Monday 20 May 2024

Why We Shouldn’t Be Afraid Of Economic Crisis?

Change isn’t all that popular, but we often need to change if we want to improve our financial situation. Many of us prefer to stay in a condition with predictable future. This could include an employment that can provide us with enough security. However, we are still in the whims of the economy and our life isn’t totally predictable. In reality, successful investors shouldn’t only adapt to change; they also need to exploit it. When changes happen, many of us would just sit on the sidelines and feel sorry for ourselves. On the other hand, successful people will observe the situation and they look for new opportunities created by the change. In fact, there are people who thrive in a changing, difficult time. Given the immense amount of negative news that bombards us each day, it could be quite difficult for us to do this. The gap between the average and the rich is widening quickly and this is caused by our inability to spot opportunities. If we want to succeed, we should be able to weather the drastic economic storms.

If we seek to learn anything from economic crisis, we know that life always provides us with obstacles and challenges to overcome. There are a few big differences between average person and successful investors. Successful people are also confronted with setbacks and obstacles, but they see them as opportunities to learn from and to grow. However, average people typically see them as the source of personal failures and insurmountable problems. When facing challenges, successful people always try to persist through them. Any economic downturn is just part of the great cycle and it doesn’t mean the end of the economy itself.

Unfortunately, the media loves to play on our fears and they feed us with biased or slanted view that things will go worse and worse. This is the same thing like hearing and reading the doom and gloom predictions in the 1960’s, when the world are bracing for the nuclear war. It didn’t happen and an economic crisis doesn’t mean the end of our business career, if we are prepared for them. Let’s face it, the financial world is made of people and this is a good enough reason that a long-term stability is nearly impossible. Although we are hearing stories about countries failing to repay their debts, companies go bankrupt and banks go broke; often we will be largely unaffected.

There’s no denying that things could go worse before they get better. However, we shouldn’t be fearful of the economic crisis if we are properly prepared. We should firmly believe and understand that progresses come for change. In fact, creation follows the destruction, including the Big Bang itself! Economic crisis is part of the cycle and it is a way of our economy renew itself and clean itself up from the bad things and excesses of the past. We should be prepared for the next stage, which is likely the recovery phase. When the economy recovers and picks up speed, we should be among the first people who take advantage of it.