This title is sure to startle people who follow the ups and downs of the economy with care and perception. "Economic disruption," they might say. "Whaaat? It is my distinct impression that things economic are improving, slowly but surely. Am I wrong?"
No, you're right. Things ARE improving, the signs are unmistakable:
Item: Online 2010 Christmas sales rose 15% this holiday season from October 31 to December 23. Online retailers took in $36.5 billion during this period, compared to $31.5 billion the same period a year ago. (Note: apparel sales lead the way with $7.3 billion in sales, up 25.7 percent from a year ago.)
Item: Weekly unemployment applications of around 425,00 signal modest job growth. Such applications peaked at 651,000 in March, 2009.
Item: Companies increased their orders for long- lasting manufactured products by the sharpest increase in eight months, the Department of Commerce reported before Christmas, 2010. Demand rose for computers, appliances, and heavy machinery... with overall expected 2011 growth at 3.5 percent to 4 percent, up from 2.8 percent in 2010. Andante ma non troppo.
The rich are out and about buying things meretricious de rigueur for the country club set.
As retailers to the rich can unhappily confirm, wealthy shoppers, with their penchant for acquiring gaudy and overpriced items the rest of the world gets by quite happily without, were in short supply during the recession. This Christmas season of 2010 was very different. Mere bagatelles such as luxury automobiles and eye-popping ice were snapped up with alacrity -- and no buyer's remorse.
Said Michael J. Silverstein, a senior partner at the Boston Consulting Group in Chicago. "Many households with incomes above $100,000 don't believe the sky is falling anymore. And when they don't believe the sky is falling anymore, they want things." Amen.
For instance, some national chains and independent merchants expect double-digit increases in jewelry sales for 2010, a dramatic turn-around from the painful 40 percent drops the hardest hit jewelers experienced since 2008.
So, if things are getting better bit by bit, why is this article about the next great economic disruption?
Because, quite frankly, the ease and abundance of good times are like a drug obliterating the painful lessons and memories of bad times... which all contributes to creating the next, inevitable bad times. Instead of losing the lessons of the still clear and painful past, we need to make every effort to remember them.... while preparing for the next great economic disruption for which we must be better prepared than the one from which we're emerging from now.
The great English romantic poet Lord Byron can assist us. One day his lordship received a message from his demanding inamorata Lady Caroline Lamb to "remember" her. Tired to death of her incessant impositions, he sent her this message of unmistakable clarity:
"Remember thee! remember thee! Till Lethe quench life's burning stream. Remorse and shame shall cling to thee, And haunt thee like a feverish dream!
Lord Byron indeed would remember and rearrange matters accordingly ... and so must we all. After all, we all know that such disruptions occur at predictable intervals for which we must be ready.
Here are the preparatory steps to follow starting TODAY!
1) Start a "rainy day" fund. Build this fund by regular monthly additions until it represents at least 6 months of total home expenses and not a cent less. Building this fund in good times takes exceptional determination, not least because in such times you want to "make up" for the things you went without during the recession. At all times, therefore, you must remind yourself that the next bad times are on the way... and that you are determined to be ready for them. Save then as if your life depends upon it... for it does.
2) Survey all expenses. If you think you did so during the bad times, think again. Now you know how many of these things you can comfortably do without. Root them out now... and put the savings in the "rainy day" account. Turning current expenses into income-producing capital is a crucial part of how you'll get comfortably through the next bad times.
3) Review the damage the bad times made. Did you, for instance, borrow against an IRA account or life insurance policy? If so, you must replace these funds by regular monthly payments, not least because such borrowings are likely to have tax and high interest payment implications. These need to be taken care of ASAP.
4) Start your trek ahead with a clear understanding, with a precise, realistic appraisal of where you are today. Many people at this point in the economic cycle are deeply depressed by what they have lost. This is a mistake. Instead of fretting over what is gone from your asset balance, instead review what you have and consider just how you will improve your net worth.
Still more recommendations
5) If you are self-employed, as many people reading this article are, always make the maximum allowable contributions into your retirement account. Treat these as payments, as you would any invoice. And always pay these retirement payments first, before other bills.
