How do you prepare for the coming future?
This is a question that many people have asked me over the past year, and one posted recently here in the BP Forums.
In my case, we are simply cutting out all of the luxuries like: eating out, traveling, buying impulse items, and any other expense that are just not needed.
It has been tough on my wife and kids, but we have gone as far as making it a fun game to find ways to be frugal. We are back to the old fashion 7:00 dinner at home, and at the table!
Instead of heading to a Bounce Zone, we are playing board games. I believe this down economy will actually bring me closer to my family, and that is priceless.
On the business side, I now plan my routes for the day, pay closer attention to my gas costs, pack a lunch when I can, and try to stick to a weekly plan and small operating budget.
When I take clients out to eat, there is no more impressing them with a fancy meal. It might be more of a cup of coffee, or lunch at a local mom and pop eatery.
In some ways, it is a positive thing, as it is creating an even more solid discipline of the business and life practices that should be adhered to anyway.
I believe that we should keep informed as to what is going on, but realize that there is a time to turn off the TV and relax. Negativity can consume the soul if we let it.
So while my advice might not be technical, it is practical.
Live your life like you are in survival mode, but have fun with it. Be frugal, save money, make sound investments, spend time with the family, and relax.
We will get through this, there is no question in my mind.
I will admit that I am scared, it would seem foolish not to be. However, I also look at the next couple of years as an incredible journey of opportunity.
The older I get, the more I realize I have made some very poor choices in my life that caused me to learn most of my lessons the hard way. Now I clearly understand the people that always told me: “Life is what you make it!” and “Keep it simple stupid!”
So to answer the question of how to prepare for the future in one basic statement: GET BACK TO THE BASICS!
Have a profitable day everybody!
Harrison Painter
Comments (4)
Governments answer to getting us out of recession = raise all our taxes, continue frivolous spending, encourage us to spend more than we make, print more money! Yeah, that will do it.
Will Barnard, over 15 years ago
I read Richest Man in Babylon every year. It is on my coffee table right now, as a matter of fact!
Joshua Dorkin, over 15 years ago
Economist? Too funny.......Not me my friend, Econ was the class I struggled with the most in college! LOL I look at it like this. The masses will continue to live above their means and spend more than they make. The government is still pushing people in that direction, and I feel that they promote irresponsible behavior. The few of us (percentage wise) that batten down the hatches will be in a much better long term position. There has never been a better buying opportunity in real estate, at least not in my lifetime. I know many people that could afford a small investment mortgage on what they currently spend a month on Starbucks and Applebee's! So when I say cut back, maybe I should say that we need to put our money to work for us, instead of working for it to pay for things that you do not really need right now. Back to Basics! I see too many of my friends working all of this overtime to have boats, motorcycles, and other toys, but then not have any time to enjoy them. As the overtime cuts back, they are forced to sell these luxury items at a deep loss, and they never really enjoyed them anyway!!!! This is the classic dog chasing his tail scenario. (I know, I used to be one of these people!) I am back to living a frugal life. I have promoted the book before, but feel I can not do it enough. Read "The Riches Man in Babylon". It will change your life!!!!
Harrison Painter, over 15 years ago
Great suggestions for how we can all cut back a little and save, Harrison. We're in such a catch 22, though. It is important to stay careful, given what the economy is doing, but at the same time if we are all careful and slow down/stop our spending we're only extending the situation. What say you, economists?
Joshua Dorkin, over 15 years ago