SURVIVING AND PERHAPS THRIVING DURING RECESSIONS

SURVIVING AND PERHAPS THRIVING DURING RECESSIONS

by Frank Givens

If you haven’t heard about the economy, the recession, the stock market, the stimulus plan then you must be hiding under a rock.

Most financial experts agree that we haven’t hit the bottom of this and it will likely take years for our economy to be back to pre-recession levels.

I have seen some organizations that have not only survived but done well during the last two recessions. There are several common characteristics shared by these companies before, during and after the recession.

So what did they do? They didn’t get sick and go to bed; they didn’t roll over and die. They did more than “make do” and they continued to succeed during a recession.

They all had a strong strategic vision and knew who they were before, during and after the crisis. Before it began they controlled costs and established a rainy day fund which they then used during the crisis. They continued to advertise, reduced costs without long-term damage to business and they figured out ways of growing new revenue.

These same basic ideas can be applied to the family. Communicate with your family—be honest about your financial situation. If you don’t have a rainy day fund, start one. Savings accounts are free and usually require just a small deposit to activate.

Let your teenagers get a job to pay for their own spending money. If you’re eating out every night learn how to cook. There’s a reason that the “greatest generation” grew up during the Great Depression.

When my daughters were little one of their favorite books to have read aloud was the Laura Ingles Wilder series. As Pa used say, “It’s better to be safe than sorry.” He was talking about not falling in a well, but the same is true for your long-term and short-term financial goals.

Today, yes, the economy is bad. History tells us that eventually the economy will turn around. Hopefully, the young people witnessing this today will make better choices about spending and saving in the future because of what has happened.

Frank Givens, CPA, is a registered representative with and securities are offered through LPL Financial, Member FINRA/SIPC. Frank can be reached at frank.givens@lpl.com. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.