Updated: September 27, 2014
I remember around four years ago, a friend of mine asked me what’s a good investment to put his money in.
Without hesitation, I told him that he should invest long-term in the stock market.
He gave me a surprised look and asked, “Isn’t the stock market falling down these past few months?”
“Yes!” I answered. “Prices are going down and it’s a buyer’s market, that’s why you should invest in it.”
Fortunately, he took my advice and started buying Philippine blue chip stocks for his portfolio a few months after. And he continued doing so regularly for almost two years.
And today, if he decides to sell all his shares, he would get twice the money he invested. Yes, he was able to double his money in just four years in the stock market (and that’s without doing any “real work”).
That’s the valuable lesson I’d like you to realize right now – that there are always opportunities around, regardless if “the market” is up or down.
And that’s the belief I share with our guest blogger for today, who advises his fellow Americans – to stop waiting for the recovery and seize opportunities today.
Let’s read what he has to say:
The biggest financial mistake I see people making today is assuming that there is some magical switch to the economy that controls whether or not they acquire gainful employment, make some money, or make the right business or investment move.
So often these days you hear the attitude, “Well, the economy’s a mess right now so there’s no point in looking for a job.”
Or: “Things will turn around soon — I’ll just wait until then.”
This is often said with an oddly distant smile.
While it’s good to remain positive even in tough economic conditions, thinking that you can coast through the situation without making some sacrifices and efforts is just not realistic.
Whether you’re a small business owner, an entrepreneurial investor, or an unemployed college graduate looking to get your feet wet, the best way to deal with tough sledding is to grab the reins and control your own course.
This means stop waiting for bailouts, stop waiting for the perfect stock, stop waiting for unemployment checks and stop waiting for the magical switch.
The economy will recover — in fact, there are indications that recovery has already begun — but it won’t happen over night.
Are you just going to sit on your hands and wait until then?
If you’re a small business owner, double down and cater to tough economic conditions with shrewd marketing and discounts.
If you’re an investor, take a second look at your growth and value funds and see if they still make sense to you.
If you’re an unemployed graduate, take a job you’re overqualified for. Trust me, you’re not the first person who’s had to slum it for a bit.
The best reaction is action; the best defense against financial problems is proactive measures. If this sounds like a pep talk it’s because it is.
Our nation went through a dark time recently, and it’s still pretty dark. But that doesn’t mean it’s night time and we can’t go outside and conduct business as usual.
Instead of hiding from the fire, you’ve got to face it head on. How do you think one gets the glint in his eye?
This guest post is contributed by Pip Macfibo, a forex trader from Atlanta, Georgia.
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