6) Make the maximum charitable donations that you can. Your charitable contributions should begin in January of the new year... and not in December. You should set a dollar donation objective for the year (in conjunction, of course, with your accountant.) Start working towards it as the new year dawns and not as it exits.
7) Remove yourself from what I call the "squandering classes." Review each and every expenditure... not just for yourself but for any children still at home and old enough to have jobs. All have a responsibility to think first, determine whether this expense is in fact warranted, and reduce or go without whenever possible.
8) "Batten down the hatches" for 1 month. As a test of your system and habits, live one month in the good times as if it were one month in the bad. Cut expenses accordingly and see how easy (or difficult) your life would be in recessionary times. Such a drill should yield many good ideas as well as clarity on your spending habits.
Death, taxes, bad economic times
When I was growing up people said there were 2 great inevitabilities of life: death and taxes. However, there is in fact at least 1 more: bad economic times. Count on it. They will recur in your life over and over again.
Will you be ready for them?
You certainly will be if you treat them as the certainties they are and prepare accordingly, along the lines of this article. Doing so, when they arrive you will have nothing to fear, and that places you amongst the very smartest and best prepared, the ones destined to ride out the next great economic storm in comfort and with quiet satisfaction.
About The Author
Harvard-educated Dr. Jeffrey Lant is CEO of Worldprofit, Inc., where small and home-based businesses learn how to profit online.
Attend Dr. Lant's live webcast TODAY and receive 50,000 free guaranteed visitors to the website of your choice!
Dr. Lant is also the author of 18 best-selling business books.
Republished with author's permission by Chris Ludlam
http://EarnAtHomeExperts.com
Check out Blog Cash -> http://www.EarnAtHomeExperts.com/?rd=iv57vZM2
Tuesday, 4 January 2011
Don't make New Year's resolutions for yourself... make them for others. It's easier, more fun, less trouble.
It's the time of the year for the obligatory New Year's resolutions. You know, what I mean:
I plan to go on a diet and become chic and svelte by Valentine's Day.
I will go to the gym every other day, so help me Hannah. Muscles and enticing curves, or bust.
I will eschew the delights of eating one sugar-soaked Little Debbie after another.
I will... but you get the idea.
There is something abhorrent about admitting that you are imperfect. I don't like it at all.
New Year's resolutions imply that you have somehow fallen beneath the high standard of perfection, that there is something not quite right about you, a nagging something that needs instant attention.
But what could that be?
Like you, I look in the mirror of a morning and, despite advancing age, I see nothing but the spitting image of one who is, indeed, the fairest of them all. It affronts me to think otherwise.
Thus, while wishing to do my bit to uphold the traditions of Auld Lang Syne and making resolutions, I find it hard to do so... as I have nothing to improve and everything to enjoy.
Hence this modest idea: give up resolution making for yourself... and focus your full attention upon the others, lamentable, imperfect, with a pressing need for overhauls small and large.
Draw up a list of persons known to you with glaring, jarring imperfections.
Do not stint. Remember, you are performing a useful act, a noble act, and act of kindness and empathy. As such, let yourself go... think of your aging peers and their shocking habits... of your relatives who have outlived the excuse of "puppy fat."
Think of your loud, too boisterous, ear-splitting friends... and the motor-mouths whose decided opinions on everything under the sun are, perhaps, de trop.
Think of the always-late delivery boy and those with too many unattended felines in a confined space and the olfactory discomfort thereby occurring.
Think, I say, think of prevaricating politicians... and those with nookie on their minds and an acute inability to contain it. Look around you and weigh in with a will...for you have many resolutions to craft and far too little time in which to offer them. Timing is everything, after all, and New Year's resolutions in March seem, well, tardy. Act now.
Now write the New Year's resolutions -- for others.
This part could be troublesome and demands your full attention and craft. Resolutions must be simple, straightforward, honest and at least potentially do-able. Thus, calling your insufficiently loved and abundantly padded brother-in-law fat just won't do. Try this instead:
New Year's resolution of brother-in-law Bob:
To lose 15 pounds by month's end.
And then your signature and the date.
