How to survive a recession

"We are not participating in the recession" read the sign in the shop window. The owner had decided that in spite of the recession, it was "business as usual".

Difficult economic times provide a measure of new opportunities. 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.

The sub-prime crises landed the world in a major recession followed by a slow and tentative recovery. Almost everyone had to cut back in some way to survive.

But while the majority were tightening their belts, some were not suffering.  Some have capitalised on others’ misfortunes. Investing in cheap homes was one way of making money.

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 in the longer term.

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

If you smoke, now is an excellent time to give up. Smokers usually underestimate the cost of smoking, but the savings produced by quitting could provide much needed resources to spend elsewhere.   

Debt can be a drain on your finances, even during good times. When things get tough, debt could be the last straw.

Make a plan to eliminate debt. Cut back on living costs for a few months and use all available resources to eliminate debt. Getting rid of debt requires a major short-term sacrifice. Cut your expenses to the bone plough every spare penny into reducing 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. This can take time, but once your second and third incomes become more established you will have some extra income to fall back on. A new business could just be the vehicle to ride out the difficult times and propel you into an era of wealth and prosperity once the economy turns.

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

Advantages of the recession

The seventies TV series 'The Waltons' shamelessly romanticised the Great Depression. The family as depicted by the narrator John-Boy was poor but happy. It was the family, their warmth and family unity that mattered. Who wouldn't be nostalgic for these wonderful times? But the schmaltzy portrayal of hard times contained an element of truth - there are really aome advantages of a recession.

A recession provides a dose of reality and perhaps a return to basic values.

The generation of the early twenty-first century is spoilt. Its members are accustomed to getting what they want when they want. Unlimited credit has made it all possible. Parents of young children have forgotten how to say NO.

The ever deepening global recession has changed all that. Cash-strapped parents are being forced to turn down demands for the latest Play Station, Ipod or quad bike. But instead of feeling guilty, these parents can feel good. Their children will manage very well without the latest technological toys and their possesions will acquire value.

Perhaps this will herald a return to traditional outdoor children's games. The transformation of children's play into sedentary activities has been a major cause of low-muscle tone and related perceptual problems. Children thrive when there are limits. For the first time in many years parents are once again learning how to say no. Saying no builds a sense of value.

Endless credit made it possible to get almost anything we wanted. But the novelty of each new purchase soon wore off, replaced by the craving for the next, and the next ....

During the recession times are tough. Each buying decision must be weighed up with care. Our things are beginning to acquire value.

The rampant materialism that has gripped our culture has driven many to taking on a second and even a third job. These were necessary to finance all of the 'necessities' of the age. It was all done for the family. The recession has put an end to the third job, the second job and perhaps the day job. At last there is time to spend with the family.

The recession helps us to discover that not everything worthwhile requires cash! A picnic on the banks of the river with a cool breeze caressing your skin is about as good as it gets. What can be better than sharing a bottle of ice cold Sauvignon Blanc on the beach at sunset? Sometimes the best things in life are free.

Take-out fast food became one of the curses of the age. Obesity has spread like wildfire as millions became overweight. Many have forgotten the pleasure of good home cooked food. One of the greatest benefits of the recession is that we are forced to eat good, wholesome home cooked meals. There is no going back!

Someone once said that a person is rich when he is content with what he has. Perhaps the single greatest advantage of the recession is the return to real values to value what is important, the people that we love and share our lives.