Don’t worry, make money
Recession? What recession? There never was a recovery… I think most of us agree, post 2008 there has been a new normal. The only sector significantly adding to their staff compliment is the government, and while that takes people off the streets, guess who is paying for it (and wait for more tax, probably more VAT next)? We are part of the ‘resource exporting’ block of economies that are being hardest hit by the slowdown in China, even the GDP in Oz is down to the 2% range. We have dipped into negative GDP for the last quarter, and a second dip will officially put us in recession. So, how can you protect yourself?
Protect your income: If you’re an employee, retrenchments are on the rise. Those retrenchments are coming from expected industries like mining ( if you’ve been watching the economy), but if you look offshore, some of those job layoffs are coming from unexpected sources. Deutsche Bank is shedding 23,000 jobs about ¼ of its workforce. Those jobs are coming from technology and back-office departments. Don’t put your head in the sand, is your job secure? If not, what can you do about it? Can you up-skill and make yourself indispensable? One of the best investments you can make is in yourself and your education, irrespective of your age. Should you get a really professional CV together and get it out there? If you’re looking to move job, download my free eBook HERE to show you how to protect your wealth when you do so. If you don’t have an emergency fund of at least 3 months expenses, start it now. This is a great place for your bonus, get your brain used to the idea of investing your bonus before you or your spouse mentally spends it.
Be flexible: One of the best ways to stay financially flexible is to pay down your debt. Start with the most expensive debt first – usually credit cards – and once paid off, close them. It is often a good idea, especially if you travel, to have one Visa card and one MasterCard, but that Mastercard could be a cheap debit card like Capitec ( it works just fine overseas, it is all I use from ATMs to tills). Keep up to date with mainstream technology, today that isn’t just PCs it is tablets, apps and mobile technology too. There are classes available in all of those if you’re clueless. Let go of the assumption that you’re going to be in the same job for the rest of your life. Unemployed is one thing, unemployable is another – and that is probably your fault. If you’re putting a new investment together make sure it is flexible and that you can stop and start it immediately without penalty (yes, they still exist).
Stay curious: Whole new careers are being invented every week, being proudly clueless could be the death sentence to your job or your company. It is important to have a vague idea of what is going on in the economy, and a more than vague idea about your personal wealth portfolio, including your group benefits. Technology has been here for decades, it isn’t going away, and it can actually be fun (the economy – not so much). An app like 22seven (available in the iStore and Play store) is a great and fun way to keep ontop of all your bank accounts and investments on your smart phone or tablet.