Sunday, July 12, 2009

People who earned Money in Recession

Being a financial advisor, I come across a lot of people with a variety of financial issues. I met many people who got into deep debt in the recession period. Most of them were able to get out of debt after some time. But there were few people, who not only got out of debt, but also remain out of it as well as earned millions during recession period.

Most of my clients come to me with same issues of getting out of debt and most of the time I give them a simple suggestion but at the same time tough to follow. When we talk about finance, you’ll find two types of people with two types of spending habits. First one are those people who not only earn their income but also borrow money from market or banks and spend both which gets them into heavy debt. And the other category is of those people who not only save money from their income but also earn and save money that comes from different investment which not only help them to stay out of debt but also make them wealthier than others.

So my simple and at the same time tough suggestion to follow is to stop spending money beyond your means. Try to get out of debt as soon as possible for you. In case you are too much heavy debt, then find an extra source of income and be sure that this income is not coming from any type of investment. When you are out of debt, first thing try to remain out of it and also save money which you were saving earlier for your debt payments. Then after some savings from your income, invest your money for a higher rate of return.

Few days back, I read an article in a newspaper where a Teacher didn’t spent his money beyond his means and invested most of his savings. In this way, he was able to accumulate $900 million in his account. So there is nothing impossible in this world. Even anyone of you can create this magic. So if you want to be millionaire, start saving now.

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