Reality Sinks In
I believe reality is finally sinking in for many of us that we are looking at several more difficult years of the “New Economy.” With the re-election of Mr. Obama, we will have at least at four more years of bad federal fiscal policy for any real economic growth.
We will continue to have rising gas prices and, in turn, a rising cost of goods and services. High unemployment will continue to drag on. The national debt will soar higher and higher. And, of course, we will have additional higher taxes in every area imaginable – income, estate, fuel, utilities, and healthcare. This will impact all of us, not just the super rich.
I don’t want to be Mr. Doom and Gloom here, but if you’re just hoping things are going to turn around financially and we’re going to be back in the “good old days” (financially speaking) of Reagan, Clinton, and the Bushes, then keep on dreaming.
If you want financial change, then you’re going to need to become the change you desire. You’re going to need to be way more proactive about money than you probably want to be. You’re going to need to work harder and smarter than ever to provide for your family. The sad reality is that the folks in Washington appear to want a bunch of mediocre wage earners. They have no real desire for you to become high achievers. Excellence and success are definitely not words in their vocabulary. In fact, they are punishing achievers more than helping them.
17 Strategies For A Bad Economy
As I wrestle with the reality of the New Economy in regard to my own family finances, here are some thoughts on becoming successful in spite of the insanity:
- Take personal responsibility. Resist the urge to just give up and jump on the dole. The unfortunate goal of a bunch of politicians today is for you to take advantage of every available free money handout from the government. They want you hooked for life, and then they want you to vote for them because of their benevolence. I say, dare to be different and take personal responsibility. Avoid the handouts. In the end, you’ll be better off for it. It’s about character building, not easy street.
- Get out of debt ASAP. Definitely do not emulate the federal government in regard to debt! Start working your debt snowball, immediately. Unloading the burden of debt will free up your resources. You will be able to focus all your available resources on what truly matters as we continue in the new economy.
- Build up your emergency fund. In the new economy, this will be more critical than ever. Once you get of debt, be sure to build up an emergency fund of at least 3-6 months worth of living expense money. Having this stash available will help your family through any unexpected job loss or downturns.
- Grow in your generosity. Even in difficult economic times, we need to maintain lifestyles of giving. This will enable an attitude of gratitude. I’ve seen it in so many people. A generous life unleashes greatness and, of course, God’s hand of blessing.
- Brand yourself. No, I’m not talking about making marks on your body with a hot piece of metal. In the job market of the new economy, you have to stand out. You must be unique. So, what will make your name rise to the top of a stack of resumes? What qualities or characteristics do you possess that people want and need in their workplace? What niche do you cover better than anyone else? Once you figure out what makes you unique from everyone else, then you have to sell that uniqueness in anything that has your name attached to it.
- Create a platform. Related to #5, once you have figured out your personal brand, then you need to release your brand out to the world. You accomplish that through some type of platform. This could be a personally branded website (such as larrywjones.com), a blog, a book, podcast, or series of YouTube videos. The best book about creating a platform is Michael Hyatt‘s Platform: Get Noticed In A Noisy World.
- Create multiple streams of income. In the new economy, you must think multiple streams of income, so that if one dries up in these challenging economic times, you will have other sources of cashflow to get you through. Long gone are the days of one solitary income sustaining an entire family. Consider ways you can create residual income streams on the side in addition to the income from your day job. Check out this awesome resource from Pat Flynn: smartpassiveincome.com.
- Find a mentor. The fastest way to get where you want to go is to find someone else that has already been there. If you want to be debt free, then find a debt free family and pick their brain about how they accomplished that. If you want to brand yourself through a personal platform, then find someone who has done this and emulate what they are doing.
- Network. In today’s world, we have various ways to maintain and even expand our network. We can go out to lunch with friends and acquaintances. We can attend networking events, such as our local chamber of commerce. We can network through the various social media channels: LinkedIn, Facebook, Twitter, and so on. The overall goal, of course, is to maintain a group of social connections that will help you long-term with business and job opportunities.
- Become a life-longer learner. In today’s ever-expanding Information Age, it’s critical to always be reading and learning. Paper books, ebooks, white papers, blogs, and more. Be well-rounded and think “generalist.” Know a little something about everything. This can make you a more valuable employee over the long haul. The best leaders are actually generalists surrounded by specialists.
- Short and long-term financial planning. More than ever, you need some type of monthly cashflow plan during these turbulent times. You also need to be thinking out ahead for the next several years. Got goals? Do your current plans line up with those goals?
- Hire financial experts with the heart of a teacher. Related to #11, an excellent financial expert can help you navigate both short-term and long-term money issues. Also, there is much confusion with all the new laws coming out of Washington, especially with the massive changes in healthcare taking place, today. It’s better to get help from people who understand these new laws than to figure it all out on your own!
- Embrace simplicity. The simple life is way underrated. Get rid of all the extra junk in your life. Have a massive garage sale. Give away all the leftovers to your favorite charity. Keep your life and your stuff as simplistic, clean, and organized as possible.
- Bargain hunting. Paying full price for stuff anymore is not very bright. Learn how to find great deals at great prices. Learn how to negotiate. Be a cheap skate, but always consider the quality of the product before purchasing.
- Discover ways to save in the areas of fuel costs. Due to current political policies, these costs are only going to continue to rise. Does that mean go out and buy a hybrid vehicle? Probably not, because the cost of a brand new hybrid vehicle still outweighs the cost of fuel long-term. In regard to gasoline, consider less driving. Make as few driving trips as you possibly can. In regard to home utility expenses, do an energy audit and see where you can make some reasonable home improvements in order to save on those bills long-term.
- Pursue a healthier lifestyle. With the Affordable Care Act going into full force over the next few years, here’s another area that will continue to grow financially out of control. If you aren’t healthy, you will end up paying higher costs, fees, and taxes in order to get healthy. Pay the price on the front end with a better diet, exercise, and clean living. If you don’t do it on the front end, you’ll end up paying through the nose on the back-end.
- Pray. Although I have listed this last, it really should be at the top of this list! As a believer in Christ, I believe in God’s protection and provision. I know that He owns all things. I know that He is crazy in love with me. He can and will provide for me during difficult times.
Question: So, has it sunk into your brain that our current economic climate is going to persist for a while? What long-term strategies are you employing in order to survive and thrive going forward? Do you have additional suggestions to this list of 17 strategies?