How to make money during a recession

How to make money during a recession. Be wow. Build what others want (BWOW). Remember that money comes from trade. People will pay you money in exchange of goods (products and services). To make money, trade profitably.  

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Profit

Whether in a recession or an expansion, money is made exactly the same way: trading for profit. 

Here is a simple profit "inequality" expression to keep in mind: 

                                           V > P > C

Where V is value; P is price; and C is cost. 

The value that people derive from purchasing the goods (products and services) that you trade must be higher than the price they pay. The price purchasers pay must be higher than the applicable unit cost.If the perceived value does not exceed the price, people will not buy your goods. If the sales price does not exceed the unit cost, you will lose money on the sale. For everything to fall neatly in place, remember "VPC" for V > P > C 

"Be wow"  

Build what others want (BWOW). You can also buy what others want (buywow) to resell it for profit. If you don't have capital to buy, you can build your own brand. See all the YouTubers and influencers around, building their profitable communities and brands out of nowhere and without any seed capital.

Recession

Many economists and financial experts are predicting a recession. Since the experts are predicting it, a significant or prolonged recession probably will not materialize. It is not necessarily that experts get things wrong all the time. It is that the government will probably keep increasing spending (and debt), and the central bank (Federal Reserve) will keep printing money out of nowhere (computer digits) to avoid a significant recession. 

A recession is not necessarily a bad thing. A recession can reduce prices and make investments more affordable. The stock market is a good example. Institutional investors are anticipating a recession that would make it harder for companies to make profits. Therefore, they are selling the stocks. When there are more people selling than buying, prices go down. As stock prices go down, investing for the long run becomes more affordable. The same applies to housing. After current owners foreclose, new owners can find bargains. Capitalism creates winners and losers. Communism creates losers and losers. 

Affordability

The rhetoric around us is that living in our country is unaffordable. Yet we see many people wasting money left and right at Walmart, Amazon, and everywhere else. You see people overpaying for cars and joy riding burning fuel. Most Americans also complain about unaffordable food prices yet 80% of Americans are overweight. This anecdotal evidence suggest that most people can cut spending and become smarter consumers to not only survive a recession, but to thrive during one.  

A recession can make many things more affordable. The most important habit to create wealth is to invest. Invest in your skills, invest in your education, invest in buying stocks. A recession may help you become a smarter consumer and a better human being. It can also help you make money. Think about what people want and build it for them. Perhaps people are in need of knowing how to become better shoppers. If that is your skill, share it. Perhaps people are looking into believing that a life without problems is possible. Write fairy tales for them. 

Find ways to help and serve others. Build what others want (BWOW), and they will throw money at you you. Guaranteed.

Food for thought. What do you think?