What behaviors are changing as a result of the economy ? What is the stimulus package and how will it affect your life? I had interviewed Guy Kawasaki for the Network Solutions' Blog in March last year and his advice was if you get up in the morning and your business is going normally you should not worry about what the economists and the newspapers are telling you. This may be a period for businesses to excel at what they do.
Here are the signs:
- House values have fallen
- Companies are down sizing
- Stock market is down
- Banks are going bankrupt
- Cars are selling less
What are the pundit's advising :
- Live within your salary
- Reduce unnecessary expenses
- Save 15 to 20% of your salary or rainy day
What are the opportunities:
- Do the remodeling/painting now: If you have already saved for the home remodeling or painting project. This is a good time since the construction industry is feeling the pain this is a good time to find someone to do it at a competitive price. This combined with the fact that this is winter.
- Buy the LCD TV you had put off: Retail store sales are down and LCD TV prices are falling.
- Thinking about a new car - good bargains now. Buy a 3 year old used car with around 35k miles preferably a brand that is rated very well for the least maintenance (Toyota) or is cheaper to drive.
- I am sure there are a hundred things I can add to this list.
Now I have not seen the Stimulus plan , and I am quite overwhelmed by the number of zeros in the figure. Now if we already have a budget deficit , what will this do to the deficit. Since the Economy is global can we say that any kick start to a economy by the US government will spread the economic engine worldwide? Only time will tell. The selling point for this stimulus plan is that it is better to do something than be quiet and let things take care of themselves. In a few months and hopefully not years the dollars infused into the market will make their way to the businesses in some form and we can all go back to the heady days of 2002-2006. the lesson for me at least is to live within means and in fact try to save 25% of your salary for a rainy day.
US Public Debt : http://en.wikipedia.org/wiki/United_States_public_debt
Who is buying our Debt: MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES