How to Make Lots of Money During a Recession
December 9th, 2008 by Steve Pavlina
Email this article to a friend A recession is possibly the best time to launch a new business or to expand an existing one. It’s also a great time to get ahead in your career. I know this sounds counter-intuitive, so let me ’splain.
First, the media goes nuts during a recession. They turn a little bit of negativity into a mountain of pessimism. This makes a lot of people financially paranoid. People become socially conditioned to expect the worst.
If you buy into this social hysteria, you become a victim too.
But if you tune out such stupidity (not watching TV helps a lot) and maintain a grip on rational thought, you’ll see some amazing opportunities popping up everywhere you look.
During such times people get scared and start cutting back on expenses. They cut some of the fluff from their lives. They stop buying so much stuff they don’t need.
This causes some businesses to do poorly, especially businesses that don’t provide stuff we really need. We can live without new credit cards and gas-guzzling SUVs for a while. Those non-essentials can be put off.
We also become more sensitive to receiving genuine value. When we spend money, we want to make sure we’re getting a fair deal.
Consequently, businesses that provide genuine value can actually do better during a recession. More people will flock to those businesses in tough times, while the fluff businesses will become more and more paranoid.
In the USA there are a lot of fluff businesses. Many are based on the moocher mindset, trying to extract money without providing fair value in exchange. A lot of the dead or dying financial companies are like that. The American auto industry has been contracting as well, at least in part because they’ve been creating inferior products that people don’t really need. (Erin and I own a Honda, despite the fact that we could have gotten a significant discount on GM cars because two of my family members used to work for GM. We looked at some GM cars and quickly concluded they sucked. Other family members weren’t so lucky.)
A lot of people have been learning that job security doesn’t mean much these days. More than 500,000 Americans learned this lesson last month when they lost their “safe and secure” jobs.
src:-
http://www.stevepavlina.com/blog/2008/12/how-to-make-lots-of-money-during-a-recession/
