How can You Thrive in the Current Economic Climate?

Great thinkers and savvy business leaders have always known no matter what the headlines say – no matter what doom and gloom you might be hearing – there are always people who profit and do well financially because they think differently. When everyone else is zigging they zag. They keep up their gratitude journal and their prosperity and abundance thinking. They turn off the news and they get very, very smart about their business and their money.

I’m clearly not an economist or a politician – but let’s face it – the average American has over $6,000 in credit card debt (and this statistic is from two years ago before gas went up to $4 a gallon) it’s time to face the fact that most people are living beyond their means. I won’t even touch the subject of mortgages. We can’t do anything about what’s happening to banks and investment houses. We can point fingers all day long about those lying, cheating so-and-sos and you’re probably right. But that does nothing to empower you. That does nothing to help you. You can either blame or learn.

It’s time to fess up. Let’s just suffice it to say that millions of Americans have been living beyond their means because we are seriously into short-term gratification. We are so seduced by the promises of love and sexiness and being cool that come from advertising and marketing that are promised to us for buying the right products. Many of us don’t even think before we plunk down that credit card for a purchase of a few hundred dollars. We gotta have it – whether its the latest technology, the coolest clothes, the fancy restaurant meals and on and on.

Cut back on spending and make as much money as you possibly can in your business. Get efficient and effective at making more money. The idea is when you do that in concert with more careful spending, you’ll actually have money left over at the end of the month – instead of the other way around. With that money there are three things you want to do with it:

1. Pay down debt
2. Invest in your business
3. Save for your future

Let’s talk about spending less for a minute – we have an idea about what the American way of life is supposed to be – I’ve shifted a little bit the last decade because I’m married to a guy who’s from India. It’s a country with a very different mindset about money. People in the middle class and higher from India save about 20-25 percent of what they make. In America we are at negative 3 percent savings. We actually do things with our money and our decisions that aren’t at all in our best interests long-term because those kneejerk decisions are in alignment with what we think of as the American way of life.

A few lessons I’ve learned from Ernie:
* Cut to the bone automatic expenses that come due every month. Your phone plan, utilities, monthly service fees. If you can wear a sweater and cozy socks while at home and turn the thermostat down a few degrees during the cold months you’ll save money. Look at service fees – revisit them. Do you really use the service? Look at small things you buy almost daily. I hate to admit it – but even I’ve cut back on Starbucks. I only go there when I know I’m meeting someone or I’m going to sit, relax, read a little – really savor it.

* Don’t buy anything new unless you’re willing to get rid of something old. Clothing, books, gadgets, little cute things around the house. If you look at the closets of a much older home they’re only about four feet wide – and that’s in the master bedroom. Why? People didn’t have huge wardrobes back in the day. Now we all want our own walk in closet to store it all.

* Don’t get caught without money for emergencies – you almost always pay more if you have to put a car repair or plumbing repair or whatever on a credit card. If you can pay cash – you often can pay less. Financial experts recommend having enough in savings to live on for six months. Imagine how it would feel to have a financial cushion like that?

* When you spend less you can pay down your debt and you’ll gradually end up with more each month. After all the interest on your credit cards is probably far more than what you get putting the extra money in the bank – and if it’s readily available in the bank – you’ll probably spend it.

Let’s talk about food for starters: last time you enjoyed a steak out for dinner or at home – how many ounces did you consume? At restaurants a Petite Filet Mignon is 6-8 ounces even though we’ve been told we should eat no more than 3-4 ounces of meat per meal. That slab of Porterhouse or Ribeye is probably a lot more. How ’bout next time you eat meat cut down your portion size (making you healthier) and have the leftovers the next day for lunch sliced thin on top of a yummy salad? And hey, it wouldn’t kill any of us to eat a vegetarian meal now and then, would it? Doesn’t have to be all the time – but if two dinners a week you go veggie you’ll get healthier and save on food.

How many mornings a week do you eat eggs? My husband Ernie loves eggs. If you have a bowl of oatmeal (not those expensive sugar-laden cereals) with fruit on top you’ll save money and probably cut your cholesterol levels.

