The Secret To Surviving A Recession

As the UK, Ireland and many other countries confirm they are in recession the strategy should now switch to surviving and thriving during the recession.

In this blog we look at some strategies to adopt that will help you navigate this difficult time and learn how to thrive no matter what the economy is doing.

Table of Contents

 

Multiple Income Streams

Multiple Income Streams is one of the best strategies and often the one most neglected.

In today’s modern world rhetoric is all about niche. Make the niche narrower. If you want to stand out online you need a smaller niche.

The problem with this advice is when there are difficult economic times, being in a small niche, with just one source of income spells disaster.

Recessions are a normal part of our lives. In the UK, there is on average a recession every 10 years. During the cycle there is a growth period, a stagnant period before the decline period and then the stabilizing period before growth kicks in again.

With the average recession lasting 18 -24 months, depending on how severe the recession is, it means each period of the recession cycle is roughly 2 – 3 years.

Why do so many businesses fail?

They don’t understand cycles and throw all their eggs into one basket without creating other sources of income within their business model.

When a recession hits, they are out of business.

For example, if the business model is residential property investing and the investor is buying through a buy-to-let mortgage. As property prices start declining they can find themselves outside the parameters of their mortgage contract.

Two things can happen

  1. They need to pay lump sums off their mortgage to come back within Loan-to-Value rates or
  2. They face having properties repossessed.

Generally, at this stage incomes are tight and rents tend to go down meaning when additional money is most needed it is not available.

If the niche included property options and versatility in the types of property in the portfolio together with other property income streams then the business model could pivot to remain viable.

Multiple Income Streams is one of the best strategies for thriving in a recession.

 

What Are Multiple Income Streams?

8 multiple income streams offer stability and risk management during a recession. They provide a foundation for exponential growth. Most people boast of having 10, 15 or more income streams but when you filter the income it falls into just one or two categories.

The 8 income streams are

  1. Earned Income – this is where you work for someone or you are an employee of your own company.
  2. Profit Income – is generated outside of a company structure
  3. Dividend Income – comes from shares either publicly listed or shares in your own company
  4. Residual Income – recurring income that comes in every month also known as MRR (Monthly Recurring Revenue)
  5. Interest Income – comes from investments that pay interest
  6. Rental Income – often refers to property but can be anything you can rent to someone else
  7. Capital Gains Income – this is buying low and selling high
  8. Royalty Income – from something you have created and copyrighted.

With these income streams, there is always something that is going up while something else is going down.

By having all 8 income streams in your armory there is no question about surviving a recession as you’ll be thriving throughout the recession.

Frequently Asked Questions

Can you have Multiple Income Streams?

Yes, a Bankrate survey in 2023 found a large number of Americans had one or more side hustle businesses. Out of the people surveyed 33% were reliant on the side hustles to generate extra income for everyday needs.

How Do You Create Multiple Income Streams?

Creating Multiple Income Streams starts with building a side hustle business. Invest the profits into the 8 income streams mentioned above. It takes time to build a business and be able to create the other income streams.

What is Passive Income?

Passive Income is where something has been created and continues to generate an income after the work has finished. For example, I have online training courses. They take time to create and market. Yet, they continue to generate income for many years after their creation requiring no further work from me. This is passive income.

Do Millionaires Have Multiple Income Streams?

Yes. If you take a look at Elon Musk, currently the richest man in the world, he has several income sources through business, shares and cryptocurrency.

How Can I Create Multiple Income Streams?

Karen Newton International helps clients build online businesses and invest profits into property, shares and commodities through joint ventures. The ensures clients have a Multiple Income Stream.

We offer two memberships

  1. Members Only – focuses on building online businesses with access to two Joint Venture Opportunities
  2. KNI Mastermind – focuses on building Wealth, Income and Lifestyle. It provides everything in Members Only plus more Joint Venture Opportunities.

Other Resources

 Karen Newton International has other resources available through our network of websites. Below are some of the sites that may be of interest to learning more about creating Multiple Income Streams

WebsiteWebsite Link
Karen Newton International Training Courseshttps://courses.karennewtoninternational.com
The Online Entrepreneur https://theonlineentrepreneur.co.uk
Guide to Property Optionshttps://guidetopropertyoptions.co.uk
Share Investinghttps://shareinvestments.co.uk
Gold and Silver Investinghttps://goldsilverinvestor.co.uk
The Formula for Wealthhttps://theformulaforwealth.co.uk
The Self-Publishing Networkhttps://selfpublishingnetwork.co.uk
Creating Multiple Income Streams through Business, Property, Shares and Commodities

Proven Strategy for A Recession

Multiple Income Streams is a proven strategy for navigating a recession by reducing exposure and risk to one type of income.

It takes time to start building an online business. When the business is profitable income can be invested into income-producing assets generating multiple income streams.

Even though times may be tough the best time to start is now.

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