Save Money And Invest Money
It really does seem like everyone is making at least a little bit of money in the online internet world. With so many different things going on and so many different people interested in the idea of the online world, many different people have come to the conclusions that the internet boom has yet to reach its peak. For people that make their living through the online world this is certainly good news. While people may be tempted to go out and spend until they can’t spend anymore with all the money they’ve made, it would do well for people to remember that we were at this stage before.
Most people are too young to remember it, but the internet boom that we are experiencing right now is the second internet boom in history. Ending the last boom, the September 11th attacks happened in the United States. Air traffic was grounded, security measures increased and of course in the wake of that a recession in the economy started to shake the population. No longer were people putting money into unproven internet ventures and therefore the boom of the internet went bust.
So, where are we now? People are making fortunes again and other people are having the times of their life. However, now that you know history, maybe you will realize that this boom may not go on forever. The start of a bigger economic recession in the United States and the dropping like a stone of the US Dollar suggest that the internet boom may bust again at some stage. While the internet boom is still growing massively, you need to save money if that boom eventually does go bust.
How do we reduce the impact of a recession on our business?
First of all, pay off your personal consumer debt. Then it’s important to have readily available cash so that you can pay your bills, and otherwise live a life. A cash amount equal to three months of your monthly expenses would be a good starting point.
After that, you should look at higher yield investments that will have your money working for you and providing you with regular cash-flow. There will be some awesome real estate investment opportunities falling out of the sub-prime problem. You may want to put some of your money into paper assets. In any event, real estate and paper investments require that you spend time becoming expert in these areas. Because time is the most scarce resource, many of us will turn to investment advisors. If you use an investment advisor, you need to take the time to do your homework on this too.
It may well be that your best option is to continue to invest in your own business. You have proven to yourself that you are an expert in this field. You know that the more you invest in and expand your internet business, the more successful you will be. You can then be prepared, with an even larger on-line business, to weather any downturn and possible reduced sales. If any so called “bust” hits, you will then have time to evaluate the opportunites and strategies of your business. You will still be successful if you want to be. And remember that should a bust happen, a boom follows. Be patient. We all have to make the best out of boom or bust situations.