Recession connotes a negative feeling. A feeling of lack, poverty, pain and loss. Yet some of the most successful companies such as Fed Ex, Microsoft, CNN, HP were started during a recessionary period by the founders identifying and filling a need.
While we hear so much about how the net worth of billionaires and millionaires are shrinking, there are lots of millionaires increasing their net worth or being made. These rich people have created a recession proof lifestyle and do more than survive during a recession?

The key to understanding a recession is that the country's economy is different from your personal economy. In fact the economic recession provides the greatest opportunity for taking your life into your own hands. Just like having a raining season and dry season, individuals must understand that the financial cycle also has seasons like economic boom and recession.

Below are 5 strategies for creating a recession proof life-style. While the figures below my seem very frightening the important thing is to learn from the approach taken by the individuals.



1. Diversify your Income Stream: Meet Ukraine-born billionaire Len Blavatnik who is the richest man in Britain. In 2011, he lifted petrochemical maker LyondellBasell out of brankruptcy amid the financial crises for about $2 billion. By 2014, his investments were worth over $10 billion. He also purchased Warner Music Group for $33 billion and invested in tech gaints Spotify and Beats. These investments ballooned his net worth to $15.7 billion. By diversifying his income stream away from his traditional real estate, media and telecommunications business, he was able to ride the recession upwards.
2. Use other Peoples Money: Kemi Egan was a Physical Therapist when the recession hit. Her income began to dry out until she started selling everything she had. As the income dried up, her debts increased. She always had an interest in real estate and felt she could be successful in that industry no matter what position she was starting from. Eventually she was able to raise $1 million to buy $2 million worth of real estate and within 2 years was generating $460,000 from 100 tenants. 3 years later, she is in the middle of two $5 million developments. Where does your passion lie and can to you convince someone to invest in you?

3. Do the same thing but differently: While not known to many, Michael J Cullen was the man who revolutionized American life by creating the modern supermarket. A former executive at Kroger Grocery and Bakery, Cullen left in 1930s during the great depression to start a suburban, larger, self-serve supermarket with space for automobile parking when the higher-ups at Kroger rejected his idea for such a supermarket. Within 2 years, his stores where doing more than $6 million in revenues (more than $75 million in today's money). Rather than copy others, look for what everybody is doing that fills a need and do it differently.

4. Invest or Purchase under-valued assets: In October 2008 during the height of the financial crises, Warren Buffet announced that he was buying $5 billion shares in Goldman Sacs, $3 billion in General Electric among other companies that he was investing it. Like the saying goes, "be fearful when others are greedy, and be greedy when others are fearful." All these companies needed liquidity to get them through the credit crises which warren provided. As a result Warren made billions of dollars at a 10% premium over his initial investment. If you have funds, this is the time to purchase real estate assets.

5. Start a businesses with Low Start-up cost: Recession creates a specific breed of entrepreneurs termed by Professor Ivan Light of University of California as "survivalist entrepreneurs". These entrepreneurs don't innovate but instead enter industries with low education requirements and small start-up costs that consumers still need despite hard times. In Kentucky, USA, a grandfather called Colonel Sanders started serving chicken at his gas station during the great depression. By 1937, he had expanded to a 142 seat restaurant due to popular demand. Coincidently, most survivalist entrepreneurs typically open businesses in the food industry.

Remember, during bad times, wealth is not actually destroyed, rather it is transferred from one group of people to another. During the last economic crises in the United States. Apple grew its revenues from around $25 billion to over $105 billion. Where did all that money come from?

http://www.coliseum.com.ng/Discover/Article/1000352/5-Strategies-for-Generating-Wealth-in-Bad-times?utm_source=MadMimi&utm_medium=email&utm_content=5+Strategies+for+Generating+Wealth+in+Bad+Times&utm_campaign=20160904_m134110936_5+Strategies+for+Generating+Wealth+in+Bad+Times&utm_term=Read+more+___

FTC space for sale