When will you buy the pair of shoes that you have been thinking of for the past two years? When will you take your family out for dinner like you used to a year back? Is something stopping you from being financially free?
The whole world today is reeling under the threats of a devil called “Recession”. Where did this devil come from and how did it appear suddenly? What is Recession actually?
Recession, A man made devil:
Yes there has been a lot of over spending by us over several years. Yes we have saved less money and spent more while trying to fulfill our dreams and more necessarily, our wants. Let’s take a look back at the time when we were not suffering from the Recession syndrome and were over spending on our luxury. Luxury here means buying houses and property at exaggerated prices. A few years back, there was an overflow of buyers of property especially in the developed economies. This in turn sky rocketed the prices of real estate. It so happened that at a juncture, the prices went beyond the reach of the common man’s wallet. No doubt there was a considerable periodic increase in the thickness of pay slips too. However, the real estate prices still went out of reach. To create a balance, thus the real estate prices started to melt gradually again. This melt down had a reverse affect. People started talking about economic slow down. Media added some flavor to the recipe called “economic slow down” and gave it another term. Enter “Recession”. Recession is nothing else but a fear in one’s conscience. A self made economic and fiscal crisis. People heard this rumor of Major Economic slow down and started saving money for bad times. Media propelled the problem into a crisis. Result, people stopped spending money from their pockets even for their needs. Yes, here where the Recession actually came in. There was a stop of cash flow across the globe. It’s simple logic. If we don’t spend, the money will not roll from hand to hand, resulting in decrease in demand. Decline in demand causes decrease in sales. Less sales causes decrease in manufacturing. Lesser manufacturing means job cuts. Job cuts create more fear in the common man’s life. So, this is a vicious cycle which is deepening the Recession more and more. Over and above all, the announcements of stimulus packages by the governments of major economies increases the fear in the minds of the common man and convinces him that recession exists and its deep.
AVERSION OF RECESSION:
There is only one way to come out of this vicious cycle of recession. Let’s lead a normal life, without fear. Let’s not hold back our needs and keep the money blocked. Unless we spend on necessary things, we will not be able to inject cash in to the reeling market. It’s like getting into a Reverse Osmosis process. This of course does not mean that we start clubbing every weekend and go out for expensive dinner every Wednesday. It means to stabilize our lifestyle to avert the destruction caused by the man made devil called “Recession”.
So, go out and buy that pair of shoes that you needed for the past couple of years. Take you family out for dinner at least once a month. But at the same time, keep your finances calculated.
The whole world today is reeling under the threats of a devil called “Recession”. Where did this devil come from and how did it appear suddenly? What is Recession actually?
Recession, A man made devil:
Yes there has been a lot of over spending by us over several years. Yes we have saved less money and spent more while trying to fulfill our dreams and more necessarily, our wants. Let’s take a look back at the time when we were not suffering from the Recession syndrome and were over spending on our luxury. Luxury here means buying houses and property at exaggerated prices. A few years back, there was an overflow of buyers of property especially in the developed economies. This in turn sky rocketed the prices of real estate. It so happened that at a juncture, the prices went beyond the reach of the common man’s wallet. No doubt there was a considerable periodic increase in the thickness of pay slips too. However, the real estate prices still went out of reach. To create a balance, thus the real estate prices started to melt gradually again. This melt down had a reverse affect. People started talking about economic slow down. Media added some flavor to the recipe called “economic slow down” and gave it another term. Enter “Recession”. Recession is nothing else but a fear in one’s conscience. A self made economic and fiscal crisis. People heard this rumor of Major Economic slow down and started saving money for bad times. Media propelled the problem into a crisis. Result, people stopped spending money from their pockets even for their needs. Yes, here where the Recession actually came in. There was a stop of cash flow across the globe. It’s simple logic. If we don’t spend, the money will not roll from hand to hand, resulting in decrease in demand. Decline in demand causes decrease in sales. Less sales causes decrease in manufacturing. Lesser manufacturing means job cuts. Job cuts create more fear in the common man’s life. So, this is a vicious cycle which is deepening the Recession more and more. Over and above all, the announcements of stimulus packages by the governments of major economies increases the fear in the minds of the common man and convinces him that recession exists and its deep.
AVERSION OF RECESSION:
There is only one way to come out of this vicious cycle of recession. Let’s lead a normal life, without fear. Let’s not hold back our needs and keep the money blocked. Unless we spend on necessary things, we will not be able to inject cash in to the reeling market. It’s like getting into a Reverse Osmosis process. This of course does not mean that we start clubbing every weekend and go out for expensive dinner every Wednesday. It means to stabilize our lifestyle to avert the destruction caused by the man made devil called “Recession”.
So, go out and buy that pair of shoes that you needed for the past couple of years. Take you family out for dinner at least once a month. But at the same time, keep your finances calculated.
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