Here are the three things you MUST do to “bite the recession” without losing financial ground whether you are male or female, employer or employee:

1.     Reduce costs

Before you can reduce your expenditures you must know what those expenditures are. Business owners, small or large, usually have spreadsheets and programs within which they keep this data updated on a regular basis. If you do not, or if you are an individual who doesn’t have such an accounting or lives without a budget, you must account for every dollar you spend. You must have a balance sheet. Only then can you step back and get a clear picture of where you are financially. Can you spend less on supplies, whether they be raw materials provided by vendors or the raw materials from the grocery store? Do you really need that new software, computer system or big-screen TV? Are you getting the best deals on services such as telephone, internet or insurance? Many suppliers and providers have lowered their prices during this recession to attract more new business, but haven’t been aggressive in letting their current customers in on the deals. Start reviewing all your costs and make sure you are getting the best deals possible.

2.     Increase income

Sound obvious? Absurd? Of course it sounds that way. But if you haven’t examined methods for augmenting your income, then you’re just standing still and letting the recession bite you in the butt. If you are a business owner, then you must look at ways to create new products &/or services to compliment those you already provide. As an individual or employee, you need to see if there are ways to increase your productive hours, promote yourself into a better position by providing more value to your employer, or add a ‘stream of income’ to the income you’re already making. Brainstorm with your family, friends, employer/employees, managers, teachers, coaches, etc. This is the time to discuss your ideas with those who can provide critical but positive feedback.

3.     Adjust your attitude

Only you can do this. Regardless of the outside forces acting on you, you can choose your response to them. Be slightly slower to react to your perceptions of negative forces so you can take the time to think of one or more positive ways to affect your results.

Even though you may think that you maintain a positive attitude, most of us react suddenly to certain emotional triggers, rather than crafting a response that will create the most effective, positive result. Always try to respond, rather than react. Don’t let other people or circumstances push your buttons. You’ll find this will give you much more time to use productively than the ‘cooling off’ time you may have needed before, especially during these stressful times.

Certainly these strategies are very general, but you need to have an understanding of the ‘big picture’ before you work on specific items to help you survive the recession, and even prosper. Without this understanding, you may miss the potential effects, both positive and negative, that making small changes will have on your bottom line. We’d like to hear what you have to say about this post and YOUR bottom line. Please Reply/Comment in the space below. Thanks…