4 tips for making the most of the recession

The recession has been painful. Some of my friends have lost their jobs. Others are finding it harder to stay afloat. But this is no time to look down–rather, one must make the most of a bad situation.

There are opportunities during bad times. But to see them, one has to stay focused on the good. As Alexander Graham Bell once said, “Sometimes we stare so long at a door that is closing that we see too late the one that is open.”

Good times and bad, we must search for opportunity. Here are 4 tips for making the most out of the recession:

1. Stay positive…some good may come out of all of this

A good attitude can make a world of difference. There are reasons to stay optimistic despite gloomy forecasts. Here’s an unusual take from journalist Robert J. Samuelson in a November 2007 Washington Post article:

Recessions also have often-overlooked benefits. They dampen inflation. In weak markets, companies can’t easily raise prices or workers’ wages. Similarly, recessions punish reckless financial speculation and poor corporate investments. Bad bets don’t pay off. These disciplining effects contribute to the economy’s long-term strength, but it seems coldhearted to say so because the initial impact is hurtful.

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A year later we have seen the market and the government disciplining reckless behavior. The changes that will come out of all of this will be good in the long-run.

2. Take advantage of buying opportunities

Opportunity is knocking if you have the cash to take advantage. A down market means many sellers are scrambling with discounts and incredible bargains.

This topic has been discussed a lot so I won’t go into details here. Three of the areas that most interested me were buying a (first) house, getting a great vacation deal, and speculating in bargain stocks (naturally, this is something to be more cautious about).

3. Indulge your cheap side while you can

It’s amazing how perspectives change during hard times. When I brought homemade lunches to work during good times people thought I was being cheap. Now in the recession, a lot of other people are bringing lunches to the office…suddenly home lunches are considered sensible!

The moral of the story is that many cost-cutting actions are now socially acceptable. Take full advantage of that. Give some of your more eccentric saving tips a try. If you want some conventional tips to get started, try visiting your library (for things other than books), reduce or drop the bottled water habit, and try some less common fruits and vegetables.

If you save you’ll be handsomely rewarded. Mathematical calculation and common sense shows that saving more hands down is better than earning more.

4. Take a moment to appreciate what you have…

When things are going badly, we too often ask ourselves what we did to deserve the situation. A more balanced approach may help us cope. Here’s an email I got from a reader about how to keep calm after a horrible event:

Arthur Ashe, the legendary Wimbledon player was dying of AIDS which he got due to infected blood he received during a heart surgery in 1983.

From world over, he received letters from his fans, one of which conveyed: “Why does GOD have to select you for such a bad disease?”

To this Arthur Ashe replied:

“The world over — 50 million children start playing tennis, 5 million learn to play tennis,500,000 learn professional tennis, 50,000 come to the circuit, 5000 reach the grand slam, 50 reach Wimbledon, 4 to semi final, 2 to the finals, when I was holding a cup I never asked GOD ‘Why me?’ And today in pain I should not be asking GOD ‘Why me?’”

Sometimes you’ll get dealt a bad hand in life. Keep it in perspective with the good things you have gotten, like the improbable chance of life itself.

Make the most of what you have and you’ll be on the right track.