Europe’s Money Troubles Mean Opportunity For You

Choosing to “beat feet” might cost you plenty next year.

Much of 2011 has been devoted to the emerging financial crisis embroiling Europe. Whether you’ve been following these events in detail or only have a passing knowledge of what is going on across the continent, you’re likely sensing that something will come to pass in 2012. Your feelings that it can’t possibly be good are correct. Then again, Europe’s financial woes mean that some people will ride the wave, even thrive.

How you navigate the European economic tsunami will depend largely on how you react to these and other challenges. You might ask, “How can you possibly see opportunity where others only see gloom and doom?” From my personal experience, that’s where.

Recent Experience

Allow me to share with you a story. In early 2008, before the economy nose-dived, there were signs that rocky days were just ahead. One client was so concerned with what was coming down that he warned me that he might have to pursue another approach to business when the worst eventually transpired. That meant I would likely lose his business or at least a big part of it.

Instead of panicking, this client and I discussed ways to ride out the storm, determining that by staying the course we would be okay. Not in perfect shape and certainly not unmolested by the events of those days, but the smarter for it. We rightly determined that others would overreact and pull back just as we continued our advance. Certainly strategies were overhauled and a new approach was taken.

Our approach was proven right — to this day my client is faring quite well. I’ve also managed to retain other clients by sharing a similar perspective on how to stay focused.

Looking Ahead

Undoubtably, Europe’s financial problems threaten to pull down economies across the world, perhaps making the most recent recession look comparatively mild. I’ve followed some of the possible scenarios and the forecasts are as follows: not good, quite bad and most definitely ugly. Were Sergio Leone still alive, I think he would be proud!

Yet, few of us can afford to wait on the sidelines as Europe and the rest of the world get their acts together. You have to make a living. You must eat. Your children need to be clothed and educated. In other words, much of the demands of today will continue. Why be reactive like everyone else? Why not take action?

Your Approach

Those action steps are not something I can outline for you. I don’t know you well enough. I can’t get into your mind to find out what your hopes and dreams are. Playing it too conservative will mean that you’ll lose out on opportunity. Taking a very liberal approach may prove to be a folly. You’ll have to find your balance and stick with it — making adjustments on the fly and hoping for the best. To stay on the sidelines, however, means you’ll lose.

On a personal note, I can tell you that I’m much more flexible to making change then I have been before. I cannot go into detail here, but I’m open to considering whatever possibilities are out there including taking a radical approach to how I do business.

Is it scary? Sometimes it is. My personal trust in God is what sees me through all of this. I can encourage you to do likewise, but I cannot make you do what you don’t want to do. In any event, I think whatever faith we have will be sorely tested in the coming months with some of our colleagues despairing of hope as the worst of the crisis unfolds. Where will you be in all of this?

Photo: Pedja Mi

Recession Or Not, Keep Your Savings On Track In 2009

For 2009, will you find yourself breaking into your savings or do you have a plan in place to save no matter how bad the economy tumbles?

Some of the talk on cable news lately has been down right gloomy. For sure, the federal government’s $700 billion bail out program has gripped the news these last few months of the year as has the realization that our country, even in the entire world, has slipped into a recession. Quite easily, we can pull back on our plans and think about writing off 2009, hoping that 2010 will bring sunnier days our way.

Life Goes On

I don’t know about you, but I can’t afford to put off some things for a full year, as life goes on. Certainly, as someone who is both a small business operator and a family man I’ve been reviewing expenses, cutting back on unnecessary expenditures, delaying business trips, and putting off a project or two, but there is one area where I won’t cut back on and that is our personal and business savings.

No, I’m not suddenly awash in cash, but I know that if I don’t continue to save, then I’ll end up having to pay more later. Saving money isn’t as painful for us as some people make it sound, but it does take discipline. Please read on for some tips on how you can save more money in 2009 without missing a beat:

Christmas Club — Few banks still offer this nifty savings vehicle, an excellent way to save holiday cash to buy what you need and want for the Christmas season. True, cutting back on gifts is one way to handle the holiday, but chances are you have an amount in mind that you want to have available each year. One terrific way to save is to have funds withdrawn automatically on a weekly or monthly basis from your checking account and depositing that money in a savings account. Save $5 to $20 or more weekly by transferring funds to an online account (easier to keep track of and pays higher interest). When the holiday season rolls around withdraw the full amount and start building up the account again for the next year.

