EP91 Recession Proofing Your Money When the Economy is in Chaose

Economic uncertainty is creating financial anxiety for the Latino community, but we can take practical steps to reduce stress and regain control during these challenging times. The key is acknowledging our feelings while developing new strategies to navigate rising costs, stock market volatility, and potential recession.

• Face economic reality without letting it overwhelm you
• Adjust your financial plans and consider scaling back major purchases
• Learn financial literacy as a form of resistance and empowerment
• Consider real estate investing for monthly cash flow and financial stability
• Diversify investments between stocks, bonds, and tangible assets
• Connect with community rather than isolating during stressful times

More on the blog

Share this episode if you found it helpful, and remember: ánimo, let's keep our heads up and survive this craziness together.

Chapters

• 0:00 Economic Uncertainty and Personal Stress
• 8:04 Acknowledging Feelings and Pivoting Strategy
• 11:39 Building Emergency Funds and Financial Literacy
• 14:41 Real Estate as Financial Freedom Strategy
• 19:46 Stock Market Navigation and Diversification
• 22:20 Community Power and Supporting Latino Businesses
• 25:44 Closing Thoughts and Call to Action

Transcript

Speaker 0: 0:48

with everything that's been going on with the economy, are we going into recession? Yes, no, maybe so, regardless. Our grocery bill is going up, the stock market goes up and down and down and down and down and with all these tariffs and everything, like everything is going crazy and it's getting overwhelming. So in this episode I want to talk about things that we can do, that we do have some control, and just give you some tips and things that I am doing to get me through this whole mess. But first, hola, welcome to another episode of the money chisme podcast. I am violeta, your host, and I gave you the chisme on personal finance, real estate, investing and entrepreneurship and anything to level up your money without losing our cultura.

Speaker 0: 1:47

So, yeah, like this first quarter of this year, these, you know, first months, have been so stressful. I have been going through it, not going to lie, but like because I have so many changes going on this year and you know a lot of uh decisions to like, get out of the military. My husband got out of the military, um, last year, end of last year, and we're moving to texas, we're doing all these things and so a lot of big financial changes and all like I feel like I kind of picked a worse time to do all this stuff because, uh, with everything that has been going on, from all these crazy random layoffs um, to the stock market going crazy to, you know, like the tariffs, so what's going to happen with uh, how much, you know, our grocery bill is going to go up and all these other things and I'm going from a stable paycheck and now to like my husband and I are we're trying to like figure out and come up with a plan and we have something like he's gonna just go active again, um, get some orders, and you know I might do the same in the future when he comes back. But like it's just so crazy because last year I was so confident with my decisions of like I am so financially stable, I have everything set up to make this big move, and you can't plan for lots of these things of it going like crazy. Like who would have thought, okay, this administration was just gonna like turn everything upside down. So it has been stressful. I've been it. I'm sure y'all have been feeling it.

Speaker 0: 3:54

So let's talk about what can we do to reduce our stress, and the first thing we have to do is we gotta like face. It Is that a lot of times we tend to kind of do the avoidance thing and I've done that, like for a few weeks at a time where, like, I just cannot look at the things anymore, the headlines and everything that, the decisions that are being made. But we just gotta be, you know, in like aware of everything that's going on. But we have to, you know, not let it break us Like, yes, the layoffs is pretty crazy, especially like the federal ones that I know people that is starting to affect and you know, being on that side and working with a lot of federal workers, it's kind of, you know, it hurts me because I know a lot of civilians that are federal workers and you know a lot of them are retired, you know military, so it's sad I have a few at my job that are just kind of like waiting for the ball to drop, I guess, of them getting the email that they're getting fired for no reason. And we need them because they are the ones with the experience and are teaching, like myself and other people, because military we rotate like every few years. So imagine like how um, something would fall apart if there wasn't those federal workers that keep the um, the knowledge and experience going, you know.

