I hate doomsayers because I am an optimist. However, what most of them have been saying about the world’s economy happenstances in 2008 came to pass. While crude oil prices in the world market continue to drop, almost on the same pace when it climbed early this year, inflation rates continue to worsen. What does this means for us? Can we spare ourselves from the agony this recession brings?Higher Consumer Spending
We are expecting, or at least the government is, that with the holidays drawing near, consumer spending will take a spike and awaken the economy from its slumber. What I am seeing and hearing is the contrary. More and more people are too reluctant to spend their measly income. This attitude is positive in a way. It means people are now slowly learning the value of frugal living (in a hard way though). However, this attitude could have been more appropriate in better days.Better Economy in 2009?
While I am an optimistic that there will be a good turn around on the economy come 2009, at the same time, I remain pragmatic about the current situation. It could still get worse. Am I contradicting myself there? Or again, am I simply stating the obvious?Prepare for the worst recession in history
More and more people are foreclosing their mortgages, though the cost of low-cost housing development dipped. IMO, it’s the right thing to do. No, it is the smart thing to do. Why let yourself suffer in making the obligatory payments when you are struggling to make both ends meet? Cutting your losses as early as possible is the smartest thing to do. You need all the money you can save today to prepare yourself and your family for the worst economic recession in history.Debt-free Lifestyle and Frugal Living
Debt free lifestyle is no longer an option here, it is necessary. In fact, in bad times or good times, getting yourself into debt should not even be an option at all. How does it feel when you get a free credit report and it tells you that you have an outstanding rating and that any bank and lending institution can give you a loan with no strings attached? It feels great right? A debt free lifestyle does not only guarantees an A+ score in your credit ratings but a worry-free living, and enjoy the holidays more than your neighbors. It’s not too late to start today, In fact, this the perfect time to do just that. Start with debt consolidation to manage and eliminate your debts, then move forward.Take a rest
The holiday season is supposed to give all of us a rest, even if it is short, from our toiling and worries. Take a more positive step in eliminating those worries. And whichever it is, make it a long term solution like a permanent change in your lifestyle. Frugal living, after all, has a more desirable effect regardless on what the current economy is. Do yourself a favor, take a rest this holiday.Am I making sense? What is your take?