One thing you’ll notice whenever there’s a recession is the amount of negativity surrounding it. This is to be expected: jobs are lost, people’s futures are thrown into doubt and many other devastating events can take place.
But there are good things that result from the bad stuff as well, and we should focus on these just as much as the negative things. In fact, focusing on the good points can help us to make it through these tough times more easily than we would otherwise.
So how many positive things can you think of?
Good Things That Come Out Of An Economic Recession
1. People save more money. As soon as times become hard, people start tightening their belts and begin to put money away for the future whenever they can. Living for tomorrow suddenly becomes far more important than living for today and putting everything on your credit card to worry about later. If you want to get higher returns for your savings, consider putting your money in a top online savings account.
2. People tend to focus more on eliminating debt. Debt can be crippling at the best of times, but it is not a good thing to have when you are in the middle of a recession. This is why one of the first things many people do is to eliminate as much debt as they can. Here are more of my thoughts on how to get out of debt.
3. People find ways to cut costs. The higher your cost of living is, the less spare cash you’ll have to play with each month. I’m from California, and this point hits close to home. Also, it’s surprising how much you can cut down on your outgo if you know how to do it. As cost-cutting becomes a more crucial exercise for you, you’ll be surprised about how much easier and automatic it is to become a saver. Here’s more on how to budget and maybe even save 40% of your income.
4. People become more risk averse. Risk can be a good thing, but it can also get you into trouble. Anyone who has ever run up huge debts on credit cards will know this to be true. When a recession comes along however, most people rein in their spending and take fewer risks. This means that they will typically lose less cash on frivolous things and bad investments.
5. People become more productive. Proactive thinking becomes more prevalent when times get hard. When things are easy and straightforward, no one worries about planning for tomorrow. But when times get tougher and our backs are pushed against the wall, we come out fighting and find new ways to cope with our changing situation. In the long run, this can be enormously beneficial.
6. People develop more skills. More skills can mean that you are in a better position to grab a new job if it comes along. They can also give you the opportunity to try something completely different. Recent reports have shown that there are lots more people setting up businesses for themselves since the recent recession. It shows how effective some people can be when they are forced into a tough spot. They come out fighting and show off more skills than they realized they had before.
Of course, the economy needs us to spend if it is to remain buoyant. But in the end, we have to take care of our own situation as best we can. Taking fewer risks and ensuring that we can fend for ourselves, and perhaps even improving ourselves in some strong and positive ways can be good consequences of an economic recession. So even a downturn can be a good thing after all.