How to Make Lots of Money During a Recession

How to Make Lots of Money During a Recession(rəˈseSH(ə)n)

By Steve Pavlina

A recession is possibly the best time to launch a new business or to expand(ikˈspand) an existing(igˈzistiNG) one. It’s also a great time to get ahead(əˈhed) in your career. I know this sounds counter-intuitive(ˌkoun(t)ərinˈt(y)o͞oədiv), so let me ‘splain.

First, the media goes nuts(nəts) during a recession. They turn a little bit of negativity into a mountain(ˈmount(ə)n) of pessimism(ˈpesəˌmizəm). This makes a lot of people financially paranoid(ˈparəˌnoid). People become socially conditioned to expect(ikˈspekt) the worst.

If you buy into this social hysteria(həˈstirēə, həˈsterēə), you become a victim(ˈviktəm) too.

But if you tune(t(y)o͞on) out such stupidity(st(y)o͞oˈpidədē) (not watching TV helps a lot) and maintain(mānˈtān) a grip on rational(ˈraSHnəl,ˈraSHənl) thought, you’ll see some amazing opportunities popping(päp) up everywhere you look.

During such times people get scared(ske(ə)rd) and start cutting back on expenses. They cut some of the fluff(fləf) from their lives. They stop buying so much stuff they don’t need.

This causes some businesses to do poorly(ˈpo͝orlē,ˈpôr-), especially businesses that don’t provide(prəˈvīd) stuff we really need. We can live without new credit(ˈkredət) cards and gas-guzzling(ˈɡəzəl) SUVs for a while. Those non-essentials(əˈsen(t)SHəl) can be put off.

We also become more sensitive(ˈsensədiv) to receiving genuine(ˈjenyo͞oən) value. When we spend money, we want to make sure we’re getting a fair(fe(ə)r) deal(dēl).

Consequently, businesses that provide genuine value can actually do better during a recession. More people will flock(fläk) to those businesses in tough times, while the fluff businesses will become more and more paranoid.

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https://www.stevepavlina.com/blog/2008/12/how-to-make-lots-of-money-during-a-recession/