Surviving the Recession

Living through a recession.
While many pundits and politicians were for months unwilling to admit that we are in a recession, in late 2008 the National Bureau of Economic Research announced that the US recession was "official." That came as no big surprise to the millions of unemployed, to homeowners who have found they can no longer make their mortgage payments, or to people just like us all over the world who are suffering from the same economic downturn in our global economy.

The NBER defines a recession as "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators." Good definition: Less production means that fewer workers are needed, so people lose their jobs and "real income" declines. This means the market for goods and services gets smaller because people have less money to spend. So production slows further, meaning more jobs lost, and so on and so on. The value of market shares in companies declines because they are less profitable, so money you put in a 401K or IRA may well be worth less than the dollar figure you invested, and the world watches Wall Street reports with extreme unease.

You may have watched the show "Fear Factor." Well, the element of fear factors largely in a recession. You've already seen the ways it affects you and your family and friends. A simple trip to the supermarket becomes stressful, as you and everyone around you murmur, "No, we can't buy that anymore. It's just too expensive." You may worry endlessly about losing your job or your home. The big questions on everyone's minds are "How long before things get better? How will we get through this thing?"

Surviving the Big R

Much as it might feel like the only option, this is not the time to panic. Rational and logical thinking are the keys to staying calm and deciding on the best course of action. First, you can change your spending habits so you can build a cushion against possible worse times ahead.

There is no one solution that fits everyone. Unless you have absolutely no clue about budgeting, it's fairly easy to find ways to cut back on what you're spending each month. You can eat at home more, skip the daily lattes, and put on a sweatshirt instead of turning up the thermostat. You can plan your errands to avoid wasting gas, and carpool when possible. You can stop using your credit cards, and pay them down as soon as possible. If you have an ARM or high-interest mortgage, you may want to look into refinancing your home. (Be sure to consider refinancing fees, though.)

These are all good things to do, but for too many folks, taking these small measures aren't enough. There are a good number of people stuck with real estate they planned to rent out until they could sell it for a big gain. They have chosen bankruptcy and have accepted foreclosure. If only they had realized that there is a way to generate rapid cash flow with minimal effort and investment. It's so simple it sounds crazy-but the one solution that does fit everyone who is the slightest worried about the recession is to get into a business where you can make more money now and never have to worry about getting fired.

A Bigger, Better Solution
The prognosis for the corporations whose names we all know so well may be gloomy, but there is a business field that doesn't get much attention. Internet businesses, most owned by just one or two people, are not participating in the global recession. They don't have to. In fact, Internet marketing businesses saw high profitability in 2008, during the same time period that all the economic indicators for other business sectors were tanking.

Why? How can this be?

Number 1: With a home-based Internet business, there is no overhead. No bricks-and-mortar building to pay for, maintain and pay taxes on. No insurance to pay. No employees. Yet with your own home based business, you can write off some of your property taxes, insurance, mortgage interest, utilities, and maintenance-things you're already paying anyway. So having a home-based business saves you money right away.

Number 2: You are not involved in the cost of manufacturing goods: raw materials, labor, machinery, shipping costs, insurance, and so forth.

Number 3: The risk is small to nil. Unlike the real-estate barons discussed above, you won't find yourself stuck with an impossible debt you can't pay off. Unlike people who speculated seriously in the stock market, you won't find yourself heavily in the red.

Number 4: You can appeal to a vast global market. It is now estimated that 1,500,000,000 (that's one-billion, five-hundred million) people in the world depend on the Internet for their major source of information. They also use it to conduct business. The fact that you live in a tiny town in the US and one of your clients lives in a tiny town in Switzerland means nothing. You can communicate and do business as if you lived next door to each other.

Like we said, everyone's situation is different. Maybe you're just a little nervous and would like to save up some extra cash. Maybe you've lost your job. Maybe you retired recently and wish you had waited. Perhaps you need to be home to care for children or another family member. Regardless of where you live or your current financial situation, you can launch and develop your own business using only the Internet and a telephone. You will be astounded at how rapidly your finances can take a turn for the better!

It might seem like Wall Street or the chairman of the Federal Reserve are in charge of your life until things get better, but you don't have to accept that. You can take charge of your life and your finances and stop worrying. Step one is simple. It costs absolutely nothing, obligates you to nothing. Simply fill out the form for additional information on the home based business explosion and how it can help you not only survive the recession, but get the worry monkey off your back!