DEFINITION of 'Recession Rich'

A slang term used to describe an individual who manages to do well financially, relative to broader population, during a recession. Someone that is recession rich does not necessarily need to be considered wealthy, but rather has managed to maintain a good standard of living during a time when others worry about their financial stability.

BREAKING DOWN 'Recession Rich'

Coined during the financial crisis of 2008-2009, the term was most commonly used in social circles to describe someone from the same socioeconomic class who was enjoying financial success relative to his or her peers. Some examples of a recession rich individual would be someone who buys a luxury vehicle during an economic downturn, or an individual who spends disposable income freely rather than safe guarding his or her money.

RELATED TERMS
  1. Recession Resistant

    An entity which is not greatly affected by a recession. Recession ...
  2. Recession

    A significant decline in activity across the economy, lasting ...
  3. Rose-Colored Recession

    The unexpected optimism market observers sometimes experience ...
  4. Recession Proof

    A term used to describe an asset, company, industry or other ...
  5. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  6. Growth Recession

    An expression coined by economists to describe an economy that ...
Related Articles
  1. Insights

    Recession: What Does It Mean To Investors?

    Understanding the business cycle and your own investment style can help you cope with an economic decline.
  2. Insights

    Industries That Thrive On Recession

    Find out where to turn when looking to invest in a tumultuous market.
  3. Financial Advisor

    Why Advisors Shouldn't Fear a Recession

    Advisors who have clients who may fear a recession should take note that there is always some opportunity in a volatile market.
  4. Insights

    Jobless Recovery: The New Normal Since 1990

    Just because the economy rebounds from a recession does not mean the unemployment rate will follow.
  5. Small Business

    The Impact Of Recession On Businesses

    Find out how this economic cycle affects both small and big business.
  6. Investing

    Tips For Recession-Proofing Your Portfolio

    Find out what to do when the sun sets on a burgeoning market.
  7. Insights

    Industries That Thrive On Recession

    Recessions are not equally hard on everyone. In fact, there are some industries that even flourish amid the adversity.
  8. Financial Advisor

    5 Reasons the Rich Are Better Investors than the Average Joe

    Find out five investment secrets of rich investors that make them better at investing than the average Joe. It's nothing you couldn't do yourself.
  9. Insights

    Recession And Depression: They Aren't So Bad

    Financial downturns are part of the economic cycle and may have important long-term benefits.
  10. Insights

    A Review Of Past Recessions

    Here we look at the biggest economic declines in the U.S. since the Great Depression.
RELATED FAQS
  1. How do financial markets react to recessions?

    Learn more about the relationship between recessions and financial markets by identifying the fundamental characteristics ... Read Answer >>
  2. What's the best investing strategy to have during a recession?

    Figure out how to take advantage of recessions, what assets to buy and which ones to avoid. Recessions are where some great ... Read Answer >>
  3. What is a growth recession?

    A growth recession is an instance in which an economy grows at such a slow pace that it creates net unemployment, meaning ... Read Answer >>
  4. Why does unemployment tend to rise during a recession?

    Learn what a recession is, some attributes of an economy in a recession, and why the unemployment rate tends to have a domino ... Read Answer >>
  5. Is cyclical unemployment always due to recessions?

    Learn about the mechanisms that cause cyclical unemployment and find out about the role recessions and downturns play in ... Read Answer >>
  6. What causes recessions?

    Learn more about possible explanations of recessions in the business cycle, including how individual firms react to changing ... Read Answer >>
Trading Center