When people are fearful, be greedy. This is the best advice you will hear during a recession or an economic downturn. As we discussed in our previous articles, this recession is in most part mental, it is worst than it needs to be due to the lack of confidence the people have in this country and therefore due to fear, fear of losing employment, fear of refinancing, fear of diminishing home values, fear of layoffs and lack of credit are all reasons that people’s wallets have been hiding.
So what should you do? Spend or Save?
We discussed previously your need to live within your means, and the basic money saving tips you can follow to save more, which is always good. Lets not however get carried away. Fear is the reason people don’t take risk and therefore don’t experience real growth but instead live in their comfort zone and find steady moderate to no growth. So take a calculated risk. Do the opposite of what most beginners do.
If all your friends are afraid to invest in stocks that are at a all time low, and they are afraid that that the world will collapse and they will loose their miserable small investment, then you do the opposite and take a chance and invest your money for the potential growth within a year. How about the housing market, remember when your friend told you home ownership is great and you didn’t buy the home, and then your other friends all bought homes and you waited till it seemed like a sure thing in 2004 just to realize that 2005 it all went back down and you lost more than your friends gained. If you wouldn’t have followed the wave and taken a risk. You’d be buying a Ferrari and own your house outright but you didn’t make that move cause you were scared.
When looking at all the opportunities you missed, all the money you didnt make and all the wealth that other are enjoying. Don’t you wonder, this could be me.
Be that guy that makes a move that is worth a 1000 words and becomes that guys that is spoken about everywhere, because of that move. So please don’t miss out on what you know you should or want to do because you fear life and what might come of it.
Are you going to change and become that guy?