Five Ways To Prepare For A Recession

Almost half of U.S. chief financial officers believe a recession will strike the U.S. economy by the end of 2019, with the tight labor market and growing trade tensions driving economic jitters among corporate America. Additionally, more than 80% of U.S. CFOs think a recession will strike by the end of 2020, according to the Duke University/CFO Global Business Outlook survey released Wednesday. (source: wsj) While there has been a significant amount of good news about the economy, the heightened market volatility, rising interest rates, and companies now having trouble to find and keep qualified employees has many people nervous.  Not to mention the fact that it seems there isn’t a week that goes by where CNBC doesn’t have a scroll at the bottom saying, “Global Worries Send Markets Downward”. We can never predict exactly when a recession will hit us, but here are five tips to prepare for a downturn in the economy. Get your emergency reserve to 6 ...

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Please Slap My Hand When I Spend Money!

For Generation X, I’ve noticed something over the past couple of years around money that seems to becoming a trend.    Even though you are college educated (maybe an MBA), have a great job as a VP of company, and have traveled to several countries around the globe, you’ve reverted to the behavior you had when you were in college.   The simple rule is this.  If there is money in your pocket, then it’s sure to catch fire sooner than later and burn a hole in your pocket.    It doesn’t matter if it is a new pair of boots you see in a magazine, a remodeling of your bathroom that could probably wait, or staying at the best hotels like a Ritz Carlton or the Four Seasons.   Gen X’ers have seen a terrible recession over the past few years, but the trend is returning that spending money is a hard habit to break.   Gen X’ers have that Cyndi Lauper slang in ...

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Is It Time To Rent A Friend?

Sometimes I wonder whether the internet is a good thing or a bad thing.   When it comes to making smart money moves, the internet has opened up a realm of possibilities making it easy for people to buy, rent, barter, or sell their goods on the internet to almost anyone anywhere in the world.  I hear people comment sometimes that they think the internet can be creepy with all of the social media and access people have to personal information at the touch of their fingertips. With websites like eBay and Craigslist, the buying and selling of goods became painfully easy.  You really only need a decent digital camera and some imagination to get people excited about the piece of merchandise you are selling, and you can make money on just about anything in a short period of time.   However, we quickly realized that people on Craigslist may have opened an invitation to sell other things that the website wasn’t ...

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It’s Saturday Night And There Is No Recession

My wife and I decided we would go out for dinner this past Saturday night.   She’s always telling me that you’ve got to make a reservation on Saturday night because things get busy and we’ll have to wait for an hour without one.   Since there are so many restaurants to eat at in Atlanta, I usually brush her off thinking that surely there will be some good restaurant that I can walk into on a Saturday night.   We are going through challenging economic times right now, correct?    So it would make sense that I could step out on a Saturday night and grab myself a table at just about any restaurant?   Wrong . . . Just flat out wrong. I live in a large suburb of Atlanta and not too far from Roswell where the downtown area continues to build up on Canton Street with small pubs and restaurants.    We headed down around 8:00 to a small restaurant that serves ...

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Why Doesn’t The Government Understand The 80-20 Rule?

I spent many years of my life running and leading sales organizations. One of the principles I learned along the way is sometimes referred to as Pareto’s principle.  This principle is also known as the 80-20 rule, the law of the vital few, and the principle of factor scarcity.  It states, for many events, that 80% of the effects come from 20% of the causes. (source: Wikipedia). Italian economist Vilfredo Pareto observed in 1906 that 80% of the land in Italy was owned by 20% of the population, and developed the principle by studying that 20% of the pea pods in his garden contained 80% of the peas. In modern theory, many businesses will often share with their sales force that 80% of the sales come from 20% of the clients. In the past year, we have heard all sorts of ideas from politicians about how to fix the recession, restore jobs, and get the economy moving again in the ...

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What happens when the Unemployment Check runs out?

With almost 1.5 million people nearing their end of the unemployment check, the big questions will be what happens next? If we are depending on the large corporations to create new jobs, then we will be waiting for a long time. Big companies have been spending the last year figuring out how to reduce costs in order to meet the expectations of their shareholders. After working 16 years for a large company, I learned restructuring is just another way to say cost cutting. ...

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Where did all my money go??

We're about 60 days into 2009, and one of the things people have been asking themselves is "where does all my money go?" When you look at your overall financial situation, your 401(k) has now been reduced to a 201(k). Your real estate property probably has devalued substantially, and really at the end of the day you make some income but you're not quite sure where all of money goes after you pay your expenses. One of the things that we recommend at this time is to ensure that you've got a quality spending plan in 2009. ...

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