7 Reasons Why The Recession Is Good For You
America is dealing with an economic crisis. Everywhere we turn the media is covering negative story after negative story.
Sadly, the media fails to highlight the “good” that comes out of recessions for individuals and entrepreneurs.
Now before you say, “There is never anything good that comes out of recessions,” I challenge you to read the rest of this article with an open mind to see if it makes you think differently about our current situation.
So read on, oh courageous one, here is why this recession is good for you…
1. Tough Times Help You Monitor Cash Flow Like A Hawk
You know how in boom economies most people become pretty careless about where their money is flowing through in their life? Well in tough economic times, individuals and business owners must challenge themselves to manage and allocate the cash that is flowing in their business to better sources which will help them stay in business through the storm.
Why It’s Good: By shifting your focus to monitoring your cash flow like a hawk in a tough economy, it will allow you to make better business and personal decisions about where and how to allocate cash in the future as the economy begins to recover. This will further lead to more cash flow on the backend and higher profitability in the long run.
2. Focus On Personal Friendships
When was the last time you spent some high quality time with a really good friend? Before you answer think about 3 things you can do with friends in tough economic times that still would be fun, but not cost a lot of money. In these tough economic times, building stronger bonds with your friends is important. Not only should you support each other, but further do whatever you can with them to get their mind off of the tough economy as well.
Why It’s Good: Building stronger bonds with friends when the economy is suffering helps you in the long run, because it allows you to solidify your trust in those friendships you have taken so long to build. Spending time with these friends is also a healthy way to escape the stresses the economy is putting on you. Everyone needs a little R and R.
3. Make Better Choices About Spending Money
When the economy is good, you know how people who have more money than normal tend to spend it on “extras” they don’t necessarily need? Well in tough times, entrepreneurs using money on these “extras” stop allocating cash to them because they know it is not smart. Instead of just spending money for the sake of spending money, in tough times, entrepreneurs must carefully think about and analyze whether what they are spending their money on will generate a return that is worth the initial expense.
Why It’s Good: Shifting your focus on using your money that comes into the company more efficiently and effectively, and further focusing your attention on generating solid returns with the money you are spending, helps you come back to the main focus of owning and running a business…generating cash and making money on everything that you sell and provide your customers.
4. Experience Memorable but Simple Entertainment With Family
Do you remember those times where taking the family to the park with the dog, pulling out a board game, or hanging out with the kids in the house allowed you spend some “priceless” time with your family? Well in tough economies “entertaining your family on a budget” is something where you have to get creative. Trips to the park, or walks with the dog are some potential options to choose from when money is tight.
Why It’s Good: In tough economies because there is not much extra money laying around to spend on extravagant vacations, or expensive trips taking simple day trips with the family to places that don’t “cost” much is a good thing. Building those bonds between your family through inexpensive entertainment in these tough times keeps you closer together and helps you strengthen the bonds between all of you.
5. Forces You To Cut The “Fat” Out Of Your Life And Business
You know when you are spending money on something that feels like it is “extra” but you continually do it anyway because you know you will still have the cash next month to fund the same thing? Well in tough economies these types of expenses must go. Not only are they a “waste of money,” but I like to call them the “un-needed fat” in your life and business. Cut these faster than white on rice
Why It’s Good: By cutting the fat out of your life and your business, it allows you to improve your cash flow situation significantly, which then allows you to help better allocate funds to the correct locations in your life and business. All of this not only improves your bottom line, but also helps you survive from month to month easier.
6. Tough Economies Force You To Innovate
You know how the greatest human motivator is to avoid pain? Well in tough economies we all deal with cash flow and profitability issues. When accepting this reality you can do one of two things. You can either act as a victim blaming everything on the economy, or you can do everything you can in your power to figure out ways to improve your business or personal life as a whole. Because our biggest pain would be to “lose our business” or “lose our home” the tough times a recession brings forces us to take our business and mind to the next level.
Why It’s Good: You never know what may happen when you step back and think about how you can improve your business or personal life with lacking resources. You very well may come up with the next multi-million dollar idea that will turn your business or personal life around for years to come.
7. Spend More Time At Home Eating Home Cooked Meals
It is a fact in tough economies people don’t go out to eat as often because they are doing everything they can to conserve cash. This is the best opportunity to have more home cooked meals. Not only are they healthier for you, but further it allows you to build better bonds and relationships with family. When was the last time that you ate a home cooked meal with your significant other and children?
Why It’s Good: I am not psychologist, but I am sure that eating dinner with family is a good thing for your mind body and soul. By taking the time to interact with your family over a meal, it allows you to step away from the stress of the economy and hopefully re-energizes you to help you recognize why you are here in the first place.
Idea For Post Inspired By: @Supernova17
Written by Scott Bradley: @ScottBradley
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March 16th, 2009
This is a GREAT post. This economy forced me to reinvent myself and create a home business online. Now I am able to work at home for good and be in total control of my financial future. Without being downsized out of the economy, I am not sure this would have happened.
March 16th, 2009
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March 16th, 2009
When times are tough you really have to evaluate your spending and you get to see how much fat you had before. You take these observations into the good times and you can find a lot for savings and investing.
March 16th, 2009
What a great point of view! I agree with your post 100%! Another great way to monitor cash flow, make better choices about spending money, cut the “fat,” and to become innovative is to hire a Virtual Assistant to assist you with business. Finding one is pretty easy at sites like VAnetworking.com. Good luck to everyone in this recession – it will all work out in the end!
