Dealing With The Economy
While the economy might seem a little off topic for this blog, it certainly has relevence to making money online. The economy occurrs in various cycles, and it’s a lot eaiser to make money during certain cycles. When you hear about a bunch of layoffs, or you can anticipate a series of layoffs and downsizing before they happen, internet businesses will thrive. Not right away of course, but people that have had jobs for years start to realize that job security is the “old paradigm”. Whether they were layed off, or their friends were layed off, or family, neighbors, etc, they start to come to this “awakening”. What do many of them do? They seek jobs online.
A common theme in the internet marketing community is “dont sell the gold, sell the shovels”. This means that if there’s a hot trend, don’t compete with everyone trying to get the gold, just sell the shovles and get rich anyways. However, being prepared for the “next gold rush” has everything to do with the economy. If you can get a little business going offering opportunities o make money online, now is the best time. But for many it will take awhile, and they might be a little too late to be super competative with the rest of the field. However, as people start to make money, and eventually the rates get low, and the prices get low enough, people start buying houses. soon a rush of house buying takes prices up, and some people start to realize what a great opportunity it is to make money with real estate. So they start looking to buy houses. A housing boom is good for the economy, then people start building, and companies start growing. After this happens, more people consume, and oil goes up. At this point, stocks and the overall market starts to go up. Eventually people overbuild, buy too much on credit, and oil gets expensive. There might be different parts of the economy booming between there. As people overspend and credit catches up to them, eventually you have the fed trying to combat the lack of ability to spend by the consumer, and you have some people get in trouble financially. The businesses do as well, and then there’s a credit crunch. From there, businesses cut jobs, and the cycle repeats.
During these phases… Aside from investing your extra cash in silver, gold and oil… whichever is most undervalued during inflationary cycles, and investing in cash producing assets during deflation… You’re also going to want to market towards certain areas based on the cycles.
Right now, MLM businesses, and businesses that teach people how to make money online will generally be pretty successful. How to save money will be pretty successful. In the short term future, how to be a real estate broker, how to buy a house, how to fix a house, and how to garden and landscape, and those types of things will be valuable, as many renters will eventually look to buy houses,fix them up, live in them ,etc. Shortly after people will want to learn how to fix and flip houses, how to invest in real estate, and maybe how to grow their own businesses with more of a focus on “business” then “quick cash” since at this point, rather than looking to bail themselves out otf a jam, they’re looking to build for long term. From there, it’s a lot more wide open, and dependant upon what sort of new advancements, and what people are doing. This time you want to learn what the technological trend is, or any other trends. “How to GROW your business is also a pretty good topic. After that, you should focus on trading, and investing. When the economy is good people have money to spend on stuff, and they also want to buy physicial goods so you can look for those, but many of them want to really earn that cash and multiply it, and the stock market is usually a pretty common place that they look. Now when all of a sudden thingss get too hot and the market starts to cool down, “how to eliminate debt” and things like that are good for quite a long period of time. “how to save your business, and “how to make money in a down market through stocks” and that sort of thing. Even on the way down people are still looking for that dream way to make tons of money overnight despite their debt as well, and from then on the cycle starts over.
If you want to take the time to learn about the economic cycle, you might consider reading one of Jim Cramer’s books, and look at his chart on the back. One other thing to notice is, you have to get ahead of things and anticipate it, BEFORE it gets hot. The reason is, because you want to establish yourself as aan “expert” in the field BEFORE everyone starts looking for advice, so when they finally do, your competitors that know to “sell shovels” aren’t going to have the supplies to sell as many shovels as you do.
Not only do you personally have to prepare to allocate your funds, to save money, and to grow your wealth so you can put that money into your business, but you have to understand what other people will be doing, before they do it… The economy is actually pretty predictable over the long term, and you don’t need a chrystal ball to predict the future, you just need to know the overall trend that has always occured for the economy.
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