How to Survive and Thrive in a Recession
6 months ago, it was still possible to find people who didn’t believe that the economy was headed to hell in a hand basket. Today, I don’t think there’s a person with an IQ over 75 who doesn’t recognize that we effectively have a Great Recession – globally.
This, of course, has a lot of people asking questions. How can individuals and businesses survive? How can they thrive?
Like most things in life, the answer is actually quite simple:
Treat every $10 you make or spend as if it was $100.
Treat every $100 you make or spend as if it was $1,000.
Treat every $1,000 you make or spend as if it was $10,000.
Treat every $10,000 you make or spend as if it was $100,000.
Treat every $100,000 you make or spend as if it was $1,000,000.
Treat every $1,000,000 you make or spend as if it was $10,000,000.
That’s it folks. You don’t need to make it more complicated than that.
Poor money management got a lot of individuals and businesses into a lot of trouble and smart money management is the only way to get them out.
When it comes to entrepreneurs, far too many don’t appreciate each dollar of revenue earned and far too many don’t appreciate what each dollar of expenses really costs. As such, they mismanage.
The easiest solution: treat what you make and spend as if it was ten times the amount it actually is. Think $100 in revenue is not worth fighting for? Pretend that it’s $1,000 in revenue. Don’t think twice about spending $1,000? Pretend that you’re spending $10,000.
Adopt this approach and it will make a difference. Your company will earn more and spend less, which in reality is the foundation of every successful self-sustaining business. Additionally, when it comes to your personal finances, this approach is at the core of wealth creation.
The wealthiest people I know are religious about maximizing what they have coming in and equally religious about minimizing that which goes out but does not come back in greater quantity. That approach works well when times are good; it’s a prerequisite for wealth creation when times aren’t so good.
I agree with some of what you said. However a person with poor money management skills is likely to waste money no matter how much money they are managing. Moreover they are things at play that can pervert the decision making. A person who has an addiction or lack of self discipline is likely to knowingly waste money. Then there is what I call the gullibility factor. Think of the Bernie Madoffs of the world looking to swindle people, especially the desperate. example: Call us now and we help you fix your credit…get free government money for you…or my favorite… 20% return on you investment. In other words for a lot of people your advice is easier said then done.