Americans are being made to believe that their financial survival is based solely on what they can save by the so-called financial experts. This is ridiculously incorrect and limited advice and will only cause you more damage. Your financial condition cannot improve by retreating and can only be improve by advancing your production lines.
The unprecedented commitment to doom and gloom scenarios and 24-hour-a-day screaming to retreat is working! Case in point-the first two months of 2009 the savings rate in this country went from under 1% to almost 6%. So while Americans are listening, this action by itself cannot change your financial position. Even with saving rates up almost 4 times, the financial position of the average American decreased. Your financial survival depends on a combination of both producing income and a savings plan– not one or the other.
You cannot advance by retreating; you will only disappear. The great tragedy of this time is how many individuals and companies are going to go backwards not because of the economy but because of their response to this economy. Millions of Americans sit around the kitchen table and water cooler everyday acting like victims and trying to handle contraction with contraction. When you have big problems you don’t handle it by retreating, or by discussing it around coffee tables or water coolers.
Now is the time for action not inaction, expansion not contraction. Periods of economic contractions are incredible opportunities for those that take the right steps. In my book Sell to Survive I discuss exactly how and what you have to know to survive in a contracting economy. The first thing to do is to decide that you are going to survive and prosper. Second, know that it is up to you and no one else! Third, attack, conquer and seize market share whether you are an individual or a company.
If you have lost your job, get over the shock and don’t waste your time with resumes as no one is looking at them. Get in the job market, knock on doors, meet face to face with owners and upper management and sell yourself to them on how you can help their company. Taking extended unemployment checks will only make you less valuable in the job market 32 weeks from now.
If you have lost money in the stock market, reassess your portfolio. Sell the losers and take this opportunity to buy those companies that you know are going to yield profits.
If you run or own a company, pour on the marketing and promotion and aggressively hire the best people in the market to work with you. They want to work with someone that is expanding. Make sure you include in your advertising that you are hiring! If you are going to go out of business do it swinging.
Decide to survive and prosper! Decide to be part of the solution not part of the problem. Now is the time to expand, not contract, to have guts not fear and advance not retreat. Now is the time when you must do more, not less. Embrace, use and solve problems, don’t be the problem! Remember YOU NEVER HANDLE CONTRACTION WITH MORE CONTRACTION!