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Hosting during the Recession - female host in front of black Mercedes GLS


Prepare for Recession 2022 with these tips from a financial expert

Posted 7 month(s) ago

Greg Martel has been in the financial sector for over 20 years. He got his start at the Bank of Nova Scotia in 2001 before obtaining his broker’s license in 2007. Just two years after that, he  founded his own brokerage franchise. Martel has also been the recipient of the Best Newcomer Award at the CMP Canadian Mortgage Awards and the award of excellence as an outstanding newcomer in the Canadian mortgage brokering industry. 

You can learn more about Greg Martel and his career here.


First off, it’s not the end of the world. Or even the United States. 

While most countries’ economies are typically in an expansion phase, recessions are also a normal part of the business cycle. Since 1854, there have been 34 recessions in the U.S. So what exactly goes on in a recession?

What is a recession?

A recession is a period of economic decline lasting more than a few months. It can occur as a result of controlled events like the housing crash of 2008, or unpredictable phenomena like the 2020 COVID-19 pandemic. 

Recessions are characterized by failing businesses, high unemployment, inflation, and slowed domestic production. 

Of course, every recession is a little different. The Great Depression of the 1930s was a massive economic upheaval. It lasted many years and led to a 33% decline in the quantity of goods and services produced in the United StatesMeanwhile, the recession in 2020 was exceptional because of how short it was—a mere two months. 

So, what can we expect from the next recession? 

What would a recession in 2022 look like?

It hasn’t happened yet, but economists believe a recession may come either in 2022 or in 2023.

If it happens, we’ll most likely see elevated prices, particularly in energy and fuel. On the bright side, they would still be well below 2008’s levels when gas cost an average of $5.37 per gallon. Currently the national average for gas prices is $3.99.

Easy monetary policy and $5 trillion worth of stimulus checks also drove up inflation. As of July 2022, inflation is at an average of 8.5%. This is high compared to the last 10 years where the average never broke 2.3%.

We’ll also most likely see rising interest rates. The Federal Reserve sets the Federal Funds rate, the overnight rate at which banks lend to each other. At their most recent meeting, they raised it by 0.75%. Indirectly, this may affect interest rates for consumers. 

According to Redfin, because of those rate hikes, mortgage costs have shot up by a median increase of 49%. 

Worst case scenario, economic experts say if there’s a pullback on consumer demand and spending, the U.S. could be headed for stagflation. Stagflation is a period of persistent slowed growth, high inflation, and high unemployment.  

What can you do to prepare for a recession?

Luckily, if you haven’t made moves yet to prepare for the recession, you’re not alone. According to The Balance, 44% of U.S. adults said they aren’t financially prepared for a recession.

But, as they say, it’s better to be safe than sorry. Some smart individuals may even find ways to thrive amidst the next economic downturn. Here are our best tips for coming out of the possible recession in 2022 better than how you came in it. 

Invest in the stock market

When everyone is selling, that’s when you should buy. This rule of thumb especially applies during recessions.

The S&P 500 is down over 18 percent this year, while the tech-heavy Nasdaq is down almost 30 percent, one of the most dramatic drawdowns in history.

Meaning, there is an opportunity for you to “buy the dips” and secure some good stocks while they’re cheap. 

If you’re not sure what to invest in, you can’t go wrong with MAAMA or Meta, Amazon, Apple, Microsoft, Alphabet. Formerly known as FAANG (Facebook, Apple, Amazon, Netflix, and Google)

These tech stocks have historically outperformed the S&P 500 index. Even Meta, the lowest performing of the bunch, outperformed the S&P 500 by about 70% as of June 2022, making them good long-term investments. 

Take advantage of your equity

If you’re a homeowner, you likely have some equity you can tap into. Unlike in 2008, when many found themselves in underwater mortgages, Americans are in a much better position real-estate wise.

Here’s why: Firstly, many Americans capitalized on low rates during the pandemic to refinance their homes. Secondly, housing prices shot up at record rates over the last year, increasing the amount of equity homeowners can now access. 

With that in mind, consider applying for a cash-out refinance, or a Home Equity Loan if you just want the option to take out cash should anything come up. This will put less pressure on you to be liquid if any unexpected expenses pop up. 

Make some passive income

As the recession continues, job security will become a bigger issue. Even if you manage to hold down a job, your wages likely won’t be able to keep pace with inflation. When accounting for inflation, real incomes actually declined 0.3 percent in June.

In times like these, it always helps to have alternate forms of income coming in. If you have a car, a house, or even a spare room, you can list it on a sharing platform like AirBnb or carSHAiR.

When you host with carSHAiR, you’ll also have the added bonus of keeping up to 95% of the profit. Our new host program also allows you to leave your vehicle(s) with us. We do all the work like the upkeep, booking, cleaning, and delivery while you just rake in the revenue. You can then use this extra money to pay bills, cover your car expenses, or carry you through any difficult times. 

Start preparing for recession 2022 by putting these tips into action. And if you’re interested in hosting with carSHAiR, apply to join our community today.