When the economy takes a downturn and recession fears rise, it can feel like everything’s out of your control — but not everyone sees it that way.
For many self-made millionaires, recessions aren’t just storms to weather; they’re opportunities to rethink, adapt and grow. While most of us focus on cutting back and bracing for impact, these entrepreneurs lean into uncertainty with a different mindset.
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GOBankingRates spoke with self-made millionaires Brad Jackson, director of operations at After Action Cigars, and Matthew Tran, engineer and founder of Birchbury, to discuss how they’ve learned through experience that tough times can spark creativity, sharpen decision-making and even open unexpected doors.
Here they share their rules for surviving — and even thriving — when times get tough.
Make Your Money Work Smarter
When the economy is tight and rough, Jackson said he really finds ways to make his money work smarter. “Instead of just cutting costs and reducing staff, I look for creative ways to improve our efficiency,” he said.
This means getting more out of what he already has — whether that is renegotiating deals, improving processes and even finding cheaper suppliers as an alternative.
“This way, I will still be able to keep things running smoothly without sacrificing our growth,” he explained.
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Focus On Adding Value Versus Cutting Costs
During tough times, businesses often cut costs, but Jackson finds it works better to add value.
“I focus on building strong and lasting relationships with my customers,” he said.
For example, he stays in touch with customers, keeps them updated and makes sure they feel appreciated. “These connections help create loyal customers who will surely stick around for a long term. When other businesses are shrinking, I focus on making the experience better which strengthens our brand more for the future,” Jackson explained.
Maintain a Robust Emergency Fund
“Even before recessions, I always have an emergency fund,” Tran said. “My target is always to save at least six months of living expenses kept in a high-yield savings account.”
He also has a cushion for business expenses as well to give him security and peace of mind.
This also means he avoids spending on unnecessary luxuries and cuts back on things such as dining out and subscriptions that he doesn’t really need.
Invest With Strategic Choices
According to Tran, investing during uncertain times can still be done with strategic choices.
“I make sure to keep a diversified portfolio,” he said.
For this, he focuses on recession-proof sectors such as consumer staples and healthcare. “Real estate can also be a steady asset. But I am cautious and only invest in properties with potential for long term appreciation,” Tran explained.
Wealth Is Not Just Saving and Investing
Self-made millionaires explain that it also involves learning new things or knowing business trends.
“By constantly learning, I am updated on potential opportunities such as side hustles or extra income sources,” Tran explained. “If the economy suffers, I will have those alternative sources of income to help sustain me.”
Downsizing is not always needed, but he said he tries to avoid spending more just because he has extra funds. “Even when business is strong, I always live below my means so I am ready when challenging times come,” he said.
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This article originally appeared on GOBankingRates.com: 2 Self-Made Millionaires Share Their Rules for Surviving a Recession
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