Thriving In a Recession: PT 2

How to Survive a Recession

There is one rule for surviving a recession. Eliminate as much debt as possible. The average American pays $5000 a year on credit card and personal loan debt. This is your wealth. Reduce debt and you have $5000 to invest in your business every year.

Financial Investment

Freeing $5000 is only the first step. Step two is to invest that money. Wealth is built upon an investment. Whether the investment is in pet dogs, stocks, a home based business, or marketing your skills.

Time Investment

The average blue collar worker watches television up to 40 hours a week. The average ‘wealth builder’ invests this time more wisely. They use the time to build their business, study stocks, and building their skills.

Knowledge is Power

The key to power is knowledge. JFK’s grandfather survived the stock crash by listening to shoeshine boys sharing the information overheard from their clients. The boys didn’t realize that they were playing a part in establishing one of America’s greatest dynasties.

Constant upgrading and education is one of the ‘7 Habits of Successful People.’

How to Thrive in a Recession
This is the easiest technique to implement. There are a few rules that have worked in the past few recessions. The first is ‘cater to the lowest common denominator.’ This means that you look for a product everyone needs, but isn’t readily available, or can be sold for less money.

The second is to sell skills. The companies that survive will retain the most skilled labor force. This common business fundamental will be challenged in the current recession as the new ‘outsourcing’ trend lets more professionals work from home, saving them time and the company money.

Create Independence

No matter what your skill level, education, debt load, or income level, those with more than one stream of income will not only survive this recession, but they will thrive and continue to build wealth while others struggle.

This recession will balance the economy. The banks will lose billions. They will still profit, but like the stock market, the only thing lost will be artificially inflated profits. Many people who borrowed more than 30% of their income will struggle. A handful people who have multiple streams of income, and employee the basic rules of wealth building, will float through as if there is no recession. A lucky few will become millionaires overnight.