One can survive recessions and use them to get ahead.
So how does one survive such dangerous times?
First, recognize that recessions are a natural part in the economic scheme of things. Our message yesterday looked at how fasting can help one to live longer and better.
Recessions are simply economic fasts.
Second, understand that tight economies are the best for making money. Recessions reduce competition and make it easier to access good labor. Both businesses and employees are more realistic in tough times.
Tough times force us to do what we should have been doing. Human nature being what it is gets fat when the times turn easy. Recessions trim us up!
Here are seven tips on how to fight recessions. They are good to heed anytime. When economies boom, we might ignore them and succeed. If we ignore them now during a recession, it is at our peril.
#1: Look for every way you can to trim expenses.
#2: Do not be inflexible or proud. A seminar delegate told me about a friend who had risen from a zero net worth to having an Internet portfolio worth $300 million. “Then,” the delegate said, “he lost it all when the bubble burst. He went right back to where he started.”
That was not quite right. That investor did not go back to where he started. He most likely acquired bad habits when he thought he was worth $300 million! Unless he shed those habits when he went broke, it will make it harder for him to succeed again! In good times, we may think we deserve a certain way of life or that some things (luxuries for instance) are our inalienable rights. Really our only economic right is to spend a little less (maybe 90%) than we earn.
#3: Always save. No matter how tough the times always try to save at least 10% of your income. Those who do this almost never run into economic trouble.
#4: Look harder for the silver lining. There are more in bad times than good. An old British saying is “Where there is muck there is brass”. Business is solving problems and difficult times create problems. Look for ways that you (and/or your investments) can help others squeeze through tight times.
Take for example the beach condos I wrote about at
This is a time when US real estate has totally crashed. The newspapers are screaming that the economy is headed for recession. Yet the developer had a very nice project on this beach.
The developer saw things in a different way. Instead of thinking “can’t sell second home beach condos now,” he had a different thought.
His thinking was, “People still want second condos. They just cannot afford US beach condos now. I’ll offer them beach condos they can afford.”
Within four days of my writing the message above that developer received over $1.8 million dollars in orders! He sold out nearly half of his entire project.
#5: Be positive. One of the greatest risks in recession is a can’t win attitude. If the economy falls drastically (say 30%), you still only have to be in the top 70% to get by. The entire history of modern humanity has been one of long term growth chopped by short term recessions. Current conditions are nothing new.
#6: Remain true to your economic plan. Use three phase investing as described in so many of the messages here http://www.garyascott.com/inspired/36/
Do not panic and stick by your investments (assuming they were made intelligently to begin). This will increase your odds of success and help you with step seven.
#7: Maintain perspective. Rethink Priorities. Use a slowdown to rethink your grueling schedule. Think about pursuing work that might pay less but is more meaningful. We live in the richest, most incredible era that mankind has ever known. Our poorest have more than the richest of just centuries ago. Yet this can be hard to remember when caught in the day-to-day rush of the material rat race.
Inspired investing is doing what we love and figuring out how to make money from it. We increase our odds of success and enjoy what we are doing more. When times are tough and the economy slows, this perspective can give us time to sit back for at least a few moments and ask, “What do I really want to do with the rest of my life?”
Until next message, good global business and investing!
The March real estate tours and course are now full.
Our next courses and tours are:
April 10 – 14 Super Thinking + Spanish
April 16-17 Ecuador Imbabura Real Estate Tour
See this hotel for sale on Imbabura real estate tour.
Se wonderful art in the markets on our Import Export Course.
May 13-17 Ecuador Import Export tour
May 23-25 International Investing & Business Made EZ North Carolina
June 7-8 Coastal Real Estate tour
June 11-15, Super Thinking + Spanish
June 16-17 Imbabura Real Estate Tour
June 19- 21 Ecuador Shaman Tour