In this fast changing economy, you need to understand and create a flexible plan that protects your downside gives you maximum staying power.
Massive Economic Pain = Structural Change in the world economy
Structural Economic Change is being reflected by:
Increasing oil and gas prices
Declining home prices
Lose of jobs
Competition for strategic metals
Shift in economic power
Depreciation of the dollar
Sell off of US assets to foreigners
Global Warming
In this fast changing economy, you need to understand and create a flexible plan that protects your downside gives you maximum staying power and takes into account the following:
1. Paper money is rapidly depreciating.
2. Inflation is higher than stated.
3. Changes in US oil policies will take many years to implement.
4. Real Estate home prices will adjust downward to the long-term trend life of home price compared to rent ratios.
5. Stock market returns will not compensate for inflation and taxes.
6. Proposed economic plans by politicians will require an increase in tax rates.
7. There will be a desire to tax the rich as a deflection from the real issues of oil dependency, overspending and exporting jobs.
8. Increased gas prices will affect all areas of life and change business and lifestyle patterns.
How to Create Wealth in Uncertain Times:
1. Use leverage in every area of your business.
2. Exchange your talents, knowledge and skills for equity.
3. Use networking and collaboration to test every aspect of your business before you launch.
4. Wherever possible do not take on any long-term commitments such as office space or loans.
5. Review every expense as if it were too high and had to be lowered to survive.
6. Partner with groups that can spread your products and services quickly in exchange for a share of the revenue.
7. Review all potential exposure to your assets especially legally.
8. Assess all commitments and prioritize those that will give you the greatest rate of return for the least input.
9. Build flexibility into your business so that almost all costs are variable and can be reduced quickly if your investment is not giving you the best rate of return.
10. Be bold.
11. Do not fear to take calculated risks.
12. Be prepared to cut your losses and admit you’ve made a mistake.
13. Learn quickly from the mistakes and immediately try again.
14. Keep pushing forward.
15. Constantly build resources so you can take advantage of the many opportunities that will be occurring as the marketplace changes rapidly.
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