Since 2008, there hasn’t been real economic growth in the United States or Canada. The unemployment rate has hovered below the 10 percent mark (the real rate is in the low-20s), the budget deficit and national debt continue to rise and the number of new businesses is at a 30-year low.
Although there are a vast number of negatives to a down economy, such as low interest rates, tax increases and less employment opportunities, there are some positives if you understand how to save, invest and find interesting prospects.
A recession is similar to a cold: it’s good for you because it releases the germs from your body and allows you to recoup. The same thing is applied to an economy: the competent people take over from the incompetent people.
Here are five aspects that can be quite positive for you:
Rebuild the Savings
For far too long, households in the Western world have neglected their savings accounts and have just consumed instead of focusing on the future. Consumers have just consumed rather than saving for a rainy day (more on this can be found here).
Fortunately, when the economy is down, many individuals tend to save their nuts like a squirrel. Due to a paucity of economic escalation and fear of losing one’s job, it’s inside of us (most of us anyway) to look after every penny. In a down economy, we won’t buy 32” televisions, but we will think about that tax-free savings account.
Some may feel disenfranchised with their chosen career field, but because the pay was too great there was never a motivation to find employment elsewhere. In this economy, many are finding part-time jobs and they may even be in a field that is more enjoyable and exciting.
A part-time job could be done from home, whether it is data entry, writing, editing, web design or even pet sitting. There are a lot of at-home jobs that pay from pennies to hundreds of dollars (if you know where to look).
If you’re not too worried about money and have been considering investing in that stock, mutual fund or commodity, now may be the opportune time to take advantage of that investment. In an economic downturn, there are cautious bears and there are intense bulls. Sure, one doesn’t have to put all of their eggs in one basket, but when something is low right now, it could rise in the future.
Since the burst of the housing bubble, property values are decreasing, though they should be devaluing even more but the government is throwing everything at it except the kitchen sink. What does this mean? If you’re interested in owning a home, now may be the time to do it at a reasonably low price.
When an economy is roaring, there are a lot of people who tend to live the high life. Whether it is buying a BMW, purchasing a cottage or maxing out the credit cards, there are plenty of sinful financial hawks in a prosperous economy.
During an opposite period, condensing one’s lifestyle to being at home with family, going for a walk throughout the city and making home-cooked meals instead of eating out can be rather rewarding.