Keeping your resolutions short, sweet, and to the point is de rigueur.
Mail the resolution... email the resolution. Only ensure that your kind thought for their betterment and perfection reaches them early in January.
Imagine how grateful, how pleased the recipient will be when he of pronounced embonpoint receives this missive and its kind and thoughtful message becomes apparent.
Send your New Year's resolutions even to those near and dear who share your abode and are bosom buddies and dear companions on your earthly journey.
The temptation, even for those expert and experienced in providing life enhancing New Year's resolutions for others, will be to personally deliver, message upon hallmarked silver salver, your resolutions to the people near at hand, spouse, children, impecunious sons in law, etc. You will think of their profoundly grateful responses, you will think of the affection and love in their eyes. You will hear with delight words so lavish and abject that even that practised purveyor of the obsequious Uriah Heep would be put to shame. No, you do not want to miss a moment.
But you must.
For your recipient will need a moment or two to compose himself and, no doubt, let fall the grateful tear, that you should care so much and have gone to so much bother on their behalf. Allow them a moment of reflection in privacy, as they think how grateful, how very grateful, they are to have such a one as you in their (otherwise imperfect) life.
Savor this moment, glass of grog at hand for you have done the very best of deeds. Sing under your breath this little-remembered chorus from Robert Burns' immortal annual anthem of maudlin sentimentality, Auld Lang Syne:
"We two have run about the slopes, and picked the daisies fine ; But we've wandered many a weary foot, since auld lang syne."
And now, gratitude, indeed.
As I was finishing up this practical report, there was a knock at the door... then the telephone rang... then I noticed a decided up tick in my email. I was not surprised... I was expecting such a deluge. After all, I had contacted many with a hearty abundance of resolutions, necessary, specific, in depth, all resoundingly honest to a fault. Now, no doubt, the expected responses, the epistles of gratitude and fulsome thanks were at hand.
Ou la la!
Imagine my surprise upon reading the first of these messages:
New Year's Resolution of Dr. Jeffrey Lant...:
signed
your loving sister
Then the one signed by my (concerned) brother, my (worried) father, one jointly signed by my (still affectionate) niece and nephew, my (who-else-could-tell-you?) best friend, my (long suffering) partners... even my (silent-until-now) driver and his wife.. .and all the very many others.
It was jolting to be sure to learn that so many felt so strongly there was so much of me to enhance and correct. But these messages, profoundly honest, stimulated the only New Year's resolution I shall make this year: to love them all, warts and all, and be profoundly glad I have them in my life.
Happy New Year, 2011!
About The Author
Harvard-educated Dr. Jeffrey Lant is CEO of Worldprofit, Inc., where small and home-based businesses learn how to profit online.
Attend Dr. Lant's live webcast TODAY and receive 50,000 free guaranteed visitors to the website of your choice!
Dr. Lant is also the author of 18 best-selling books.
Republished with author's permission by Chris Ludlam
http://EarnAtHomeExperts.com
Check out Blog Cash -> http://www.EarnAtHomeExperts.com/?rd=iv57vZM2
I plan to go on a diet and become chic and svelte by Valentine's Day.
I will go to the gym every other day, so help me Hannah. Muscles and enticing curves, or bust.
I will eschew the delights of eating one sugar-soaked Little Debbie after another.
I will... but you get the idea.
There is something abhorrent about admitting that you are imperfect. I don't like it at all.
New Year's resolutions imply that you have somehow fallen beneath the high standard of perfection, that there is something not quite right about you, a nagging something that needs instant attention.
But what could that be?
Like you, I look in the mirror of a morning and, despite advancing age, I see nothing but the spitting image of one who is, indeed, the fairest of them all. It affronts me to think otherwise.
Thus, while wishing to do my bit to uphold the traditions of Auld Lang Syne and making resolutions, I find it hard to do so... as I have nothing to improve and everything to enjoy.
Hence this modest idea: give up resolution making for yourself... and focus your full attention upon the others, lamentable, imperfect, with a pressing need for overhauls small and large.
Draw up a list of persons known to you with glaring, jarring imperfections.
