Not too long ago, the burning
question on most people's minds based on economic
trends was will a recession hit us. Now I
think it is quite clear to most that we are in one.
It's now a matter of how long will this thing last,
and how can we best cushion ourselves from it, as
well as can benefits be gained from it all.
Many have experienced something they
never thought they would. We have seen a
credit crisis spread rapidly, and in a matter of
days, affect major global economies, drying up
credit and causing global economies to slow down
significantly. There has been widespread job
loss, major financial institutions have gone into
deep trouble - many requiring some sort of bail-out,
stock prices plunging to all time lows - and it just
continues.
But even in the midst of this
seemingly never-ending economic chaos, where no one
is quite sure how long this global
recession
will
last, there ways that you can benefit from this
downturn in the economy.
One error to avoid is that of being
so pessimistic towards it all that you fail to see
possible benefits and opportunities that may come
your way. For example, as an employee still
employed, you can seek to find creative way to help
your employer through it all. Remember that from
your employer's standpoint, their primary objective
is to maximize profits - even in these difficult
economic times. That means lowering costs.
Your ability to find creative ways to do this will
definitely will definitely be a plus for you in the
workplace, and will also be valuable learning
experiences.
From an employer's point of view, and
depending on their profitability, now may be a good
time to get a couple very talented jobseekers to
join your workforce, since many will become
available now and the cost of labour will most
likely be lower now.
If you are an investor or you've been
thinking about it, and you have cash put aside for
long term investment, now is a fantastic time to
capitalize on plunging stock prices brought about by
the global recession. Since the general
principle of any kind of investment is to buy low
and sell high; stock prices are very low, some may
go even lower. So if you do have the long tern
capital set aside for investment, this is you time.
Another important gain you can look
out for during this global recession has to do with
the principle of supply and demand. Because of
the squeeze on credit, the purchasing power of many
have been significantly decreased. This has
resulted in a marked decrease in sales of many items
including cars, electronic gadgets and more.
So if you have the cash and you are on the market
for a new car, remember that the market is very much
in your favour, and you can wheel and deal with auto
dealers. They are desperate for the sale so it
is very possible that you can get a huge chunk off
the buying price or have all sorts of incentives to
purchase thrown at you.
Finally, be prudent with your
spending. No one knows how long this recession will last or how severe it will be. To survive this,
it is wise to know very clearly what your wants are
as opposed to your needs. You should set aside
your wants and the 'nice-to-have' and focus only on
what is needed. For example, I have to ask
myself, "Do I really need those new clothes and the
the new pair of shoe?" "Am I just buying it because
it's on special?" We all need to be more
disciplined with our spending to get through this.
