9 Steps To Thrive In A Slowing Economy

Increasingly, it looks like the U.S. economy is intrinsically strong but not the economies of our trading partners and international customers. In addition to economic weakness in the Euro zone, there's the Arab Spring and its likely impact on oil prices, as I mentioned in my earlier commentary on the possibility of a sharp spike in oil prices. We now also have more evidence that the so called growth economies of China and Asia are feeling the strain of rampant inflation in basic commodities such as food and sky high real estate prices that are putting a damper on housing construction. As a result, the U.S. economy will likely grow more modestly and job creation and salaries and benefits in the U.S. will continue to be constrained. So, it appears more and more that we will see slow but sustainable growth in the years ahead�� some say possibly for another decade.

How then should you position yourself to get ahead despite slow economic growth scenario? Here are a few steps to help you combat economic sluggishness and still come out ahead.

1. Pay down your debts. Basically, your money in the bank isn't doing much to add to your wealth. With interest rates near zero, your savings are not even keeping up with inflation. So why have that money lose value? Instead, use your spare cash to pay down debt.? And let me emphasize, it's your spare cash I am talking about, not all your savings �C because you must stash away for a rainy day, should you get laid off or otherwise suffer a loss of income.

2. Think Like a CEO. You really are CEO of your own family. And like all good CEOs, you cannot afford to be blind-sided by unexpected events. In fact, more than a corporate CEO, the head of a household with children and dependents has a lot more to lose if things go awry unexpectedly. So always keep your ears open, understand early warni! ngs such as pay freezes that may signal layoffs or trouble ahead, and plan your finances for all eventualities. And like all smart CEOs, anticipate and address problems before they take you by surprise and threaten your financial well being.

You can do this very simply by cutting down on lattes by brewing coffee at home (a $5.99 pound of home-brewed coffee can save you hundreds of dollars when done consistently), stretching out the life of your car, or say, buying a second-hand car with low miles instead of getting a new one, packing a healthy snack and carrying your own soda as opposed to eating out at work, fewer trips to the mall, and so on.{$end}

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