What about your clothes closet? I admit I love clothes. But right now my closet is full. Everything fits and it’s fairly current. Don’t buy new clothes unless: you’re replacing something that’s worn out or doesn’t fit. You need it for business – a new suit – fine. If it’s a very special gift to yourself like your birthday – treat yourself. Buy only what you love – nothing that will hang in your closet unworn. Buy classic styles not fads. Buy what fits – not what you hope you can wear when you lose ten pounds. Shop sales. Shop ebay – I get great bargains on beautiful new stuff. I just got a $550 coat new with tags on ebay for $59.95

Often we buy clothes, cosmetics, etc. because we’re bored – we want to feel attractive, pretty and current. But what really needs shoring up is our self-confidence. Go for a brisk walk, exercise. Sell something in your business. Re-read that positive thinking book that was so great – but you never did anything with it. Learn to love yourself as you are and you start dealing with the root cause of your discontent. That’s more long-lasting than covering it up with new clothes or cosmetics you don’t truly need and that don’t make you feel better for more than a few minutes.

Books and learning are another area where we can save. Find a good used bookstore. Trade and share books and CDs with your friends. Use your local library. If you’re part of a business networking group consider starting a lending library. This is a great time for learning and ramping up your business skills but for goodness sakes it’s not the time to spend on expensive 3-day seminars and boot camps that promise you the moon and deliver little. I’ve found it’s much less expensive to pay for one or two hours of an experts time to figure out how to solve a challenge and get information and answers customized to you and your business. Much better than spending big money to fly to a seminar and 90 percent of what you hear is info you’ll never use and the other 10 percent you might use – but it’s not tailored to your business. A waste of time and money. And if you need help with marketing – I know a great expert when it comes to helping women, home-based business owners. *smile*

Now is also the time to stop bumbling around in your business trying to figure out how to get things done. Particularly when it comes to marketing and selling. If you’ve got challenges in this area – your very expensive learning curve is costing you dearly. Every week or month you spend making substandard income in your business as you’re trying to figure out how to market and sell – is like income down the drain. Investing in learning to do it right is always a good idea no matter what the economy is doing.

You’re not a more noble person for struggling and striving. Isn’t it about time for you to arrive? For many home-based business owners this difference in decreased cash flow can come to thousands of dollars a month from what you used to make. Just because you’re enjoying working at home doesn’t mean you have to suffer for it financially. Get help fast. You will end up making far more than you spend in increased sales for you business and ultimately for you.

Tweak your business for the times if necessary. Stop selling what people don’t really need or can buy for less – or, if you really offer superior products – figure out the best ways to communicate that fact and sell them to people who can well afford them. Sell products and services packaged in a way that either appeals to people without much to spare or appeals to the wealthy – who always have money.

Here’s an example: Sunday night Ernie and I wanted a quick bite for dinner and went to Panda-Panda. Basically fast food Chinese. People were lined up to the door. Dinner for two: about $14 Just three nights before )Thursday) a couple took us out to dinner at a fancy-schmancy steakhouse at the Wynn – the most expensive hotel-casino here in Las Vegas. The tab and tip for dinner for four people: $450 Yikes! But go to a middle of the road place for dinner right now – there’s no wait for tables and half of them are empty. You could almost bowl in the aisles.

Savor and truly enjoy everything you DO have. This is about gratitude. But it’s also about really appreciating in the present moment each bite of food (you’ll eat less and save money). Don’t gobble in front of the TV. Health experts say we should savor and chew every bite at least 25-30 times. Savor. You’ll consume less.

Be grateful for the clothes you already own. Stop letting boredom or low feelings rule your spending choices. If they really are awful – replace ‘em.

Appreciate the cell phone and gadgets you own – for the great job they do. Besides – it’s when we are truly grateful and we appreciate what we already have – that it’s easier to attract more.

All the best,

Denise Michaels
Author, “Testosterone-Free Marketing”

PS: Visit me online at http://www.MentoringwithDenise.com