Economy getting worse. Consumer-related companies are having more sales than ever to promote consumer spendings. People become attracted to the cheap stuff and start to buy. Some buy without considering whether they need it, or if they can afford it. In the end, the amount they need to pay for their credit cards becomes shockingly large. Some will fail to pay. Banks end up in big trouble since many people cannot pay their bills and loans.

At the end of the day, the consumer-related companies earn the most. Those people who cannot pay will have to return their homes/cars to the banks, and some even forced to declare bankrupt. And when people cannot pay, the banks will not gain any benefits. They will start losing money if this continues. True, they can take back those cars and real estates, and resell them but they can only resell them at a much lower price. And reselling does not mean there will surely be a buyer. Those cars and real estates might stay with the banks for quite a while due to the poor economy.

In my opinion, I think all these started from the point when consumers (us) start to spend money like water and buy things which they cannot afford, and even borrow loans which they cannot pay (and the banks approve loans without thinking twice. Few months ago, the banks were competing fiercely with each other to get more people to apply for house and car loans. When competition is that fierce, the banks will become more linear when it comes to approving those loans).

So how serious is this?

Frankly speaking, I have a feeling that our country is actually undergoing such a situation, albeit in an early phase. True, encouraging people to spend more will certainly boost the economy since it improves consumer spending. But it does not take away the fact that people ARE getting poorer with the high inflation rate (and companies ARE doing badly due to the bad economy. Do bear in mind that not all companies are involved in consumer business..that’s why there is a possibility of job cuts).

I think perhaps it’s time for people to start being frugal and be prepared. And I do hope that Malaysia will not end up like US, though my gut feel is telling me our country is indeed heading towards that direction (maybe not as bad).

Last but not least, good luck to us all.

I’ve said this before and I will say it again – the recession is already here. Things are already becoming more difficult each passing day even though the fuel price is seeing a slight decrease and things are supposed to be cheaper now. Companies are dying, one by one, and some without warning. People are being retrenched, and they have no choice but to go out and find job – thus making the current job market more competitive than ever before.

Furthermore, some people’s financial situation might be hit pretty hard (like yours truly) and might run out of money including those already in retirement. Try reading the news or listening to the radio and you will realize one thing – many singers/celebrities are making a come back to their respective industries. You can see there are more and more concerts being organized by stars of the past.

So, we have those retired people coming out of their retirement since they’re running out of money and we have the unfortunate people who got retrenched. What’s next? We also have those who think they are underpaid, and feel like changing their current job for another job with better pay. Or some are just the typical job-hoppers who want a better pay every few months.

Seriously, from the looks of it, the job market is indeed going to be rather competitive.

So, for now, stop spending too much money on unnecessary stuff. Start saving up and put all the money into your war chest. It’s never too late to do so. And never stop to improve yourselves so that you can be a good candidate to the interviewers. Good luck!

I should be honest with you all. I’m one of the people who got badly hit by the recession due to stock market. A lot of people have been telling me not to play if I cannot afford to lose. And I must say that I’m ready to lose, but it doesn’t hide the fact that I am still quite poor now. I miscalculated during the last purchase and I’ve lost quite a lot (some of you should know how much I’ve lost). I don’t have much savings left (I told you I’ve miscalculated). =_= However, all those are paper losses. I will need to wait for 1 year or more in order for the market to rebound.

For now, I will have to resort to few ways in order to survive this incoming recession.

Stop eating outside if possible

Try to buy some vegetables and stuff to cook at home. I know it takes a lot of efforts and time but it does save significantly more. It’s healthier too. Avoid eating “good” food that might cost you a bomb. I used to eat “good” food quite often in the past (that explains why I have high cholesterol) and it’s not cheap at all. Maybe this proves to be a turning point for me to save money and the cut down on my cholesterol.

Stop buying unnecessary things

Always remember about the assets versus liabilities argument. We all have a lot of WANTs and sometimes, these WANTs might take up a more important role in our heart than our NEEDs. That cool looking gadget, or that beautiful dress. Oh wait, there are sales and things are cheap! Should buy while we can! No. We should not buy if we cannot afford. Remember that cash is king now. Don’t be tempted to buy unncessary things because in the end, you will not know when you might need those money. Also do bear in mind that the job market can be quite unstable nowadays. Focus on the things you need, and also on assets which will appreciate, if possible. For example, it’s better to buy gold (commodity) now than to buy that shining looking diamond. And if there’s really something you really wanted to buy, seek cheaper options such as buying second hand items or discounted items (only if you really want them). Also, sell the things you don’t need on eBay or Lelong. That should help.

Save up

Try to save up to 10% of your monthly income (minimum). Minimize on unnecessary spending, as mentioned in the point above. The saving which you accumulate will be useful when things don’t go your way. You can also invest them in other places if you want to.

Try to earn some side income

I’m currently trying to earn some side income by doing extra works at home – writing reviews online, talking crap, etc. Some of my friends said the total amount I earn from these is not that significant if compared to the amount of efforts I’ve put into them. True, they’re not wrong but to me, every penny counts now. It’s better for me to earn some side income than to sit idling around. If I have something (WANTs) I really like, I will make sure I’ve earned enough before I can buy them.

Improve myself

Whenever I am free or at home, I will try to read more non-fiction books to improve myself and to motivate myself. I feel that these book teach me how to lead a more meaningful life. Also, I will read biographies of the people I respect such as Warren Buffett. I like to know what mistakes have they done and ensure that I will not repeat if I were to follow their footsteps. Also, I will try to improve my writing skills, my English and my technical skills (though this takes up quite a lot of time, I must admit). Who knows, maybe all these soft skills will prepare me to embrace the incoming recession.

Always have a backup plan

What if I’m being terminated by my company and become one of the many jobless people out there? I need to ensure that at that time, I will be good enough to join other companies in order not to remain jobless. What if my side income works don’t work out? I will need to see if there are any other opportunities. What if my stock investment doesn’t recover? All these things have to put into consideration and always have few backup plans before the real thing actually hits you hard on the face.

All these are based on my own personal opinions. I’m not sure about you all. But there’s one thing which you all should know, start to save more and keep your cash with you. Work harder to earn side income. And keep on improving yourselves. But once in a while, do remember to take a break.

Hope it helps.