Unfortunately, another recession is increasing, largely due to uncertainty raised by the new administration. When uncertainty rises, we collectively tend to spend less money and save more. As a result, company profit growth may slow, stock prices may fall, and layoffs may increase.
Lose money in your investment and then your job is a double blow that no one wants. It’s more like depression. Many people have encountered this pain during the 2008 global financial crisis, the first half of 2020, when Covid hit and now in 2025 with layoffs from Volkswagen government workers. What’s more difficult is that without positive income, you’re also missing out on cheap prices to invest.
No one wants a recession except short sellers or extremely wealthy people. But if another downturn is coming, let’s focus on some surprising positives. Perhaps this view will help mitigate the blow of losing a lot of money soon.
Great things in recession
Recession is a part of life. Lifespan is long enough that you will experience several. The key is to accept who they are, seize the opportunities they offer, and stay optimistic so that better times are moving forward.
1) You may no longer need to work hard
Imagine an economy with growth management booming. Friends are getting a raise and promotion and you will have to hone harder. Meanwhile, as the window of opportunity never lasts forever, the surge in stock markets encourages you to save and actively invest.
In recessions, things happen frequently. With the increase in layoffs and the decline in portfolios, hard work may no longer produce better results. This kind of promotion and promotion will not happen at all. Since your company’s share price won’t magically recover through your personal efforts, you can reasonably decide to focus on your return on your effort (ROE).
You may decide to do enough to avoid being fired rather than over-expand yourself. After all, the harder you work, the lower your ROE will be. This psychological transformation can free up time to rest, hobbies and families and can certainly improve your mental health and happiness.
2) Young people and children have greater opportunities to build wealth
The bull market is difficult for young people and children as rising prices make investments unreachable. Instead, the recession gives them the opportunity to invest at a lower price.
Most young people have very little savings, which means they are not losing much in the economic downturn. If they can make money and invest during the recession, they may build meaningful wealth in the next few years.
During a downturn, parents can give gifts and invest more for their children, and they can also match any Roth IRA donations their children make. Although they may not be millionaires before leaving home, this latest correction increases the chances of a child accumulating a lot of wealth as adults.
3) The middle class has greater relative wealth
When the stock market falls, the wealthiest people in the world tend to lose their biggest losses. For example, when Tesla stock corrected 50%, Elon Musk’s net worth fell by $130 billion. As a result, 99.9% of us became relatively wealthy compared to Elon.
As wealth gaps change, social unrest usually decreases. When inequality contracts, society feels more stable and harmonious.
4) Reduce congestion and traffic
As the economy flourishes, popular destinations can feel unbearable. I was in Palisades in Tahoe on a weekend in March and the crowds were overwhelmed. Daily elevator tickets range from $215 to $270, accommodation ranges from $400 to $2,000 per night, and my wife was knocked down on the hills almost a few times. The recession will reduce the number of tourists, making ski trips safer and more enjoyable because of those who can still go.
As the workload of staff decreases, traffic jams during peak hours begin to ease from 7:00 to 9:30 am and from 3:30 to 7:00 pm. Reduced congestion can lead to road anger, lower stress levels and fewer accidents that ultimately save lives and money.
Theater Performance Hamilton It may no longer be charged $350 for seats at the Ancestral, and NBA games may be more affordable than $250 per ticket. Most importantly, you can eventually book one of your favorite restaurants or even just walk in. Now, this will be a welcome change!
The recession helps reduce the massive consumption patterns of non-personal financial enthusiasts who do not actively save for their future. In turn, it’s better for the daily lives of the rest of us.
5) Better access to parenting and schooling
With more unemployed people, more parenting providers are available. Meanwhile, daycare attractions have become easier to access as more parents stay at home to save on parenting costs.
If you are offering private schools for your kids, competition may ease as families switch to public or homeschools to cut costs. This can provide much-needed relief to parents. More time raising children at home may mean better relationships with them in the future.
