July 7th, 2008
The economy is down. But that doesn't
mean you have to be. Smart thinking and a bit of patience will minimize
any harm to yourself, company, or family.
The biggest news to hit the wire services
is the potential bankruptcy from big auto giant General Motors. Sending
shockwaves across the world, it sent stock markets into a free-fall,
and it indicated that the present economic environment is indeed on
a downward spiral.
Jobs are being cut on a drastic level
as companies find it difficult (which is rather questionable, considering
executives are not cutting their own salaries) to keep staff aboard.
This puts a lot of people out of work
with nary a chance of finding something as sustainable as companies
are more reluctant to hire.
What's the big contributor to this
economic mess? It's black, it smells and it's called "Black Gold".
The price of oil is reverberating outward to infect many channels in
the market, affecting many facets of our living lives.
Transportation is probably the number
one industry and commodity to be affected by these soaring prices. The
cost of driving to and from work, delivery of goods, and the transit
of people will be drastically affected, eventually causing people to
abandon their cars and stay close to home.
The cost of transit will make it nearly
unaffordable to even ponder taking it, as the transit companies shift
increasing overhead onto customers, making fares steeper. With the average
car needing 50 litres of gas and going an estimated 500 or so kilometres
on that full tank, the amount of money to maintain the car gets ridiculous,
especially if you're reliant on your car to do your job or other different
things.
It's either pay a hefty fare and take
nearly double the time to get from point A to point B, or break down
and pay that $50 - $60 to fill the tank and go where you have to go,
watching your money be burned away as the car idles in congested traffic.
Damned if you do, damned if you don't.
Food, another major commodity, may
be the next biggest item to be affected. Corn, being a major contributor
to ethanol-based fuel engines, has seen its price jump over the last
few months thanks to the high demand. Overall, however, the price of
transporting the food gets more expensive as transportation companies
and supermarkets somehow find the need to pass increased costs onto
the consumer.
No one wants to spend more money than
they have to. Which is probably why the majority of folks are looking
for alternative methods and models of cars to reduce this overbearing,
and heavily speculated, price of oil.
Here's what you can do to help reduce
the blow of recession:
Invest in Practical Forms of
Transportation: A bike, one of the most conventional forms
of travel there is, helps reduce the need to spend ominous amounts of
money just to maintain it. It's an excellent utility to get from point
A to point B (within a short distance) relatively cheap.
If that's not within your realm of
interest, looking at more fuel-efficient automobiles that extend their
usage would be an optimum option. Many small to medium cars fetch on
average 700 to 1,000 KM/tank. This might be the better way to go, especially
if you cannot live without your car.
Find Work Closer to Home:
If you can manage to find a position that's closer to home that is within
walking distance or minimizes the amount of usage on your car, even
if you need to take a small pay cut, then it might be worth it.
Become Self-Sufficient:
If you're fortunate to own property, this may be the time to start growing
your own vegetables. With the cost of food going up, investing in soil,
fertilizer and a few seeds will reduce your food bill by at least $50.
If you can, look into solar power for
the home or find alternative methods to heat/cool the house minimalizing
as much energy as possible. Close the blinds during the day to prevent
the sunlight from entering. Only use the AC if needed. Opening windows
and keeping the interior pretty dark will help keep the need for AC
down and provide a pretty decent temperature control as well.
Reduce the Amount of Outstanding
Credit: Banks and loaning agencies love to distribute free
money. But they get you in the long run with high interest rates. Be
careful as to how much you put on your credit cards or the purchases
that require financing.
If need be, put as much towards your
existing loans now. You'll be on a safer cushion this way should the
economy really have a heavy bearing on people's ability to maintain
their debts.
This oil crisis will not go away anytime
soon. In fact, it might just get worse from here on in until the world
puts their minds together in order to find some alternative sources
of energy.
There's no sense in being Chicken Little
II. Panicking does not solve anything. Remain calm, think clearly and
look at all available options before delving into something you're not
sure of.
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