Winning In An Uncertain Economy

Recession is headed our way according to all of the economic experts and pundits, and with that kind of talk I'm afraid they may be correct. After all, what does "Economic Recession" really mean? What is the definition anyway? It sure sounds scary when you hear everyone saying it. Especially when you don't really know how to define or determine it. I wanted to take some time today to give everyone a historical definition of recession, explain how they happen, and then give some hope, and the assurance that you CAN thrive, even when everyone is telling you to retreat and not spend a dime on anything.

First of all let's tackle the question, "What is an economic recession?" The historical definition of recession is a significant decline in economic activity across the economy, generally lasting at least two quarters. This is normally visible in production, a slow down in wage growth, and overall reduction in consumer spending and the employment rate. Often times experts have said you never really know you had a recession until after the fact, but this is not necessarily true. The three-month moving average of the unemployment rate increasing by .5% in relation to it's low in the previous 12 months has historically been the most accurate indicator of a recession. Simplified though, a recession is the receding of money from the economic flow in society. In other words money does not move around as much, and is instead held in one place, like a bank for example. Banks stop the flow of money by increasing interest rates, or actually pulling out of lending all together.

High interest rates is one of the most common ways that banks stop the flow of money, forcing borrowers in many cases to stop borrowing for what they would normally have no problem getting the money for from a bank. Furthermore; banks will sometimes actually stop lending even to highly qualified borrowers because they've decided to "Limit their risk", or in other words they say "No more money for you!" This, combined with the media sounding off about how we are going into a recession actually creates the uncertainty in the marketplace, and all of the sudden consumers stop all spending and go into panic conservation mode. That is how you engineer a recession, and ultimately if the course is continued a depression.

This is obviously not good for anyone, especially when coupled with high inflation, which is roughly 12% over the last twenty four months. Not a very convenient truth but it's reality nonetheless. The real question for us normal everyday citizens is, "What does it mean for me, and how can I avoid the pain that is being engineered in our economy? Well in my view there are three things you can do to not suffer economically no matter what the environment.

First things first, you have to get your head right. Your thinking is what will make you or break you in any economy, but especially in a tough one. You have to understand that there is no shortage of money on planet earth. In fact Market Watch said in 2021 that the amount of millionaires in the world would jump by 40% between 2021 and 2026. Just during the pandemic, there was one new Billionaire- Yes with a B, created every 30 hours. You can guess which industry they were in, but that's beside the point. The point is, the money was in the economy regardless of the fact the government was picking the winners and losers for nearly two years in some states.

The second thing you need to know is that it is your own discipline that will determine your effectiveness in a tough market. You have to look at everything around you as an opportunity, not a problem. Even if you loose your job, there is always someone hiring somewhere. Maybe you need to pick up and move to find that job. Maybe you need to realize that you really aren't too good for that job you don't want to take. Bottom line is if you take responsibility for your own well-being and that of your families, you won't be sitting around blaming others for your situation. Instead you will be creating a way forward, blazing a trail perhaps that no one else had the guts to blaze. Surely the latter is the more effective action.

Thirdly, you need to figure out how to invest money, not spend money. Recently I invested in becoming a Grant Cardone 10X Business Coach and licensee. Furthermore I invested in starting my own company, and committing to help a bunch of business owners and sales people around the country to avoid the pain. Even if you think you don't have any money, I bet you can invest something. Even time should be invested, not spent. An investment by definition, is something that you pay towards, that has a reasonable chance of giving you more back than you paid into it. Like I said, sometimes it's just time that you need to invest. I invested lot's of time over the last nine years in learning from a guy named Grant Cardone . When I first got into sales, I had no Sales Process, and no framework or steps to follow to ensure my success. The lessons I learned from Grants' free seminars on YouTube were invaluable. I completely changed my life by listening to and implementing the strategies I learned during those years. Now nine years later, I've created my own Sales Process and Training Packages, and am building my own legacy helping others create the mindset and habits that I have.

If anyone out there is wondering how they too can change their future now, or has a Sales Team that needs to get geared up for the economic opportunity of a lifetime, you can always find me here on LinkedIn, or go to Mammothtrainingsolutions.com and book a free strategy call with me, Nick Willey.

We can all thrive during the years ahead, and I hope everyone reading this takes the three steps to financial freedom I've outlined here;

Get your mind right

Discipline yourself and stop blaming

Invest in something that will pay you back

And if you'd like a coach to help you along the way, give me a shout!

Nick Willey

Mammoth Training Solutions

[email protected]

(253) 844-8067