Economic depression is the worst phase in a nation’s economic history. While many dread this phase, governments cover the facts to project an economy that is doing fine.
Although it is debatable when a country is in depression, your agenda should be how to survive and thrive. Five things you should do are:
Keep your job
This is not the time to “play kite” with your job and hope to go straight into another one. Getting a job is no longer a work down the road.
Companies are cutting costs and would be skeptical about why you are leaving your present employment.
Do you know that people with jobs during a recession are inside the castle, and those out of work are marooned in a harsh wilderness? If you can, it is better to hold on to what you have or pick up a job.
Earn extra income
As money is in short supply during a depression, an extra income from two, three or four channels would do much good. Explore online freelance opportunities, part-time jobs, passive income sources, etc.
Even if it is small, don’t be discouraged by the amount you earn through these means. It adds to sometime in these blue times.
Reign over your finances
You can’t spend money anyhow. With the economic nosedive, you do not need the government to declare an emergency on the economy before you start reviewing your finances.
When you increase efforts to make more money, you must not neglect the other aspects of conserving what you have.
Hedge your cash
You may have heard finance experts say cash is a dangerous thing to hold. This is even truer during a depression.
Cash is king but not in a depressed economy.
Cash is a worthless paper that can be turned into tissue-paper at the change of a switch. Observing the movement of exchange rates will prove this beyond any doubt.
This is the time to convert your cash into hard assets. In any event, find a way to turn your cash into objects that can return an amount higher than the rate of inflation, or better still some income. For instance, invest in transportation business or food retailing venture.
Anything that acts as a way of protecting your capital from inflation while bringing in cash flow is what you should search out because in the event of inflation, your cash savings will be shredded.
Always stay positive
The truth about depression is that even in this period, someone somewhere is getting very rich. The situation cannot be worse than what humans have seen and survived.
In this period, it is the tails that suffer most. You just have to be at your best, with a smile on your face, and hope to survive.
Lastly, do not concern yourself with all the statistics about how bad the situation is getting; rather be on top of your game.