Speaker 0: 5:44

But you know we just gotta like acknowledge it like it's something that may happen, the market with, especially with our 401ks and stuff, and us doing everything that we're, as we're finally figuring this shit out, right, like, okay, we gotta get into the stock market so we can retire and have, you know, that stability, y luego ahí viene, this stock market thing, and it's like it's exhausting, it's definitely mentally and emotionally draining to see that happen. Um, you know, yes, it can naturally happen, but to for it to happen because of the decisions that the administration is doing, it's, yeah, it's, it's a little shitty. So I could see how we can end up being defeated, feel defeated, like you know, apenas we're finally getting our shit together and now this happens, it's like it feels like, um, every time that we're finally trying and figuring our stuff out, something happens to kind of like pushes back down, so we cannot let it get into our heads. Yes, stay informed, you know, keep track of what's going on so that way you can make it, you know, educated financial decisions and feel the feelings Like I allow myself, you know, to feel the rage and the depression or whatever feelings I may be having at that time, but I have to, you know, set a limit for myself, because I am the type of person that I can let it go on for a while.

Speaker 0: 7:32

So I'll be like all right, for today I will let myself feel the feelings and then tomorrow, okay, move on, move forward, figure something out. So we are not powerless. It is just time to pivot once again. We can do it. We've done it, our parents have done it. We just got to have like that mentality and resilience is like okay, otra vez, something happened.

Speaker 0: 7:58

Now we gotta, like, change our strategy, which, you know, brings me to the next um tip is that then we have to think about our strategy. Look at what you are doing right now and think of what can we do differently now? What do we have to do differently? So for me, for example, like the plan was that I wasn't going to work till the end of the year, um, and my husband would just be working at his job or whatever, but he works at his, you know, product based company. It's still a startup. So there's a lot of you know who knows what's going to happen with that, because people are not going to probably prioritize that product, because they're going to be focused on being able to afford groceries and stuff like that.

Speaker 0: 9:03

So we had to make the decision that, ok, let's pick something that is going to probably be more stable, which is the military. He's reservist so he could go and select orders, so that's what we're having. Um, towards the fall time frame, which is when will be my last military paycheck, so then there won't be that much gap, and so we have that stability for myself. I'll be going to school more than likely, and right now we're reviewing our finances. We also adjusted once again the house that we are we're planning to get, so now we're gonna go smaller, which, realistically, is probably better anyways, because the important thing is the lifestyle being able to gain financial freedom faster, since I'm not going to have such a high mortgage. What's important is that I'm going to be living with my family and I'm going to be able to homestead, I'm going to be able to frolic with the chickens and all that and grow my own food.

Speaker 0: 10:17

So when you're going through your strategy of what you had planned originally, you're going to get these feelings of like frustrations and feeling like you're going backwards and, you know, like failure and all that and I had to go through those feelings as well. But then I had to think about it and really think okay, what is actually the important thing is like, not the big house, not like the, the bougie car, whatever. To me, the importance is to have my daughter grow, you know, up with her grandparents, with my sister, and be out in the land and growing my own food, being able to gain financial freedom and being able to travel and all these things. So that's the important thing. So now, yeah, the dream looks a little bit different, but the lifestyle that I dreamed of is still there. So when you're going through your strategy and adjusting, um, yeah, you're going to get a little bit irritated that now you have to kind of pivot or pull back.

Speaker 0: 11:34

So what can you add to your strategy if you aren't doing it? Like I mentioned earlier, is figuring out where you can adjust your budget, your money spending plan, whatever you want to call it. I hate to be like frugal and everything like that, but with with everything that's going on is like, if you don't have an emergency fund, which is the next thing if you don't have an emergency fund, definitely that should be a priority, along with paying down your debt with paying down your debt, um. So, in order to do that, if you can cut down what you can or find ways to make an income maybe like a a little side hustle, whatever might may be um uber or cutting grass, since the summer's coming around springtime, you know, I was just saying earlier to my husband when we walked the dogs, like, oh, look at all these yards that their grass needs to be cut because you know it's been raining. So maybe you know something like that that you can um get some extra cash so you could start building that extra um emergency fund. And, of course, if you haven't been doing it, definitely uh be practicing being building up on your financial literacy, because knowing how your money works is a game changer, is a form of resistance of knowing how your money works and how you can make your money work for you. So, uh, educating yourself. There's lots of books and everything, and I have a few blogs on books that you can read, resources, things like that. I'll link it down below. Um, but, yeah, make sure that you are educating yourself. But what if you already have your emergency fund and you've already adjusted and started cutting back costs and you still have like extra money and maybe you don't want to put more money into the stock market for some reason, even though, um, it's still a good idea to keep going. Um, one of the greatest ways is through real estate, of course.

