Lessons from Economic Recession
- 07.12.09
- Finance Concepts, Personal Finance, goals, savings
We are all experiencing economic recession. There are low demands of products as consumers cut spending. Companies cut costs thereby closing some of their plant operations and laying off thousand of is workforce.
What lessons have you learned so far in this economic recession? What are the things will you do just in case another deep recession comes into our economy in the near future? It is better to be prepared and arm yourself with a weapon to survive an economic crisis.
Save for the future. You will never know when you will get laid off in your job and you have thousands of financial obligations that are aligned in your list (i.e. credit card debts, house mortgage, car mortgage, etc.) With or without an economic recession, you should always save for your future. Always make it a habit to save and budget so that when an economic recession hits like a typhoon, you can survive it even if you lose your job. I always believe in the saying “ubus-ubos biyaya, bukas ay nakatunganga”.
Take advantage of stocks. For the young investors in their 20s, they should take advantage of stock investments. In an economic recession, as profits of companies decline, stock values tend to be lower because investors dump riskier investments as they flee into a safer haven bonds. This is a time to buy sound companies’ stocks especially when they hit rock bottom values. You will be surprised as how much you could earn from increased share value when the economy starts to kick off aside from the dividends that these stocks might have.
Young investors have a lot of time before they retire and they can definitely ride the volatility of the stock market. Always remember though that you should only invest what you can afford to lose.
Take advantage of low value properties. For the cash-rich investors, now is the time to buy houses most especially in the US. By law of supply and demand, since there are low demands for houses in times of an economic recession, house values tend to decline. Shop for bargain homes and develop it.
Participate in bargain bazaars. If you are a business minded person and have great things that you can sell in a bazaar, I guess this is one of the perfect timing as consumers tend to go to bargain stores and bazaars in search of cheap items during times of economic recession. Alternatively, you can set your garage into a bargain store with your neighbors as potential customers.
Do you have other lessons learned from this economic recession? Share them below.
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Nhoel
recession is indeed a serious matter that we all must deal with. i had seen the documentary of this recession and that on the 1930s, the best part is that we had learned from that last recession to overcome this current.
our company had been affected by this recession but after about two months were back. and now the orders are flooding and we’re very very busy.
-Nhoel of http://www.keywordspeak.com
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mabel
This article strengthens the truth that there is always opportunity in crisis.
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According to me we should take recession as good event, I know that all will disagree with me but I have some explanation on this, we all know that saving money, spending limited money are very much essential points for our financial security but still we don’t follow it. Recession is the way by which we all can learn how to save and spend without any tutor for that.
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the Economic Recession has been pretty hard on us. some of my friends lost their job because of the massive job cuts. i just hope that our economy becomes better in the following years.
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