Tuesday, 25 November 2008

How to survive (even thrive) in tough economic times

Some years ago I spotted a sign in a shop window. It read "we are not participating in the recession". The owner had decided that it was "business as usual".

High oil prices and escalating food prices have caused everyone some measure of financial discomfort. An economic slow-down of the world's major economies has driven many countries towards recession. Almost everyone has to cut back in some way to survive.

But while the majority will be tightening their belts, some will not be suffering. Just a few days ago I read of a couple running tours of bank-repossessed homes.

A recession means that many investments have become cheap. If you have some cash or are able to raise finance, then now is the ideal time to invest.

The banks now have a massive stock of re-possessed homes that must be sold. These homes are going for a song! If you are in a position to buy, then buy now. These houses will prove to be an excellent investment.

Equities have ended their long bull run and many of the world's stock market indices reveal falling prices of blue-chip shares. The markets are still volatile, but most of the damage has been done. Now is a good time to buy! Many shares have become under-valued though the underlying companies are sound.

It is possible to improve the way you live by changing your spending habits. Cut out the fast foods and meals out. Replace these with quality meals at home. Discover your artistic abilities in the kitchen. Cut back on driving, use a bicycle instead and get fit.

Make a plan to eliminate debt. Cut back on living costs for a few months and use all available resources to eliminate debt. The short term sacrifice will pay huge dividends when you are able to live a debt-free life-style.

Taking on a second job or starting a business is always a viable option. Perhaps you can find a way to transform your hobby into cash.

Business opportunities to provide services needed to cope with hard times abound. Repair services are in greater demand as people repair rather than replace. Second-hand goods - furniture, books, even clothes - become more attractive as disposable incomes diminish. Demand for child-care services will grow as more mothers are forced to work to supplement the household income.

Remember, you don't have to participate in the recession!

1 comment:

Michael Wong 38 said...

Hi there, a while ago we had talked about exchanging blogroll links.

I was supposed to get back to you after I linked to your blog so you could link back.

I linked to your blog already. When you have some time, please link back ok?

cheers, michael wong at: