Good and bad
times would continue to switch places from time to time as long as the world
exists. Getting through good times is easy. The major challenge is with the bad
times. Though recession is not a permanent thing, there are countries In the
world like USA that has had well over 30 times of recession. And instead of becoming
the poorest country, it is still standing strong and even growing stronger as a
united states. It only means that recession has a long term advantage.
So how do we manage
recession?
This question
is sure in the heart of many Nigerians right now and indeed most places across the
world going through recession at the moment.
I have put
together some steps you can take to manage recession. Am not trying to proffer
a permanent solution to the problem but steps you can take to survive until the
recession is over. Recession is a time you try to avoid unnecessary expenses
and try to focus on important things. Recession is not a time to sit and ponder
over your problem but rather it’s a time you need to begin to look at ways
around the situation.
UNDERSTAND WHAT RECESSION IS
Have a
deeper understanding of what recession is but concentrate more on the positive
side of recession as an opportunity and not a dead end as most people view it. Recession is never meant to destroy any
country but to bring out the best in them. Individuals who understand this
tends to be better equipped and big financial giants on the long run. So you
see recession is not completely a bad thing. It’s just a part of life that must
happen every now and then.
HOW PREPARED ARE YOU FOR RECESSION
Have an
emergency fund set aside monthly to cater for the unexpected. Times of recession
are times when uncertainties can easily creep in. A separate savings account
with the bank will be helpful in this regard.
TRY TO BE DEBT FREE
The lower
your debt the higher your chances of survival during times of recession so try
as much as you can to settle all your debts. This will make you focus more on
what is important and that is survival. Most companies are forced to retrench
workers during recession so individuals with high income are forced to a lower
standard of life. They can only survive with proper planning and management.
CREATE ADDITIONAL INCOME STREAM
This particular
point is so important to every person and should not only concern those in
recession. Creating multiple sources of income will lead to financial freedom
and chances are that you will become financially free for life. So you can now
see how important it is to add an extra business to that your work or the thing
you are currently doing.
INVEST MORE
Times of
recession are the most important time to diversify your investments especially
in other countries. Reason being that recession leads to a huge fall in stock
price. Buy gold or other precious metals, buy lands, real estates, invest in
bitcoin, Invest in security from other countries and much more. Those who will
smile last are those who have invested during recession.
CARRY EVERY ONE ALONG
All your
family members must be carried along in the fight for survival in these times. Let
them know your strategies and how they can be part of the solution rather than
creating new problems. Resolving finance related conflicts or any conflict for
that matter will greatly help.
SPEND WISER
Stop all
unnecessary spending. Readjust your budget to handle only the basic needs by
sitting down to restructure your expenditures for the year, month, week and
daily.
Cut down on expenses
especially in areas of
· Housing
· Food
· Transportation
· unwise spending
DON’T STOP SAVING
It’s enough
stress to even have sufficient cash to survive on for most people. Yet it is of
great importance to try to save more during recession because every now and
then, an opportunity may show up that will require you to invest and make more money.
So it’s very wise to continue to save even if it’s so little. Contribute to
your retirement account, college funds if you have them. Try to cut down other expenses
to meet this demand if that’s what it takes but whatever you do, don’t stop
saving.
OVERCOME FEAR IN RECESSION
Recession
has power to drop self-esteem if you allow it. It can depress or even make you
give up on life. But it’s not supposed to do all that to you especially now
that you are trying to find solution to the problem. Get excited and create fun
activities. Go for less expensive adventures. Enjoy yourself while cutting down
cost. By all means be positive and look forward
to a better future. Also remember that however you feel will definitely reflect
on your relationship with family, friends, work partners and all that.
HAVE AN ALTERNATIVE PLAN
Be ready for
uncertainties that may occur especially in times when things don’t go as
planned like low patronage, shortage of food, high price, and other challenges
recession may bring. Have a written plan of action in that kind of situation. And
never stop thinking of alternatives especially when others around you are in a
state of panic. You must be focused and face every challenge squarely. Let your
partner get involved with the planning process if possible so that you can work
together to fully tackle challenges.
CUSTOMER FIRST
Focus on
retaining regular customers and seek to gain the confidence of new once. Try to
be honest and improve more ahead of your competitors. Maintain quality at all
times. Never compromise this.
TRAIN YOUR STAFFS
Recession
should also be an opportunity to better equip your staffs on better ways to
improve sales and services. They should be equipped with what it takes to
maintain and create new customers even in hard times.
CONCLUSION
These are
not the only way out of recession but would sure guide you till the recession
is over. And like I said earlier, recession is not forever so be wise and grow
yourself. Read wide to become a giant financially and you will be one long
after the recession is over.
Thank you
for always taking the time to read my post. I love hearing your comments and
suggestions as it helps me do more for you.
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