycles in the market they are the best persons who can guide you to build your
portfolio and to neglect certain news or to act on something which is might impact you and better get advice from such people and if you're somebody who is looking for such advisers you can make best use of services provided by N Money Clinic N Money Clinic has team of experts which cater to all these various areas of investment reaching your life goals education funding retirement planning building a house all these things fund management is what our experts look into if you have a need of an expert advice you can make best use of services provided
by us all that you have to do is click on the link which is given below which takes you to the WhatsApp and send us an exploratory message and one of our team of expert will help you to design your portfolios which can remain immune to the incoming recession Point number nine maintaining good health the last but not the least the best way to conquer a recession is maintaining good health health Place very important both physical as well as mental health if your mental health is not good enough and if you are not in a
good State of Mind to challenge all these problems that come in your way then even your physical health will not cope up with it so exercise well diet well practice that yoga make sure that everything that takes you to maintain good physical health and mental Health when you are physically fit enough when you are mentally fit enough any troubles that come in your life you will be in a much better position to handle it it doesn't cost you a great deal of money to maintain a good health let that beginning happen today dear viewers hope
the video that I have done today helped you to understand how you can prepare yourself in the event of recession and how you can immunize yourself from the ill effects of the recision if it help you to get prepared do give me a thumbs up if you're somebody you yet to subscribe for this Channel please hit the Subscribe button and press the Bell icon do not forget to share these videos with your near and dear ones and friends and relatives thank you very much for watching this episode on NRI money Clinic I shall be back
with you with yet another thought on your life your money next week till then stay safe and Jay hin press the Bell icon for more details and subscribe our Channel [Music]
