Savings Money in Tough Times – Part 2

February 15th, 2009

• Consider a part-time job or contract projects for extra money.
• Sell things you don’t need. Everyone has something they don’t need that can be converted into cash.
• Consider earning extra money from your hobbies and don’t give up your day job.
• Clip coupons and look for sales, but avoid buying things you really don’t need.
• If you need to rent a car try to select an in town agency versus at the airport. You will find a big difference in the rates.
• Some stock market advice is to stick with high quality corporate bonds to preserve your equity and avoid risk.

I’m sure you can think of some ways to conserve and save that we haven’t listed. In my recent blog post on Strategies for Recession Survival we offered some thoughts on how businesses can deal with the recession. No one has escaped the recession and how you response and deal with these challenges will define your future. There were many points that individuals can use to manage their finances and lives through these tough times. Of all the points, I think the most critical is to continuously plan and set objectives.

Setting objectives in the face of uncertainty is not an easy task. I was thinking about this and recalled a technique from one of my training programs that could be helpful. Fighter pilots use a technique which is called the OODA Loop developed by John Boyd. This is a concept used when things are happening fast and you need to react accordingly. It is a process of observe, orient, decide, and act. It strikes me that this sort of approach is what is needed to survive the uncertainties of these difficult times. The OODA Loop could make the difference between success and failure.