I remember the frustration of rejection in six of the seven kindergartens in San Francisco in 2000-2001. Wealth has created a huge demand for attractions, and even the so-called lottery admissions are beneficial to the rich and good connections. An economic recession can restore balance to these systems.
6) More deals about luxury goods and other things you don’t need
The first thing to go public during the recession is vacation homes, luxury cars, watches, jewelry, boats and other non-essential toys. If you’ve been paying attention to these items, a flood of supply is likely to lower prices.
This is your chance to guide your inner vulture investor – the seller of the low ball seller overpaid debt. By seizing these opportunities, you can accumulate valuable assets and potentially enrich your family as the economy recovers.
Smart investors who bought struggling assets during the 2008 global financial crisis and the decline in March 2020 have played a huge destiny. Meanwhile, those who can’t stick with it may never catch up with those who have done it.
7) Stronger family bonds and community support
Tough times often make people more intimate. Families may spend more time at home, bonding on game nights, cooking meals together or enjoying simple activities. The community may also become closer and the neighbors support each other.
Shared experiences with financial difficulties in driving can strengthen relationships and remind us that wealth is not the only way to achieve it. Nothing is more important than friends and family. The recession may just remind us of this truth.
8) More encouragement to spend money and enjoy your wealth
If a recession is about to wipe out a portion of your wealth, you can also spend some and enjoy life! Watching your portfolio take a hit is one of the best ways to really appreciate your money. It’s like a near-death experience that makes you want to live a fulfilling life.
The more money you lose, the more you value what you still have—your family, friends, health, wisdom, and of course, your safer assets like cash, bonds and real estate can continually generate returns.
Now, let me bring you the biggest benefit of a recession.
The best benefit of a recession: The courage to change your life makes your life better
Recession has a way to push people to reassess their priorities. Over the years, many people have used the downturn as a catalyst to stop wasting time on things they don’t like. when The profit motivation disappears. All that remains is whether you have actually found your job.
If you’re stuck in something nasty, a recession may be the push you need to make changes. Instead of looking back regretfully, take this opportunity to spin towards something more meaningful.
In the biggest recession of our lives, after losing 35% – 40% of our net worth in just six months, I decided to have enough financial work. I first hosted a compelling offer from my competitors, which forced my existing company to get close to matching it, thus drawing my escape. Then I came up with the idea of negotiating severance payments so I could keep my money in my pocket.
If there was never a Great Recession in 2008-2009, I’m sure today I’m still stuck in a company’s meat-hand grinder. My health will definitely be worse, I will be more grumpy, and because of all work travel, I won’t spend a lot of time with my kids as I do now. Thankfully, the recession has freed me from the desire for constant more money and status!
When you are in so much pain, you will find a way to change it. And, if you don’t, then maybe you’re not suffering enough.
Silver lining embracing the recession
No one wants to decline. But if it happens once, focusing on the potential positives of it can help you stay rooted and hopeful. By adjusting your mindset and seizing new opportunities, you may stand out, be stronger, richer, and more fulfilling.
As someone with a net worth of about 25% of stocks, I’m sure to feel the latest market correction. However, since my goal is a 30%-35% stock allocation, I am still continuing to add USD costs to the stock. Meanwhile, I feel comforted in owning a paid home and have 50% of my net worth in real estate.
Ironically, all this uncertainty and chaos are exactly what real estate investors have always hoped for. The decline in interest rates is the sight of our painful eyes after the ruthless rate rise since 2022.
For these reasons, I can’t say I’d be totally upset if we go into a recession again – there’s always a silver lining.
Reader, what are the other ways that the recession has positively impacted your life? Let’s hear what you think, because we lost job losses for some of us as the stock price fell during this period.
Diversify your assets
My favorite asset class to own during a recession is real estate. Investors tend to stabilize the stability of real assets that provide utility and generate income. Unlike stocks, real estate valuations don’t just disappear overnight.
If you want to invest in high-quality residential and industrial commercial real estate, consider Fundraising – My favorite private real estate investment platform. I have invested in over $300,000 in fundraising and they are also long-time sponsors of Financial Samurai.
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