How do you ‘deal’ with today’s economy?

This expert article was contributed by:
By Brandale Randolph, Stock Broker
brandale2221@gmail.com

Giving the 300 lb. gorilla in the back of the room a banana....Despite the news our politicians and other economists have told you, we are not out of the woods yet. As a matter of a fact we have a long way to go before you can start spending money like it’s 2006. Why can’t we relax? The answer is right under our noses…Unemployment and underemployment.

For the purposes of data collecting, unemployment only counts the number of Americans who have actually filed for their unemployment benefits; there are still massive numbers that are not collecting unemployment as well. Therefore, the number of people actively seeking employment is far greater than what has been documented. We all have friends and family that we know who haven't given up just yet and may have started their own business or something of the sort but unless they have filed for unemployment, they are not included in the unemployment figures.

From recent CNN story,

“Unemployment Hits 10.2%”

There are also a hidden group of Americans known as the underemployed. It is extremely difficult to collect data on the vast number people who have found alternate employment but are earning as much as they were in previous years. According to several reports this number is close to 15% of all working aged Americans. So when we combine the unemployed with the underemployed, roughly 30% are being directly affected by this economic downtrend and sadly that percentage may continue to grow.

These two groups are very important because they are the ‘300 lb gorillas’ that are becoming more volatile as Wall Street cheers it's 10,000 point mark. Let’s ask three important questions to get to the heart of the problem?

1) Who is really left to buy brand new cars, TVs, retail apparel or disposable goods?

A majority of the Americans are worried that on any given day they may lose their primary source of income. Therefore, compared to last year and the year before, the American household spends less money on everything. Downsizing and saving has become a way of life. Companies are charging just a bit more for everything because people are buying much less. Therefore, the next free spending environment won't occur until we go back to being secure with our jobs.

2) Where can growth come from without creating new jobs to replace the 5 million jobs lost within the real estate sector?
A majority of the most recent boom in our economy is from real estate. With unemployment so high, a majority of potential buyers have been wiped out and are afraid to upgrade. Many people worked as real estate brokers, agents, loan processors, construction workers and the like and they are now un or underemployed. With the state of the economy, banks are also refusing to approve as many home loans as they did before. Real estate will return but the old notion of a home significantly appreciating each year has been destroyed.

3) Will starting my own business guarantee my success or prosperity?
The creation of small businesses by the un and underemployed has not driven a boom in our economy. In this environment the small business failure rate has quadrupled. This is not because of lack of planning or experience but plain and simply, there is not a lot of money circulating in our economy.

Despite these bleak times, there is great news and a solution for those reading this article, there are three critical things you can do to protect yourself from the dangers of this economy and unstable economic environment.

1) Network like you mean it!
Begin or continue to network with other people, whether you have job or not. Networking is important, so that if the prospect of unemployment lurks, you have created a network of possibilities to finding gainful employment again. People love to work with people they know outside of work. So go be networky!

2) Do what you love to do and brag about it.
Simple gestures such as baking for others, fixing a neighbors busted water heater or writing a blog article for a friend may spawn a new source of income down the line. Keep your options open and share your interests and expertise with others around you. Build your brand as an individual, you never know what opportunities will be available down the line.

3) Improve yourself!
Just looking at yourself and smiling and doing few good deeds for other will feed your soul food that it needs to carry you through the bad times. Keep your head up and do positive things with your time. There is never any time to lose. Use any time you have to improve your professional and social skills. Stay in tune with your industry so you don’t miss a beat when employment picks up again.

4) Save Money
Yes, you have to live and tomorrow is not promised but wouldn’t it be better to have a little something extra just in case. Not in case of a sale but in case of emergencies. Having a little cushion gives you a little peace of mind. For those that have a saving of some kind ask them and they will tell you, just knowing that the bills will be covered if things go wrong makes a world of difference. Save what you can, whether it be $10 or $100/week. You'll be happily surprised to see small dollar amounts adding up and available when you need them!

Even though unemployment is has become a 300 lb. gorilla looming over everyone’s backs, scaring our economy and many of us, don’t be shy, don’t be afraid to give it a banana (and face it head on).