What Do You Do During A Recession?

What Do You Do During A Recession? By Bill Roberts

For the most part economic activity slows down during a recession. That is actually the definition of a recession: two successive quarters of decreased economic activity. There are various technical descriptions but this is good enough for our purposes.

Recessions always lead to recoveries, usually about 18 months later.

So what do you do during the recession? Save your money? Get ready to "pounce" once the recovery is announced? Sleep? Or do you take positive action?

Whatever you might want to do once the recovery starts, you would be better off doing it while the recession lurks. During a recession everything is cheaper. Everything!

If you are thinking about starting a business, then you will be able to get a better deal on the premises your business will need. Financing terms will be lower. Supplies and inventories can be had at major discounts. Advertising should cost less. Any construction you need to accomplish can be done for significantly less money than will be the case after the recovery.

If you thinking about investing in real estate, prices, selection, and financing costs are all better during the recession than after the recovery.

And what if you want to build? With nothing selling, building during a recession is just plain crazy, or is it?

If you decided today you wanted to build something and you got started right away to accomplish that then you should finish your project just about the time the recovery begins. You will have reaped all the benefits of the recession. You will have been able to complete your project on time and for lower costs. Most of the construction bottlenecks just aren't present. Supplies are available when you need them. Sub-contractors are anxious to work. Inspectors aren't over burdened with work. Even the local building department is able to get right to your application.

Now your project is complete and here comes the recovery. How sweet it is!