July 29, 2009

Beating the Recession

Posted in obstacles, planning, saving tips, Uncategorized at 2:48 pm by kimsan23

A few months ago, a friend of mine heard a guy in a convenience store ranting about how the recession only affects “rich” people.  The comment was basically like this:

Recession?  We normal people won’t get affected by that!  It’s a problem for rich people!

I am surprised at how uninformed (or in denial) many people are when it comes to the ongoing recession in the USA.  Of course, analysts are saying that the market is picking up and getting better but you see, try not to get your hopes us too high!  25 years of making financial mistakes won’t be repaired in a year…thankfully, it won’t take another 25 years as well.  Give or take 5 years and hopefully, the economy experiences a full turnaround in favor of the consumer.

In the US, people are spending less to battle the economic situation.   They taking steps to ensure financial stability on an individual level.  Just because the recession has made a direct hit on the US market, doesn’t mean that we are not affected.

For the call center and BPO industry, it could go up or down.  US based clients may outsource more given the tight budget they currently have or may close down some business which may result to outsourced projects being canceled.  I myself have heard of a number of small business BPOs that have shut down Philippine operations because of account/client cancellation.  So you see, no matter how far away the US is from us, we are also directly affected by the economic crisis.

The US economic situation affects everyone involved in global business no matter how big or small…from the owner of the business down to the laborer.  this is a reality that many people are not accepting and non-acceptance leads to being complacent and carelessness.

Even when one is seemingly unaffected by the economic crisis, it is always advisable to be ready for any financial emergency.  Fuel prices are rising again (it just went up by 2 pesos) and normally, consumer good prices would rise as well.  Services will also become less cost efficient and many people will have to exert extra effort to maintain their lifestyles.

Beating the recession is not an easy lifestyle change but IT CAN BE DONE.

Many of things I’ve written in my blog lead basically to achieving financial freedom.  Now it takes on another role, gaining financial security amd preparedness.

1. Don’t cut down on savings, cut down on spending.  Prices have gone up but I still manage  to save the same amount of money I used to save even before the recession hit.  Remember, savings first before spending!

2. Cut down on leisurely activities or downgrade.  Instead of eating out 3 times a week, reduce it to once…etc.

3. Plan for meals at home and packed meals to save on food bills.

4. Unplug electrical appliances when not in use.  Put your airconditioner on timer settings if you must use it when you go to bed.  It saves on electric bills.

5. Try your best to reduce habits like smoking and alcohol.  These are expensive habits that could cost you a lot of money lost in the long run, not to mention they’re quite unhealthy as well.

6. Don’t invest your heard-earned money in get rich quick schemes, you may just lose it!  (Been there, done that and learned!)

7. If you are in debt, start getting out of it NOW.  Try these tips on becoming DEBT FREE.

If all of make a conscious effort to battle the recession by cutting down on spending without cutting it out  completely (which is impossible and if done, the market will definitely crash!), it would be easier for us to prepare for many financial emergencies that could affect our way of life.


1 Comment »

  1. Jonha said,

    These are pretty basic tips yet helpful reminders. I appreciate you for sharing them.

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