How to turn a financial crisis into a great opportunity

Sometimes, you just hit a bump in the road. It’s perfectly natural, these things happen. The economy is a fickle, complex entity that basically requires a PhD to understand. It’s up to you to pull yourself up, dust yourself off, and keep your eyes forward. Indeed, in times of trouble and strife, you need to look not so much at the positive (let’s be honest here), but rather, what you can get out of the situation. Economic crises are as universal as they are personal. Nations and individuals suffer alike, and it’s difficult to sometimes differentiate between where the former begins and the latter ends. Below we present you with some advice on how to turn a financial crisis into a great opportunity.

What is your role in this?

We are of course not blaming you for the financial crisis. The market does what it wants – geopolitics, natural disasters, international law, these are things out of our control. However, could you have done something differently? Was there any point in time where you could have made a right turn, instead of going left? Try to sit down, and meditate on your past actions. Do this without any guilt, self-punishment, or shame. Simply try to be objective, and learn.

Indeed, if you acted differently, perhaps you could have gotten out of the entire situation unscathed. You may have even had the option of getting ahead. Use this not as an opportunity to chastise yourself, but rather to know how to act in the future. It’s time to burn off the deadwood that’s been holding you back, know what to focus on. Use this crisis as a kind of spotlight that is supposed to shine a light on every aspect in which you can be found lacking.

Forces you to think outside the box

They say that necessity is the mother of all invention. This is never truer than when you face serious hardship. There is a certain amount of pressure that people need to be put under in order to thrive. When reality hits, you may notice cracks and fissures in our systems and institutions. This can act as something of a relief, a kind of understanding that things are not as fixed as they seem. In that same vein, you can apply this insight into your work.

Furthermore, you may not even have a choice in thinking outside of the box. Things are difficult, and you need to think in ways you haven’t before. The added pressure can spark some creativity, and help you make the most of bad situations. It can push you towards a different system of thinking. You’d be surprised by the things people have accomplished in desperate situations.

Make good contingency plans

Now, a big part of any business is making contingency plan. Plan for the worst, hope for the best. However, nothing compares to the real thing. You now know what a crisis looks like. Any planning, reading, and research just can compare to real, personal experience. With this behind you, you will know how to prepare, and how to handle yourself if (when) the next one comes.

So, a couple of things to glean from this situation. Always, always pay off your debt. The last thing you need in a financial crisis is added credit card debt and loans hanging over your head. Minimize any and all outstanding balances on your credit cards. If you’re going to take out a loan, think about how a crisis may be just there, around the corner.

It’s a global thing

Financial crises are not isolated incidents that only affect one area of the world. At best, they can avoid third world countries, and centre on first world areas. If you’re in Sydney, and have noticed that things are stirring in America, maybe you should look at preparing as much as you can.

For example, if you’re in the pharmaceutical business, and you’ve noticed that market is crashing in America, maybe you should prepare. In no uncertain terms, we advise you get in touch with some insolvency solutions Australia has to offer. Create backup plans for backup plans. And of course, this goes for basically any country and region.  So understanding that it’s a global thing means everything is connected, and that you can notice the warning signs (and opportunities) by keeping an eye on global markets.

Allowed to take risks

Since everything crashed and burned, there is not much left to lose now, is there? Let’s say you’re out of a job, or your company went under. Well, what’s stopping you from making that rash decision you wanted to do before? Why not become part of that small start-up you always wanted to join, but for which you didn’t want to risk your stable job? Now, the decision has been practically made for you.

When a crisis is happening, you will notice that assets will essentially plummet in value. Property prices go down, and then stock prices go down as well as investors jump ship. This is the perfect opportunity to buy stock cheap. Once the crisis ends (and we all know these do) you will be able to sell it for a better price.

Of course, the problem here is that you need to be smart about it. Study your history, do your homework. Some markets always bounce back, some are damaged for decades. Of course, there is always some guesswork involved, that’s why it’s called risk. But you can expect some amazing returns as well.

Conclusion

Financial crises are as personal as they are communal. The fickleness of the market and the economy can affect everybody and anybody. However, no matter what the damage is, and what state you are in, there are always things you can do to get out on top. Above all, understand that this was a learning opportunity that no university could have provided you with. You get a chance to prepare for the next one that will invariably come. Furthermore, you get the chance of making the most out of the station once everything invariably bounces back.