Recession-Proof: How to Survive and Thrive in an Economic Downturn

by Jason Schenker

“How can I possibly afford to own a dream home or travel around the world when the economy is doing poorly?” Let’s turn that question on its head. How could you possibly afford to buy a house or go traveling when the economy is doing well? In up years, everyone wants to buy a house and the real estate sector goes nuts. It becomes a seller’s market. Just ask anyone who tried to buy a house in San Francisco in the middle of the dot-com bubble in the late ’90s. It sounds like the best time to buy, but it’s actually the worst. Any financial advisor will tell you to buy low and sell high. When it comes to buying a house, that means: buy during a recession. If you can swing it financially, this is the time to do it. As for traveling, remember that tourism, leisure, and hospitality are industries that are exceptionally vulnerable to a recession. When people have less money, they’re going to cut back on these luxuries. That means that in down years, hotel rooms and plane tickets get much cheaper. If you have some money tucked away for that round-the-world adventure you’ve always dreamed of, a recession is the perfect time to get maximum bang for your buck. When the economy stinks, what are you giving up in order to do that? Not much.