Speaker 0: 14:04

I am a big real estate advocate. I am a real estate investor. I actually put more of my money into real estate rather than the stock market. I still put money into it Okay than the stock market. I still put money into it okay because I have. It's a good idea to have both and to have a to diversify your money where you're investing it. But I really love real estate and my goal is to gain financial freedom through real estate. Investing, which is one of the things that is helping, is going to be a cushion right now.

Speaker 0: 14:39

So, with just three rental properties, I make almost 3000 a month on average. Right, some months are better and some months are, you know, not as good, because maybe I have more maintenance or whatever that month. But for quarter one, I averaged, uh, about 2,900, a little bit more than that, almost 3000 per month, and so that's extra money that I have right there to to help me get through this uh, bullshit that we're going through, you know. So I am going to continue to build that because my goal is to uh be fully financially free. So it's a good thing that I currently have three to uh help me get through um, the everything that's been going on the high prices and everything like that. But I'm also lucky right now as of right now, because I still have my military paycheck and stuff like that and my husband's still doing good with his job that I don't need those funds right now.

Speaker 0: 15:50

So I am hoping to squeeze another rental property this year, so that way I have four multifamily properties and with that that's even a bigger cushion and after a while it just it just kind of, you know, compounds in your real estate investments. If you don't have to use them right now, then it just keeps, you know, saving up the money and reinvesting and compounding. But real estate is one great way to move your money because it's an actual asset. You could get monthly cash flow, versus with stocks. Yeah, you could get dividends, but you know it takes a while. But with real estate investing, especially rental properties, then you could start gaining monthly income with each rental property and it all starts with that first rental property.

Speaker 0: 16:45

So if that is something that you are curious about. I do have a free guide what to know before buying your first rental property. It just gives you a good idea of what things you need to consider before getting into investing in rental properties. And then, if you decide like, hey, I want to do this, but I need to learn the skills, I need some tools to what how do I go get a rental property Then my rental property bootcamp is there for you. It goes from A to Z, teaches you how to calculate cashflow, how to find your first rental property, how to find the market and also how to create your action plan. So you know exactly what to do. So that way you can go out there and get your first rental property so you can start building financial freedom. So all of that is linked down below.

Speaker 0: 17:42

Now, if you still want to invest in the stock market, I, you know, am not an expert at the stock market on what stocks you need to buy or whatever, whatever, but definitely find someone that is and figure out what kind of stocks you might be interested that are a little bit safer at the moment because of how the stock market is going crazy and with every time that he says tariffs. Every time he says tariffs, like the stock market just crashes even more. But, yeah, bonds is one I know, you know again, not financial advice, but like this is something that my husband and I did. We moved, we're changing up a little bit more into bonds now. So we're not selling our current stuff, right, because I also don't. That secures that loss, right? Right, so we don't lose, and technically, until you actually sell that stock.

Speaker 0: 18:42

So I want to keep the stocks that I have and then still invest a little bit in the stock market. But now I'm diversifying more into stocks and bonds, and bonds is what I meant to say, bonds is what I meant to say and a little bit just more diversified. So I shifted a little bit on where the money that I'm investing in now is going to go. So figure out what is doable for you, what's comfortable for you. Or, you know, be like some of these people if you um, your risk tolerance is, um, better and, like some of these people, are just putting money because you know everything's on sale. You hear that all the time and, yeah, you know it's a good opportunity to go. You know, join the stock market whenever it's down, but remember it might go a little bit down, so don't panic. Just you know, be aware of that, but do what is beneficial to you.

