5 Steps To Create Wealth In A Recession

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Whether it’s a widespread recession or getting laid off, challenging financial times can make it difficult to see the light at the end of the tunnel. But, there are always opportunities. It will require consistent effort, but it is possible to create financial success in any season.

Nick and I went through a recession as a couple when the ski resort we worked for laid off over 20% of its workforce. It was tough, but we got through it. You can too!

Nick and I went through a recession as a couple when the ski resort we worked for laid off over 20% of its workforce. It was tough, but we got through it. You can too!

Here are the five steps to create wealth in a recession

1. Elevate your money mindset

Your mindset is like your nutrition. Just like you need to feed your body with wholesome foods, you need to feed your mind with rich thoughts. This will help you shift from a scarcity mindset to an abundant mindset. Every moment is an opportunity to consciously make decisions from an abundant, not a scarcity, mindset.

A scarcity mindset holds the fundamental belief that there is not enough to go around. Whether it’s money or toilet paper - a scarcity mindset will drive you to hoard resources because you fear that it will run out. But, hoarding causes the supply to run dry. It’s a self-fulfilling prophecy bringing your worst fear into reality.

An abundant mindset operates from a place of hope, possibility, creativity, collaboration, and love. This mindset holds the fundamental belief that, like love, there is always more where that came from.

To retrain your mind, feed it rich nourishing thoughts with daily money mantras. I share a new money mantra almost daily on my Instagram. Also, do things you enjoy. Indulge in play and pleasure. Watch movies that show people living in luxury and read lavish magazines. When you do have a scarcity thought (and they will show up) simply replace it with two abundant thoughts. Remind yourself of the times you created wealth when it seemed like all was lost.

Remember, there is nothing wrong with feeling anxious or fearful. The key is to not act from this state of fear.

2. Release shame

Many people hold shame around debt and past money choices. When it comes to debt, the wealthiest people in the world leverage debt. They use it as a tool to become richer. Having debt does not make you bad with money. Unless it was debt from unconscious spending, you are doing the same thing the wealthy do by leveraging it to become richer.

On that note, now is the time to be honest with yourself about your past money choices. If you’re in a financial hole due to unconscious spending, own up to it. Then forgive yourself and take conscious steps to shift your situation. Allow this to be an opportunity to practice self-forgiveness. Eliminate the “shoulds” like I should’ve saved more, I “should’ve” paid off more debt and start taking action to create a brighter future.

Further reading: Five steps for paying down crushing credit card debt

3. Focus on boosting your savings

Get in the habit now of putting away, even it’s 1%, of your earnings into a savings account. It's going to be hard at first, like fitness, but the sooner you do it the easier it becomes. If you do it during this season of recession, imagine when the steady paycheck comes in. It will be much easier.

You may be thinking, shouldn’t I focus on paying down debt first? No, focus on your savings. You released shame about debt in step #2, so you can now focus on savings. Your savings is like putting your oxygen mask on first on a plane. You have to protect your financial health, and savings is your oxygen.

With your debt, take this time to negotiate your interest rates and monthly payments. Beyond that, focus on your earnings, savings, and spending habits.

4. Spending

How you spend your money is a reflection of the impact you wish to have in the world. When done consciously, spending can be a reflection of your values.

If you have the means, spend money to support the businesses you love. This is not the time to hoard your money in your savings and investing accounts. If everyone is not spending, no one is receiving nor will have the chance to contribute to the economy. Spending keeps the economy flowing and glowing.

If you don't have the financial capacity to support small businesses, don’t feel bad, there are other ways you can help. You can share their offerings on your social media, with friends and in other ways to help them get the word out.

5. Make money

There are so many ways to earn money, even during a recession. You can teach online classes, offer virtual bookkeeping, conduct remote work consulting, bake bread for neighbors (this is what one of our Money & Mimosas readers has started doing!). The baking bread idea came about because one of our readers wanted to do something related to her passions.

Take a deep breath and ask yourself what are your passions. Creating wealth based on what you love to do is the best way to thrive in any financial season. For more guidance on how to make money doing what you love, join the Money-Makers Circle. Click here to learn more.

Further reading: 22 ways to make money from your couch