The mega-wealthy must be doing something right, so why not turn to them for advice during these tough economic times? We survey a selection of those who have truly made it financially in search of some tips we poorer mortals might incorporate into our financial lives.
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Warren Buffett, the famed American businessman, investor and philanthropist, memorably noted in 2009 — as the Great Recession was ending that “the best thing to do is invest in yourself.” As shared by CNBC, he offered more advice this spring during the annual shareholders meeting of his company, Berkshire Hathaway: “The best thing you can do is to be exceptionally good at something … Whatever abilities you have can’t be taken away from you. They can’t actually be inflated away from you. The best investment by far is anything that develops yourself, and it’s not taxed at all.”
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TV host and author Jim Cramer shared thoughts on recession-smart investing. As reported by CNBC, which airs his “Mad Money” show, Cramer said: “The Dow Jones Industrial Average is filled with relatively cheap stocks because traders assume these 30 old-line companies are the most vulnerable to a recession. But that’s not true: That’s wrong. The Dow components all know how to handle a recession.”
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Entrepreneur, investor and founder of Amazon Jeff Bezos sat down with CNN recently and offered some recession advice, including one that really rings true — hold off on big-ticket items. As he said, “Take some risk off the table. Just a little bit of risk reduction could make the difference.”
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A real-estate mogul, investor, columnist and, perhaps, most famously, a participant on “Shark Tank,” Barbara Corcoran recently shared thoughts on small businesses retaining customers in a recession. Her advice, which applied during the height of the pandemic but continues to ring true: “You don't want to solve the problem and offer the solution when they’ve left you. You want to offer an alternate solution while they’re with you.”
The billionaire entrepreneur Mark Cuban, another famed participant of “Shark Tank,” said that a recession is the optimum time to take advantage of low interest rates: “Refinance your student loan and any other debt you have.”
Personal finance expert Suze Orman says that in a recession, a few things can be done. One must assume he or she will lose their job so create an emergency cushion; it’s key to pay down your credit card debt; and finally, strive to spend less than you earn. As shared by Motley Fool’s The Ascent, Orman says to count on your own help, unlike government aid during the pandemic: “This time, the government isn’t going to save you. You’re going to have to save yourself.”
Dave Ramsey, a personal finance expert, radio host and author, has shared his thoughts on the recession and budgeting. In a detailed post on his website, Ramsey summed up his approach to recession thusly: “So, recession or not, our proven plan is still the same: Live on a budget, pay off debt, save for emergencies, invest for retirement, and live and give like no one else.”
Microsoft founder Bill Gates, a business magnate and philanthropist, shared his thoughts with CNN on the Great Recession, facing global crises, and offering advice that holds true for multiple scenarios, always keeping caution at the forefront: “You can only be optimistic in the long term if you are pessimistic enough to survive in the short term.”
Business magnate, investor — and man in the news most every day thanks to the Twitter deal — Elon Musk has shared his business take on the recession, as reported by Business Insider. It can be applied to a business or an individual: “Make sure you’re not running things too close to the edge from a capital standpoint.” Capital reserves are needed to survive “irrational times.”
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British entrepreneur Richard Branson of Virgin Group fame has shared advice over the years that still holds true, including a piece he wrote for Canadian Business in 2011. As he wrote, “The answer is think big, but build small. Create something you’re proud of, but don’t let it swallow you financially. You don’t need to slather money over a good idea. A good idea will grow by itself.”
