A Bad economy can have a detrimental effect on a lot of people. When the inflation rate does not go as planned we
tend to have a bit of a problem. In this post I am going to discuss the causes of a bad economy and also how to survive the bad economy when it happens.
What are the causes of a bad economy?
- It gets harder every day to get a loan from the bank. The money that you have to pay upfront gets bigger and your down payments each month also increases. This is not good news if you are planning to buy a new house. If you know a little bit about economy, then you will know about the supply and demand concept. If the number of house buyer’s drop, then the prices of homes will increase and it will be more difficult.
- High unemployment rate. If a person does not have an income, then they will only buy that which is necessary. This is where we need to know the difference between luxury and necessity. Restaurants, Motor dealers and a lot of companies that promote luxury will suffer because of this.
- Bad inflation rate. Depending on the country or let me rather say the currency there will be times when prices of certain commodities will increase. Especially gas, food and things that are mostly imported from other countries will get more expensive.
- The financial state of a country. It is not a good sign if a country is in major dept and if it will have to face bankruptcy. This has a major influence on the livelihood of that country’s citizens. Crime rate will increase because of the lack of service from the police (Remember that the police is working for the state and if the state is bankrupt, then they will have to cut down on expenses) and also because of unemployment.
What can you do to survive?
1. You can start your own online business.
The good thing of online marketing is that you are not depended on your country to make an income. Your business will reach the far end of the world and this means flexibility. If the currency of your country is weak, then you will get more in return from your money.
The only problem with internet marketing is that everyone thinks it will be profitable overnight because it is the internet, but it takes time just as an “offline” business. You do not need a lot of money to start.
2. Save money where you can.
If the bad economy has struck your wallet, you cannot afford to live in luxury. Your buying habits must change and you should learn how to budget. This is done by measuring your expenses against your income. You will also need to determine your income after tax.
3. Why not prepare beforehand against a bad economy.
This is one of the hardest things to do. There will be times where the economy will be nice to you and where you have a little extra to spend. Maybe you got a raise from your job or you got your bonus at the end of the year. Instead of spending it on useless things that you do not need, you can rather spend it on things that can bring you more income.
Make your money work for you in the case of investments, shares and bonds. It is also much better to make a loan to start your own business rather than buying a new car.
4. Take online surveys for extra cash.
Taking online surveys are becoming a very popular method of earning extra money in the comfort of your own home. Doing surveys will not really replace your job, but it can really help to fill the gaps where needed.
5. Consult a financial adviser.
There are a lot of things that these guys can teach you and help you with. My financial adviser helped me with tax and I actually saved a lot of money. They can help you to plan for the future where a retirement plan plays a huge role. They can also give you advice on how to get a loan from the bank and how to save money from your down payments.
There are a lot of ways to counter the bad economy and also how to prepare for one. Thanks you for reading my blog and if you have an extra tip that you want to share, you can leave it in my comment box below.
Before you forget you might want to take a look at the training provided here at Survey Royal if you are interested in participating in online surveys . There you will get loads of survey’s for free and I will also help you through the process.