How can ordinary people survive during an economic downturn? These seven tips will help you get through the tough times.

When the economy begins to decline, winners are often not the fastest movers, but those who manage resources best. This article offers six survival strategies, from building emergency funds to seizing opportunities during crises, helping you face an uncertain future with composure.
(Background: Powell’s press conference signals a “cautious hawkish” stance: the economy is stable, inflation is slightly high, and there is no rush to cut interest rates)
(Additional context: The year when tokenomics was deemed useless—what is the point of holding onto tokens tightly?)

Table of Contents

• Step 1: Build Emergency Funds (Liquidity)
• Step 2: Reduce Debt
• Step 3: Diversify Income Sources
• Step 4: Allocate Inflation-Resistant Assets
• Step 5: Keep Cash and Be Patient
• Step 6: Explore Entrepreneurship / Side Hustles
• Final Reminder: Don’t Let Emotions Drive You

When the economy begins to decline, winners are often not the fastest movers, but those who manage resources best. As global dynamics continue to fluctuate, true survival skills lie in preparation and planning.

Think of Leonardo DiCaprio in the movie “The Revenant”:

He was abandoned by companions, severely injured, and almost had nothing.

In the end, he survived not because he was the strongest, but because he knew how to adapt.

He used the limited resources around him, conserved his strength, and knew when to act and when to lie low.

Every decision was aimed at one goal: surviving until tomorrow.

The same principle applies during economic recessions.

When the economy begins to decline, winners are often not the fastest movers, but those who manage resources best.

They keep cash on hand, reduce unnecessary risks.

They understand: during certain periods, the goal is not growth, but survival.

This article is a “Survival Guide” written for everyone preparing for tough times.

It is recommended to start with the “Part One” of this article, which helps you understand the possible global situation we may face.

Step 1: Build Emergency Funds (Liquidity)

This is the most important step: establish or increase your emergency fund.

If you don’t have enough savings to cover 6–12 months of basic living expenses, now should be your top financial priority.

During economic instability, risks of unemployment, income reduction, or unexpected expenses increase.

A sufficient cash reserve provides three things: liquidity, stability, and most importantly, time.

It allows you to handle setbacks calmly, without resorting to high-interest loans or selling long-term assets at a loss during market lows.

How to do it specifically?

Calculate Monthly Necessary Expenses

Include: rent/mortgage, utilities, food, insurance, transportation, minimum debt payments.

Set Savings Goals

Multiply your necessary monthly expenses by 6–12 to determine how much you need to save.

Cut Non-Essential Spending

Review your expenses, reduce takeout, entertainment, impulse purchases, and transfer the savings into your emergency account.

Set Up Automatic Savings

Automatically transfer a portion of your salary into your savings account as soon as you get paid. This is called “paying yourself first,” and it effectively prevents overspending.

Keep Funds Easily Accessible

Emergency funds should be kept in accounts that can be accessed at any time, not locked away.

Step 2: Reduce Debt

During economic downturns, debt (especially high-interest debt) can trap you instantly.

Credit card and online loan interest rates are high, and if your income decreases, they can snowball quickly.

Action list:

• List all debts: record each balance, interest rate, minimum payment.
• Prioritize paying off high-interest debt: pay the highest interest first, even if it means paying a bit more each month.
• Consider debt restructuring: see if refinancing or consolidation can lower interest rates and simplify payments.
• Halt new borrowing: unless absolutely necessary, avoid taking on new debt.

Less debt means more flexibility during storms.

Step 3: Diversify Income Sources

Don’t put all your eggs in one basket—that’s old advice but still true.

If your livelihood depends on a single job, unemployment becomes a fatal blow.

Three ways to increase income:

Start a Side Hustle

For example, freelancing, consulting, tutoring, opening an online store, driving for ride-sharing services… even a few hours a week can add a buffer.

Build Passive Income

Invest in dividend stocks, rent out property, create digital products (courses, e-books), establishing “income while sleeping.”

Upgrade Skills

Learn skills that make you more valuable, or switch to more stable, in-demand industries.

The core idea: don’t rely solely on one paycheck to live.

Step 4: Allocate Inflation-Resistant Assets

When the economy is bad, buy assets that preserve or appreciate in value.

Watch for signals:

Inverted yield curves often precede recessions.

Consider these asset types:

Defensive Stocks

Essential consumption, utilities, healthcare—demand remains relatively stable.

High-Quality Dividend Stocks

Choose companies with stable dividends, low debt, and consistent profits.

Gold and Other Precious Metals

Often used during downturns to hedge against inflation and currency risks (avoid buying at peak prices).

High-Quality Government Bonds

Backed by government credit, relatively safe.

Avoid:

• Highly leveraged companies
• Speculative tech stocks and cryptocurrencies
• High-leverage industries (like commercial real estate)

Step 5: Keep Cash and Be Patient

Recessions bring panic selling and extreme pessimism, but they also often create opportunities.

Having cash gives you options.

Hold enough cash so that when market sentiment collapses and quality assets are sold off cheaply, you can act.

Remember: cash is a risk-free leverage.

Don’t rush to “buy the dip”; wait until the market truly bottoms out and emotions have settled.

Patience itself is a form of capital.

Step 6: Explore Entrepreneurship / Side Hustles

Crises also hide opportunities—especially now.

Many industries (especially digital ones) have lowered barriers to entry.

A computer can reach a global market.

Some directions to try:

• Freelance writing/design/programming
• Social media management
• Online teaching
• Website building
• Video editing
• Opening an online store
• Local services (cleaning, pet care, car detailing, etc.)

Key points:

Validate the market first, control costs, differentiate yourself. Establish a stable footing before expanding.

Final Reminder: Don’t Let Emotions Drive You

Most people fail to accumulate wealth because they lose interest.

When markets rise, everyone thinks they are geniuses, but few truly learn, analyze, and build systems.

When markets become boring or decline, people get distracted, give up, and stop thinking.

And that’s the most dangerous moment.

• True advantage is often built when no one is paying attention.
• It comes from consistent research, repeated practice, and patience during dull periods.

If you only pay attention when the market is hot, you’re not investing—you’re seeking excitement.

When the storm hits again, you’ll be more vulnerable.

Remember:

A bear market is a filter.

Only those who endure it can truly survive long-term.

This guide is not a prediction but a contingency plan.

Hope it helps you face an uncertain future with more confidence.