Saving and money management

Saving and money management

Thoughts to be mindful of in preparation for each cycle

Some preparations to concider include, but are not limited to the following

What to invest in and what to avoid

We must mindful of what to invest and what not. Investments with long periods before any return can be seen must be avoided. For example, any investment with a ten year return, during a seven year expected boom period should be avoided. We need to use common senese and not be taen up by marketing materials of investmnts with returns not happening within timelines that we have set.

Business ROI timeframe

Bussines must be started with specific time frame to capitalize. For example, if you have seven good years during a boom return on investment for the business within those seven years, and the return must be enough to tide you over  during  the reseccion period and get you throught it.

Long term and big investments

Things such as houses or cars any need to be deferred and capital utilized for investments with a shorter return during the boom period, or for investments that are safe and revenue spinning even during a recession.

Saving and money management

Lifestyle spending and other expenditures need to be cut down or readjusted to a reasonable level in preparation of a recession to come. This is because savings need to  be increased. The more you spend, the less you save and this is what gets you into trouble when a ressesion or depression hits.