10 Ways to Survive and Thrive in a Recession

With the economy and the housing market in a mess, it’s easy to get caught up in thinking that the sky is falling. If you’ve lost your job or are facing a foreclosure or just falling behind on your payments, there are a lot of us out there who may feel hopeless in times like these. But these trying times may really be just the thing you need.

Throughout history there have been economic booms and there have been economic busts and people have had to survive through them. Like they say, pressure bursts pipes, but it also makes diamonds. Now is the time to be a diamond.

I get plenty of calls from people all the time who are facing bad situations and have no idea what to do. I looked back at times in the country’s history when the economy was in trouble and people were facing devastating personal circumstances. I took a look at some of the things people did to survive and thrive in those times. We don’t need to reinvent the wheel. We can take lessons from the past and apply them today.

Keeping that in mind, I created a list of 10 ways to survive and thrive in a recession. There were so many great ideas and great businesses that were started because people had no choice but to try something new. 

1. Co-op with your friends and neighbors – Offer exchanges rather than charging each other. If you’re a carpenter and you have a friend who’s a real estate agent, maybe offer an exchange of woodworking for the house in exchange for a percentage of the commission.
   
2. Diversify your business –  If right now, you own a landscaping business, expand to gardening, flower sales, horticulture, any and everything that involves plants. The more services you offer, the more opportunities you have to get business.
3. Entrepreneurship – If you’ve got nothing to lose, take a risk. Now is the time to take that chance on yourself and your own business that you’ve always wanted. Some of the greatest businesses in this country, businesses that have been around for decades, were started during tough economic times.
4. Take lower paying job – How many success stories have started with a man or a woman getting their start in the mailroom or as someone’s assistant and going on to own the entire company? Small businesses may offer jobs that don’t pay a lot, but offer opportunities for quick advancement. Start from the bottom and work your way to the top.
   
5. Get on the internet – There are tons of marketing and money-making opportunities there. Everything from social networking to selling on eBay can help you bring in extra cash. And if you’ve got a great idea that the world has been waiting for, you could be the next internet multimillionaire success story.
6. Get creative – Sit down and think up new and creative ways to market yourself and your business (if you already own one). It could be something as simple as being the only business in town that's open after 5 p.m.
   
7. Look to invest – If you’re someone lucky enough to have money still free, now is the time to make an investment, especially in real estate. If you’re thinking of buying a house or investing in real estate, don’t be afraid.  Take advantage
8. Cut costs – This seems simple, but when times are hard you it can be tough to evaluate what you really need and separate it from what you want. It could be something as simple as dining out or buying generic brands from the grocery store that saves you a lot of money in the long run.
9. Cut up those credit cards – Buying on credit may seem like a good idea, but interest charges and fees will cost you a lot down the road. Remember what your grandma told you, “If you can’t pay cash, you can’t afford it."
10. Don’t be afraid to miss payments – While it’s never good to get behind on your bills, it will cost you less in the long run than taking out a high interest payday loan or credit card. You may take a small hit to your credit now, but that's a lot better than getting bogged down for years with huge payments for years and years.

 

Real Estate Mike is host of the syndicated radio show, “Let’s Talk Real Estate with Mike Andrews.” He is a published author, real estate expert, entrepreneur and investment advisor. Follow him on Twitter Twitter.com/RealEstateMikeA.