Live Well in Recession

Downturn and recession has never been so worse after the Great Depression in the 1930s. But, this time it is more complicated than the previous one. During those days economies were not linked up the way it is today. So interdependence was less hence, economies were not affected across countries and continents.

Today, the world is a global village, any ripple in any economy works as an earthquake where epicenter is the worst affected but, ripples of different intensity is definitely felt in far off places. The collapse of the US economy, wiping out of the investment banks and acute fluctuation in dollar rates, global oil price rise and fall has comprehensively hit the lives of billions across the globe. Any revival notwithstanding the bail packages and the emergency interference by the governments in different countries, depression and recession is here to stay for some time, months or years is in the hands of time to decide.

Instead of pondering hard on whether and when the circumstances change for the better, we worked on areas where we can change the immediate challenges we are facing in the midst of the crises. Here are some steps and measures which can work in favor of us.

Stay Informed: The days of being focused in your own job and only being focused on it is perhaps over. Industries like housing, automobile and travel have collapsed. So, if one of us is engaged with one of these then, chanced of being pink slipped is manifold. Along with our job we need to get information and work on opportunities which are proving better and comparatively less volatile place of employment like the new industry of alternate energy resources and network marketing. 

Network Marketing: Friends who have lost jobs or struggling to meet ends, here is a very potential alternative or supplement for them. My association with the industry for more than 8 years has empathically convinced me that the ‘power of one’ can bring wonders to many. This industry is insulated from recession. With part time investment and building up a healthy distributor base one can lend exponential man hours for productivity in this business. Never forget that the income also grows in multiples. Options in the form of on and offline network marketing are available everywhere; it’s your choice.

Freelance Assignment: Companies are rapidly turning to freelancers for the simple reason of shedding costs. There is no attachment with the. They work on contracts and assignment and can be chosen for specific jobs from a wide array of offers. The talents or skills, within us, which we never used or may be, did not get an opportunity to do so should pay us now. The freelancers in the financial markets are getting a lot of work from the new debt consolidators and loan assistance type business online especially in the US. A simple law of economics enumerates the multiplicity in market spending. Thus, companies are searching for freelancers to execute their projects.

Hold on to the Current Job: During this period of uncertainty, it is always wise to be there in the current job and not contemplate even lucrative ones. Putting our head down and concentrating on the serious requirements of the company is the need of the hour. We must be punctual to work. Developing new skills, meeting deadlines, innovating, attending productivity enhancement meeting, sharing ideas, taking extra workload are a few things handy in this challenging period.

 Budget and Wise spend: The most judicious thought on the current situation should be put into reducing debt i.e. reduce mortgages by downsizing, doubling up, renting refinancing and even foreclosing.

Some of the factors which can help you in doing this are:

Cut on expenses: Deciding on priorities and segregating necessity or essentials from luxury or optional play a vital role today. The Caribbean holidays or the latest electronic equipments at home can now merrily be on hold with the priorities shifting to paying off the credit card bills and the borrowing or mortgages there in the market.

Reduction on energy consumption: It is not only a personal gain but a   national gain in the form of optimum and rational use of non renewable exhausting source of energy. Efficient use of cooking fuel, electricity, petrol and diesel would definitely bring relaxation to our spent on non avoidable expenditure. Maximum utilization of mass transportation and surrendering the extra comfort of our own vehicles is a very strong alternative in consideration now. It also helps the cause of the environment fighting another war to survive.

Reminds us of the good old days but, if we have space outside our house, let us grow salad and vegetables now. Instead of eating out and adding to consumption of junk and empty calories, this is the right time to forcible look into the healthier and economic alternative. No time is more important than now to concentrate on monthly groceries and stationeries where we save on cost and can also avail the frequent offers announced by the corner stores and the malls as well.

 Borrow: There are umpteen people in this world who are holding on to materials at houses, work places and business establishments not knowing what to do with them. On the other hand those are the things which are necessarily required by some one else. Get connected through the web or personal interaction with families and friends or the neighborhood.

Rent & Share: If we can manage to do by renting things required in the household we must try to use it. Furthermore, we can also talk to our neighbors on common utility items and share the rent cost.

Barters/Auctions/Schemes: In a booming economy these are words which almost took a backseat. Now with everyone feeling the pinch, they are the sought after processes for survival. Look out and be informed about the place, time and deal offered and grab it on the first place.

Sell Gold: Record high price of gold is being registered throughout the globe. It has exceeded $1000 per ounce in US. ‘People are looking for the best places to get cash for gold jewelry’ says Warren Price of a Seattle North Pawn industry. Jewelry is giving 3 times more now than just 5 years ago. Selling gold had never been better before.

Understand Bank Charges: Taking charge of our bank charges, which we might have not taken cognizance of during easier times, has now become very pertinent. PPI (Payment Protection Insurance) helps us save ourselves from complicated charges put on us by the banks. Banks do not want us to know them since it is loss for them and more for you.

Living Wise is Living Twice: This is the time to save money and ward off luxury and indulgence. We need to tackle lay offs, higher rents, cost rise of essential commodities etc. etc. We need to quickly adapt cheap living and there is no room to think that this will reduce our standards and quality of life. It is a matter of prudence and a few things which make us so have been discussed above.

Let us all learn utilizing assets and get the maximum value at the lowest expense. When the going gets tough the tough must get going and being tough now can last us thorough turbulent times like we face today.