Speaker 0: 19:40

The other thing is community. Our community is our superpower. Make sure that you don't isolate. I know I let me tell myself this because I have a habit of isolating when I get too overwhelmed and everything feels like it's spiraling out of control. Overwhelmed and and everything is feels like it's spiraling out of control. And I definitely felt that whenever, um, I saw the, the market and the economy and everything all going crazy and the tariffs, and I was like spiraling, because I was like, oh my god, like I am getting out of this stable job and now I'm gonna be out here, like, like, what are we going to do? So I definitely isolated for a little bit and I realized like no, let me talk to other people and you know, find my community, you know other Latinas that I know and talking to them. One of the good things is having this podcast is that I get to, you know, talk to a lot of other financial experts, especially Latinas, and you know, I get to have that sidebar with them after the podcast episode.

Speaker 0: 20:57

Very, very beneficial of us just just ranting about inventing of what we're feeling, and that just helps a lot. And also, you know, learning from each other. That's another benefit of the community as, like I'm learning from those that are very knowledgeable with the stock market, and you know other people that are experts at something else with business or whatever and so we just help each other out on things to support each other and help us through these hard economic times, and knowing that we're not out here alone, right, that we have somebody to, you know, lean on their shoulder and they can lean on our shoulder. And we support each other in not just that aspect, but there's a lot of behind the scenes right now where we are working with each other to figure out how we can help each other. What can we do? Maybe collaborate, maybe provide some assistance or whatever it may be on helping each other out in our community.

Speaker 0: 22:11

And, speaking of community, it is important and that we are out here advocating for our community, that we are still showing up for our community and being the voice, because a lot of them don't have a voice. I remember when I was undocumented, like I felt like I didn't have a voice, because I was scared to fight, to say anything that could get me deported, and now that I'm a citizen, I definitely want to be the voice to help them and speak up for them, because they are being targeted. Our community, our Latino community, is being targeted, as well as other minority groups are being targeted. The decisions that this administration is doing is definitely, you know, geared towards scaring us and silencing us. So we have to make sure that we are out here still, you know, being loud and let's find ways on how we could support our small businesses, for example.

Speaker 0: 23:20

One of the things that I'm going to do is go back to meal prepping, but what I'm going to do is there's a few, you know, small mexican restaurants right here down the block and I'm gonna go, like buy things at the beginning of the week or whatever. Like there's caldo and other things and rice and beans and stuff, and I'll just use that because I already have that expense anyways. Uh, to meal prep. But let me go ahead and help, uh, keep them the doors open for them, right, because it's it's going to get crazy. So if there's things that you can do similar to that, like bring those dollars to the community, to our community, to help our community survive this chaos and remember that you know what, like we have been here for such a long time, our you know, our families have survived a lot. They've gone through recessions también, and you know, especially, I always think of my parents. Like man, imagine coming to a new country, not speaking the language, not knowing how any of the finances work or whatever, and it's like. And they were able to do it, you know, through their grit and resilience and everything. So, like that, you know, you know it's in my blood. I have that in me to be able to uh, survive this craziness that is going on. And no, me, van a callar, you're not gonna win. I'm still going to be here.

Speaker 0: 24:54

Well, that's it for this episode, mi gente. Uh, don't forget the resources that I mentioned will be linked down below and also check out the blog. I always put extra stuff on there that might not fit in the show notes or the description, so check that out if you want more resources. But other than that, don't forget to share this episode. I always forget to mention that. Uh, let me know también if there's anything that you want me to talk about. There should be like a little message where it says, like send text message, or you could always DM me or email me on anything. Feedback is always welcome, but other than that, let's just keep it moving, ánimo. Let's keep our heads up and keep pushing through this so we can survive this craziness. Hasta la próxima bye.