How to Survive, Even Thrive, in Difficult Economic Times

Surviving in difficult economic times implies a number of economic conditions and scenarios requiring financial innovation. Whether the objectives are to recover lost income or investment worth, discover more lucrative financial opportunities, or obtain new ways to create money, navigating fiscal turbulence can be done. In terms of financial planning, a number of strategies can be used to deal with periods of troubled economics.

Maximize investments

To maximize investments, a branched investment strategy may be utilized. In such a strategy a set of goals to maximize opportunity while simultaneously increasing net worth and lowering risk can be employed. During periods of declining equity growth, high inflation and bear market conditions, a traditional strategy of financial instruments with moderate yields and low risk hedge against adverse market deterioration. Alternatively, combining inflation re-optimization techniques with income and high yield bond investments may yield a net investment gain higher than a strictly conventional investment methodology.

Regain realized losses

Regaining realized losses requires capital investment to be re-earned either by reacquisition of income, capitalization of low and/or negative income months, or reinvestment into more lucrative financial opportunities. In the case of unrealized property devaluation, a hold strategy that allows time for a market turnaround may lead to a recapturing of property value. Since obtaining mortgage and home equity credit becomes more difficult in tight credit conditions, renting for a realized annuity of mortgage value recapture may bridge the financial gap of lowered property investment value by increasing monthly savings.

Discover new ways to make money

Discovering new ways to make money engages the bottom line agenda of personal financial goals. Depending on one's capital positioning, online private lending, engaging individual skills and know how into a workable income, and actively exploring new business ventures hold opportunity for entrepreneurial minds. Retaining licensed use of innovative technology applications, or discovering a wellspring of clients in need of a service are just two possibilities business ventures may capitalize upon.

In cases where one is without work or resources to invest of any kind, individuals must rely on and seek out other financial opportunities and/or methods. Such options may be a necessity that includes non-profit, charity and/or government assistance. If an individual has minimal asset value, qualification for financing of retraining, subsidized housing, daily living supplementation and/or temporary financial assistance until employment is found may be attainable.

Design and implement a budget

It often goes without saying a budget is important to surviving in difficult financial times. When money is tight, financial adjustments need to be made in order to pay bills, save, or simply survive. Budgets take income and may re-allocate that income to expenditures, savings, investments, retirement etc.

Sometimes budgets only consist of expenditures in which case other financial planning steps may be necessary. Budgets can be created and implemented on paper, on a spreadsheet, with financial software or any way that effectively works and carries out the objective of the budget i.e. organizing money for optimal credit, savings, spending etc.

Surviving an economic down time may be easier with the knowledge that it can be cyclical and occasionally secular in nature. In the former case, bearish financial conditions and sour economic times are relatively short lived. In the latter case, economic turbulence may last longer requiring a longer-term financial strategy.

Either way, large developed economies in particular, pay close attention to the management of national finances which can ameliorate troubled times. By making use of available resources, skills, techniques and options, surviving a difficult financial time may not be a walk in the park, but might not be quite as bad as it could be either.