March 16th, 2009
Great set of points here. Have to say I have had some great results in recessions. Even when I was laid off – it gave me the impetus to find a whole new direction in life. Bottom line – the only constant is change. Economies go up & down, but there will always be people making money – and you get to decide whether or not you will be one of those people. Very exciting!
March 16th, 2009
@Gary B- Yep it truly is the impetus for new direction. We all just need to make sure the positive changes stick!
@Nickey – I agree with virtual assistants… actually I agree with anyone bringing on contractors and consultants. You pay for productivity only.
@FFB – Investing! This may be the time!!!
- Mike
March 16th, 2009
[...] 7 Reasons Why The Recession Is Good For You. [...]
March 16th, 2009
Mike,
I really like this post, because you take an opposite, and much more helpful, look at what’s GOOD about the “pain” that a recession causes – instead of just complaining about the pain.
The fact is that most of us need a little pain and trouble to get us to do the things we should’ve been doing in the first place. I know I do!
Not that we shouldn’t do anything to try and make things better, but to really get the most out of this “season”, we need to let this recession make US better.
Thanks for the reminder.
@scottaughtmon
March 16th, 2009
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March 16th, 2009
I heartily agree with your assessment. We are going to come out on the side stronger, better, smarter!
@23Kazoos
March 16th, 2009
Tough times give rise to innovations too, i agree.
March 17th, 2009
This is a very insightful and positive spin on the situation we’re currently in. I hope it’s OK to link this on my blog so my readers can see what you have to say…? Let me know!
http://www.simonebrewer.blogspot.com
March 17th, 2009
Thanks for the post. Your points are spot on. The recession forces individuals to conserve on money, but more importantly tap into their creativity. Tapping into creativity allows for better business and ideas. Another point is that the economy will eventually turn around, and this offers great opportunity for businesses to capitalize.
I had not before considered the home cooked meals reason. Interesting and makes total sense. Keep up the great work.
March 17th, 2009
Recession is healthy for your business. It helps you stop and think of new ways to run your business more efficiently. As a web designer, I have come to really appreciate what I do to help people, be it online or offline.
Recession made alot of people think about starting their own business online. Without the recession, they would probably be working for someone else for the rest of their lives.
I have assisted people start their own online businesses and also help other unsuccessful businesses get more traffic to their websites through search engine optimization (SEO) techniques as well.
If you are thinking of starting your own business, start now and learn as you go. You will thank me that you did!
– Daniel Chege
March 18th, 2009
Good points. The best point is it forces innovation!! This is what get stuck in the rat race. Now innovating is what is going to get this economy & our country back on track. The innovators are the younger generation so much love to you.
March 18th, 2009
OK. I was doing all those things already. So now what?!
March 18th, 2009
@N Matti – OK… so tell me what you have done. How did you innovate? What have been the results?
March 18th, 2009
I started my HB before the economy tanked and so glad I did now I have the extra money to offset the lack of ‘promotions and raises’ they will be given out at work. Feel sorry for all those that rely on Corporate to take “care” of them.
It’s Not to Late come on board and get started today!
Great Article Mike!
Paul
March 19th, 2009
@Everyone – listen to @Paul Sorgi – it’s not too late to start!!!!!
- Mike
March 19th, 2009
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March 19th, 2009
[...] are posts titled “How Has Our Worsening Economy Effected Gen Y” and “7 Reasons Why the Economy is Good for You” Note to Liz: This is the research I did. I promise, not serious [...]
March 19th, 2009
[...] week I wrote an article for The Toilet Paper Entrepreneur on the 7 Reasons Why The Recession Is Good For You [...]
March 20th, 2009
This is just a great post for small business owners and entrepreneurs that have been worrying too much about the recession. I think one must first have a positive mindset to get themselves and their business through a hard time like this. Again, if you cannot take it, stop reading or watching CNBC.
March 23rd, 2009
[...] The Toilet Paper Entrepreneur : Could the recession be good for you?
April 1st, 2009
[...] Have you tried everything and still haven’t found that job? Rome wasn’t built in a day and your career won’t be either. It takes time and effort so work on it everyday and you will find a job. In the mean time, stay positive and focus on why the recession is good for you. [...]
April 1st, 2009
This is great article and found it very interesting. We referenced it in our newest blog. Check it out and please tell us what you think.
Finding a Job in a Recession
April 1st, 2009
Great article! When I was in college and $ was tight, I remember asking myself “What did Mom do?” My Mom was a Depression era child and she continued to always live frugally and prudently. I applied a lot of what I remembered in my every day life and I still do. It made me realize later on with my children that it was important to allow them to see us struggle. If they did not see me learn how to adapt, how were they going to make it through tough times themselves?
~Lynn~
April 8th, 2009
Fabulous points listed here! I have said this over & over and we have all seen it as history repeats itself. I also found this was the absolute PERFECT time to launch my own company (much to the dismay & criticisms of the naysayers). Companies still have ideas & dreams to implement. They still need services and they still have money to spend, especially if they can purchase a completed task or project or rent my brain – even if only for a little while!
April 8th, 2009
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April 10th, 2009
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April 23rd, 2009
[...] April 23, 2009 in Change, attitude | Tags: failures, Learn, Mike Michalowicz, mistakes, recession, stewardly, Toilet Paper Entrepreneur http://www.toiletpaperentrepreneur.com/blog/7-reasons-why-the-recession-is-good-for-you [...]
July 30th, 2009
I completely agree with you. Every TV chanel highlight bad news instead of trying to raise a mood of everybody. They act on base of profit – not looking to our hearts. It distroies mind of people and take control of us and impose “right” vision of world.
September 10th, 2010
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