How to Build Wealth in a Tough Economy
A lot has been going on in Nigeria lately. Our economy has been gradually crashing and economists suggest that there will be a recession at this rate. The question on people’s mind would be ‘How then will we survive?’ When the economy was on a reasonable pedestal, graduates could barely secure a job. And now the economy has crashed, what will be the fate of the Nation?
Hopeless as it may seem, economic recessions according to Warren Buffet are when investors find the best opportunities. If you are wondering how, then take a look at these ways as suggested by financial experts on Wise Break and Early Torise. Proven and tested means of creating wealth in a distressed economy.
- Invest in areas where no one is.
Following the crowd always proved unproductive. Out of fear of the unknown, investors find it easy settling in comfort zones and by doing so end up losing out on genuine lucrative opportunities that would yield great returns. Recessions are the best times for investors to focus on assets that other investors won’t venture into.
- Build Another Income Stream
That the unemployment rate has skyrocketed should be an opportunity to start up new businesses. According to Wise Break, a bad economy is the perfect time to start an online business for example. The truth is, what separates a wealthy man from a non-wealthy one is an ‘Idea’. There are many other needs there, get thinking! Temporary agencies, consultants, catering,…..you name it! These businesses may require very little for start-up and can even be started in the comfort of your home. So look out for what the needs are in your locality and get right on it.
- Invest in products we all need, no matter what!
No matter how bad the economy drops, people will still have to eat, drink, sleep, stay healthy, communicate etc. Products and services that will help people get their daily basic needs well and cheaply are considered to be stagflation-proof.
- Invest in Luxury Products
Tough times never stops the affluent folks from spending good money on fashion, jewellery, antiques, art, travel, high-end estates, exotic cars, yachts, private jets and more. The business of selling luxury products and services according to Clayton Makepeace will always remain very profitable as long as the rich still remain rich.
- Cut down on expenses!
Individuals, businesses, organisations, Nations etc. over time have become very extravagant in their expenses. Oftentimes, they tend to spend too much on things they can do without. Things that yield no returns. Things that eventually become a liability. An economic downtime is the best time to cut costs and become lean in your spending. People will call you stingy, but the yields will be far greater in the end. When you waste nothing and utilise every resource to its maximum advantage, it begins to impact the bottom-line.
Whether it is an economic high time or downtime, according to the Financial Mentor, the times are all good if you just know how to navigate through the rubbles to find the good that is already in the land. For in the midst of a depressed economy lies numerous opportunities waiting to be discovered if you know just where to look. Look beyond the tough times and find your gold.
