How to Save & Benefit from the Economic Crisis

It is very popular to talk about the problems and causes of the economic crisis in the USA and world, but not many people are talking about the benefits, profits, or ways to save during the economic downturn. This article focuses on the good things that can result from a financial and economic crisis.

Difficulty: Moderately Easy

Instructions

1. Keynesian Effect - Fight fire with fire. It seems ironic to spend money in order to help the economy, but one of the most common ways of boosting the economy out of recession is through an increase in public spending. And one effective way of spending public money is on major public infrastructure. These include spending money on public transportation, energy efficient products, and public welfare programs (which was a result of The Great Depression). In general, our country can benefit greatly for years to come if we focus on ways to improve our energy efficiency and how our country is run. In the same way, on a personal level, you can take this time to evaluate your efficiency. Are you wasting energy? Could you be cutting utility costs by using energy saving light bulbs, putting insulation strips along windows and doors, shutting off lights and the TV when not in use? Even something as small as using a space heater or heating blanket instead of using your central heat can save you $50 a month or more. Start to increase your efficiency.

2. Workers rights can be greatly improved as a direct result of major economic crises. Union memberships improved and doubled after the Great Depression 1930-1940. As the economy starts to pick back up, look for opportunities and causes that support improving your working conditions and benefits. Join together with others and support these causes to increase beneficial labor laws, and working conditions.

3. People stop unnecessary consumerism. An economic crisis naturally teaches people to stop buying things they don't need. When I asked my mother to buy me something, she would often say "Do you really need it?" It sounds simple, but asking yourself those 5 words before a purchase will often make you realize that you are about to waste your money on something you don't need. You'll be amazed at how much you can save a month by avoiding impulse buys and products. Another way to avoid these impulses is to write out your grocery and shopping list before you go to the store.

4. It teaches people to save for a rainy day. Up until this point, most of "today's generation" in America have not seen a rainy day. They have not had a reason to save. Learning to save is a very important habit. Budgeting can be rewarding and help you to set aside money for a future goal. The benefits of this practice can be seen when you make a child earn and save for a car or product vs. giving them a car as a gift. If a child actually earns something on their own, they are much more likely to appreciate it and take care of it. It's a invaluable lesson of life. Do yourself a favor and educate yourself on using credit wisely and establishing good saving habits. Pass what you've learned onto family and friends. They'll be grateful to you throughout their life.

5. Questionable loans and easy credit. Many university students are surprised to begin receiving offers of several credit cards while in school with no income. It seems that the credit card companies are offering "free money" to these naïve adults. Often, students are taken advantage of and max out their credit cards and start off their careers with huge consumer debt and university student loan debt. It's a terrible cycle. The same happens when people go to buy their first home with "too good to be true" initial monthly mortgage payment rates which unexpectedly jump after a set amount of time. The benefit of an economic "crisis" is that often these predator practices are often evaluated and controlled. If people aren't educated on debt, credit, and saving, then these systems need to be controlled or we need to start educating our people. Be wary of aggressive attempts for mortgage brokers and credit card companies to get your business. If it seems to good to be true, it might be. Just be sure to read the fine print and ask questions. After all, it's your money and if it goes bad, it's your problem to deal with once you commit to something.

6. Reality strikes. It often takes some great shock for people to wake up. Some people go through life day dreaming and forgetting what is really important in life. An economic downturn can sometimes bring good to a family. Maybe they have to depend on each other. Maybe they have to begin sharing meals or housing. Maybe they start to realize all of these material things are not so important after all. Maybe we should be grateful for what we have and understand that what we have is often most important. Things we often take for granted are: family, friends, religion, well-being, food, shelter, and compassion for others. If an economic crisis can help us to understand this truth, then an economic crisis may be just what the doctor ordered!

Tips & Warnings

• Always focus on what is good about a person, object, or situation. If you focus on good things, good things will enter your life. If you focus on bad things, bad things will enter your life. That is the law of attraction. Whatever we focus our mind on will attract itself to us like a magnet.

Resources

• Bring wealth and good opportunities into your life with the 11 Forgotten Laws of Attraction

[nikki1]

on 7/3/2009 thumbs up..

[Rachellewms]

on 12/29/2008 Anyone who knows about the legacy of John Maynard Keynes is someone that I can listen to. Thanks for sharing your knowledge of how to benefit from an economic crisis. :)