Everything must be looked at froom a perspective of generating cash flow and safe return in investments. This is not the time to take uncalculated risks. If you put all your money into investments that are not generating returns, soon all your cash will be used to keep these investments going and nothing will be coming back to you. Worse still, some of these investments going and nothing will be coming back to you. Worse still some of these investments might even lose more value, because they have no bottomed out yet, this will create more pressure in your financial state.
There are good investments you can take advantage of. For example, if there is a dinner or a low cost eatery that is extremely poplar, or a business that helps companies reduce cost dramatically, yet there are looking for some additional cash flow, these could be good business investments. Other good investments include low cost apartement with good transport infrastructure nearby such as trains. Rental yields in such locations do not reduce that much during recession periods even though the cost of purcashing such a unit does.
Csh a king
Remember that cash is king, use your strong negotiating position with and influx of cash to gain bargains. Do not be afraid to shop around and to wait. Work at your own pace, do your research and do not be rushed into making a decision by others, if you have a pile of cash you call the shots.
Think twice before setting up or buying business
Don’t be too uick to set up or buy into business. Business fundamentals are important at this point because oppurtuinites that looked good during a boom period period might not be so great during a rescession.
With cash flow being tight and spending reduced, business that are recession proof will be hard to come by, luxury products and goods that are not deemed as necessities.
When making decisions at this time a very important question to ask is will people still buy this product or use this service during this recession period, when everyone is cutting down axpenses?
If you are looking at setting up companies, you cannot do so with a mindset that the companies, you cannot do so with a mindset that the economy will turn around, but whether the venture can be profitable in the current economic climate. You must be realistic with the possibility that you might have to weather the storm for a long period of time and make decisions accordingly.