Consolidate Communications — We still have a land telephone line, but it doesn’t cost us nearly as much as it did a few years ago when Bell Atlantic was our provider. Today, our cable company — Time Warner Cable — provides our phone service as well as television cable and internet connection. I need the upgraded plan for my work, but I still save at least $75 monthly which covers the cost of our cell phones.

Shop the Warehouses — In our area we have BJs, Costco, and Sam’s Club to provide warehouse savings for our family of four. Though we still visit the local supermarket for meats, milk, and other smaller items, our bulky paper products, snacks, condiments, juices, pet food, water and the like are all purchased at our local BJs. We allowed our membership to expire for a few months earlier this year, but when we signed up again we paid $45 for the membership which included two extra months free and a ten dollar off rebate on that day’s food purchases. Needless to say, we get our membership money back within two visits and continue to save all throughout the year.

Eating Out — We don’t eat out all that much, maybe two or three times per month, but when we do we eat well. Prix fixe (one price) is a favorite, but quality smorgasbord or cafeteria-style eating can be enjoyable too. In our area restaurants are always competing for diners, so specials are frequent and rarely require a coupon.  On occasion, we eat our big meal during the middle of the day as everyone knows that the lunch menu is priced lower than dinner while offering the same entrees.

Review Insurance — Our insurance policies come due in December and that is the time when I sit down to see if deductibles can be raised or other coverage options changed. Of course, you can save money by combining your homeowners and auto insurance, a move that is usually rewarded by insurance companies who appreciate your patronage. Consider switching providers too if you can get a better deal and better service. Likely, we pay more for our coverage, but we like our insurer so the little gecko won’t get our business any time soon!

Family Freebies — Do you live in a family friendly area? What I mean by that is do businesses, clubs, and local governments clamor to serve you? Where we live, families are big business but they are also the recipients of plenty of free and discounted events all throughout the year. We’ve learned that whenever a family event is being held, you go early. When prizes are being given away, you stand a better chance of winning something of value. BTW, you don’t have to be a “family” to reap the benefits — just learn to hang where families show up!

Vacation Planning — I’m not counting on regular gas being $1.79 next summer when we go ahead with a planned (and delayed) trip to see friends, family members, and to take in tourist spots. But, what I am counting on is big savings on wherever we go and wherever we stay. When I booked my trip to Los Angeles last month, I found hotel savings on Hotel.com and compared their best offers with Priceline, Travelocity and Expedia. All four had the same low rates, giving me the best deals for my three night stay. I’ll use these services again plus whip out my AAA or AARP (yes, I’m that age) to see which plan gives to us the best price. Of course, calling directly to the hotel can yield the best savings, so I’ll do that too.

Other Savings — We routinely save money by taking in the occasional movie matinee (my wife and I go when the kids are in school, therefore no babysitter fees) and we make good use of our local library. Our museums are free and we purchased an annual membership at a nearby children’s museum that our children like to visit. In addition, we bought the annual aquarium/zoo pass for our family which pays for itself in just three visits.

Giving Back to the Lord

Besides personal savings, one thing we won’t be doing this coming year is cutting back on our giving. As Christians, we trust that God will provide and we regularly return what we earn to the Lord via our local church, select Christians ministries and set aside some money to help out select secular non-profit organizations. This year, especially, many charitable groups will find it tough to make ends meet, therefore we want to do our part to help out in whatever way we are able to.

Yes, we’re still setting money aside for our retirement and our childrens’ college education in addition to remembering that the tax man will want his share. With a mind to save, we should be able to reach our goals in 2009 without cutting back to the bone. However, if additional cuts need to be made you can be certain that we’ll examine other areas to save and/or figure out ways to increase income.

Federal Hand Out? No Thanks!

And one more thing our family won’t be doing is waiting for the federal government to figure out how they will “help” us out. Resourceful people find a way to make things work out no matter how tough things are. Better days are ahead and we plan to ride over the speed bumps of life while maintaining our sanity and retaining our dignity. We’ll pray for our government, but mostly that they’d stay out of our way!

Have a happy holiday season to all. I hope these tips give you some ideas on how you can press forward in 2009; feel free to leave your tips or suggestions — I’m looking for fresh ideas!

Photo Credit: Steve Woods