Hey expats. Here’s what happened in SBV… kidding!

If you’re like me and tired of hearing repetitive SBV/tech layoff recaps, read this edition for tactical tips on building financial resiliency. My goal is for you to be like Neo dodging financial bullets. 🕺 

Today in 10 minutes or less, you’ll learn:

• 🧠 Secret to a recession-proof mindset

• 🛣️ Create 6-month runway (and earn 4.7% yield)

• 💸 6 income-generating side hustles

• 💼 FANG offer tactics (plus: free cold DM script)

P.S. If you have been getting value, share Money Abroad with just one friend today: 🙏 

☠️ Build financial resiliency… or else

Resiliency is like this tree relentlessly pushing through the pavement cracks to soak up the sunlight.

You can cut the tree down, but it won’t remove the roots burrowed deep in the soil. The tree will keep coming back strong.

In this deep dive, we’re going to show you how to be financially resilient like this tough-as-nails tree:

🧠 1. Learn the secret to a recession-proof mindset

No one knows with certainty if there will be a recession and how big it is. Anyone telling you otherwise is lying.

Recent market data is giving us more mixed signals than your hot tinder date: 🔥

• Recession is coming: SBV collapsed, inflation rates are still increasing, 2,700 tech layoffs happening per day, housing market starting to slow

• Coast is clear: copper prices rebounded (signaling increased manufacturing demand), labor employment is still high, consumers are still spending

Either way, as individuals, we don’t control the outcome.

Focus on what you do control: your finances. By preparing for both scenarios, you come out net positive:

• If we hit a rough patch, you’re prepared to outlast it.

• If we don’t, then breath a sigh of relief. You have even more optionality.

🛣️ 2. Save for 6-month personal runway (and earn 4.7% yield)

I work in startups, where founders report their cash runway in monthly investor reports. The CEO uses this cash to create options and make bets. 🚀

You are the CEO of your personal finances. Build up your personal runway to give yourself options. Play defense now (save), so you can play offense later (take risks).

🇨🇳 You never know when you’ll need the cash. I recently chatted with my friend, founder of a fast-growing education company. Last year, when China banned for-profit education, his company value plummeted to 0 overnight and he went from multimillionaire to being to debt. Create options for yourself.

Steps:

1. Save 6+ months of cash for rainy day fund. Buffer enough for potential job loss, hospital stay, business collapse, or even zombie apocalypse (half-kidding). You’ll thank yourself later.

2. Consider using part of your cash to earn low-risk interest. ie Treasury bills and high-yield savings accounts.

   1. I put 60% of my emergency funds into a mix of 3-month US T-bills (~4.7%) and 6-month SG T-bills (~4%). Rest is in liquid high-yield savings (~3.4%).