It seems like every time you turn on the TV these days, the stock market has sunk even lower and the housing market isn’t looking so hot either. People are getting laid off from their jobs almost on a daily basis and with it being an election year, everyone in America is looking for some kind of a change (no matter who wins the election).
Well, go ahead and take a big sigh of relief because I have some good news to share with you. Even though we’re going through a bit of a rough spot doesn’t mean you just have to throw up your hands and deal with it. Learn how to build your own wealth in a bad economy–and realize that it’s about more than what shows on your resume. Take matters into your own hands and take action now.
Start a side business
You’ve always dreamed of being your own boss. And while now may not be the time to quit your job and go 100% on your own, it may be the time to start a side business. It’ll allow you to pursue your dream and make a little extra money while you’re doing it. You’re probably thinking, start a new business when so many businesses are failing? Yes, you heard me right. Think about it for a moment. Even in a bad economy, there are opportunities to be had and you have to grab them. It comes down to the basic supply and demand rule, so think about how you may be able to benefit from a bad situation.
Maybe you’re a marketing manager. In this economy, one of the first cutbacks that a company makes tends to be their marketing department. Fortunately for you, these companies still have to market their products and services. They just can’t afford to employ the marketing people full-time, plus benefits, plus, plus, plus. So what about becoming a marketing consultant to these companies? It’s a win-win. They need marketing services and you have marketing services to offer. You may make enough money on the side to put it all into savings and investments. You may even find that it is lucrative enough to take it full-time.
Take a minute to think about your talents. Then take a minute to think about how you can profit from these talents.
Lower your spending
We all spend frivolously at some point in our lives. Do you really need a Starbucks every day? Or is it really necessary to spend $200 a month eating out at restaurants? The answer to both questions is no. One of the easiest ways to build your wealth is to stop spending it all! Keep tracking of your spending for one month. Then go line-by-line on your spending sheet and see where you can cut. You may find a couple hundred extra dollars, a few thousand dollars, or 20 extra dollars. Whatever the amount, start socking that money away instead of wasting it. And don’t mistake cutting back your spending for giving up living, either. There are plenty of free and low cost ways to entertain yourself and fill your coffee fix (or whatever fix you have).
Don’t make your exit from the stock market… stay calm
If you have money invested in the stock market, the odds are good that you’ve seen it decrease in the past year or so. This is not the time to panic, sell off all your investments, and start stashing money under your mattress. Panic sell-offs are just making a bad situation worse. The market is cyclical and goes up and down. Your wealth will go back up when the market goes back up–and eventually it WILL go back up. This is not to say that you should just sit back and watch your money disappear either. Evaluate your investments once a year and make necessary changes to watch your money grow. Now may be the perfect time to invest in a company that was too expensive before. It’s kind of like the stock market is having a sale. You can get into investments at bargain basement prices.
Even when times are rough, you can take action and turn the bad times into good ones for you. It’s not always about running off and getting a new job to increase your income and increase your wealth. Sometimes it’s about creatively thinking of ways that you can take advantage of the bad economy and turn it into a positive for you.