Do not stint. Remember, you are performing a useful act, a noble act, and act of kindness and empathy. As such, let yourself go... think of your aging peers and their shocking habits... of your relatives who have outlived the excuse of "puppy fat."
Think of your loud, too boisterous, ear-splitting friends... and the motor-mouths whose decided opinions on everything under the sun are, perhaps, de trop.
Think of the always-late delivery boy and those with too many unattended felines in a confined space and the olfactory discomfort thereby occurring.
Think, I say, think of prevaricating politicians... and those with nookie on their minds and an acute inability to contain it. Look around you and weigh in with a will...for you have many resolutions to craft and far too little time in which to offer them. Timing is everything, after all, and New Year's resolutions in March seem, well, tardy. Act now.
Now write the New Year's resolutions -- for others.
This part could be troublesome and demands your full attention and craft. Resolutions must be simple, straightforward, honest and at least potentially do-able. Thus, calling your insufficiently loved and abundantly padded brother-in-law fat just won't do. Try this instead:
New Year's resolution of brother-in-law Bob:
To lose 15 pounds by month's end.
And then your signature and the date.
Keeping your resolutions short, sweet, and to the point is de rigueur.
Mail the resolution... email the resolution. Only ensure that your kind thought for their betterment and perfection reaches them early in January.
Imagine how grateful, how pleased the recipient will be when he of pronounced embonpoint receives this missive and its kind and thoughtful message becomes apparent.
Send your New Year's resolutions even to those near and dear who share your abode and are bosom buddies and dear companions on your earthly journey.
The temptation, even for those expert and experienced in providing life enhancing New Year's resolutions for others, will be to personally deliver, message upon hallmarked silver salver, your resolutions to the people near at hand, spouse, children, impecunious sons in law, etc. You will think of their profoundly grateful responses, you will think of the affection and love in their eyes. You will hear with delight words so lavish and abject that even that practised purveyor of the obsequious Uriah Heep would be put to shame. No, you do not want to miss a moment.
But you must.
For your recipient will need a moment or two to compose himself and, no doubt, let fall the grateful tear, that you should care so much and have gone to so much bother on their behalf. Allow them a moment of reflection in privacy, as they think how grateful, how very grateful, they are to have such a one as you in their (otherwise imperfect) life.
Savor this moment, glass of grog at hand for you have done the very best of deeds. Sing under your breath this little-remembered chorus from Robert Burns' immortal annual anthem of maudlin sentimentality, Auld Lang Syne:
"We two have run about the slopes, and picked the daisies fine ; But we've wandered many a weary foot, since auld lang syne."
And now, gratitude, indeed.
As I was finishing up this practical report, there was a knock at the door... then the telephone rang... then I noticed a decided up tick in my email. I was not surprised... I was expecting such a deluge. After all, I had contacted many with a hearty abundance of resolutions, necessary, specific, in depth, all resoundingly honest to a fault. Now, no doubt, the expected responses, the epistles of gratitude and fulsome thanks were at hand.
Ou la la!
Imagine my surprise upon reading the first of these messages:
New Year's Resolution of Dr. Jeffrey Lant...:
signed
your loving sister
Then the one signed by my (concerned) brother, my (worried) father, one jointly signed by my (still affectionate) niece and nephew, my (who-else-could-tell-you?) best friend, my (long suffering) partners... even my (silent-until-now) driver and his wife.. .and all the very many others.
It was jolting to be sure to learn that so many felt so strongly there was so much of me to enhance and correct. But these messages, profoundly honest, stimulated the only New Year's resolution I shall make this year: to love them all, warts and all, and be profoundly glad I have them in my life.
Happy New Year, 2011!
About The Author
Harvard-educated Dr. Jeffrey Lant is CEO of Worldprofit, Inc., where small and home-based businesses learn how to profit online.
Attend Dr. Lant's live webcast TODAY and receive 50,000 free guaranteed visitors to the website of your choice!
Dr. Lant is also the author of 18 best-selling books.
Republished with author's permission by Chris Ludlam
http://EarnAtHomeExperts.com
Check out Blog Cash -> http://www.EarnAtHomeExperts.com/?rd=iv57vZM2
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