Blog Marketing Academy - Latest Comments in How This Problogger Is Dealing With Uncertain Economic Times

Re: How This Problogger Is Dealing With Uncertain Economic Times

Guest — Sun, 05 Jun 2011 23:21:18 -0000

Just found this link on your Facebook page, David. This was well written and well said. Not sure what the future holds for this country's economy, but you are right in that people need to change their plans - and what they've been doing all these years. Hope this finds you well.

Re: How This Problogger Is Dealing With Uncertain Economic Times

Sticker Printing — Thu, 25 Mar 2010 16:37:29 -0000

It's nice for people to know and actually understand what they can do and what they should do, anyway thanks, you really provided us some great ideas.

Re: How This Problogger Is Dealing With Uncertain Economic Times

club penguin — Thu, 10 Dec 2009 01:17:14 -0000

I probably wouldn't do more gold right now; I'd invest in corporate bonds for long-term appreciation, and dividend stocks. My IRA is all dividend stocks and a double short ETF of the S&P 500. MPW was my most recent acquisition; I picked it up at $6.98 for an 11% annual return...though the stock itself may fall in the coming months.

Re: How This Problogger Is Dealing With Uncertain Economic Times

nileshbabu — Wed, 07 Oct 2009 00:14:53 -0000

thx for detailed & insightful article. will try to implement it

Re: How This Problogger Is Dealing With Uncertain Economic Times

Andrew Caldwell — Tue, 15 Sep 2009 20:43:37 -0000

Hi David,

Recently down in Australia every person has been given a 'stimulus' package of $900 to spend and put back into the economy.
People has rushed out and spent the money, some people using it as deposits on new plasma tv's, cars etc. It's almost unheard of to put this money in the bank! We'll be paying for it in tax hikes anyway....

http://leadersofthefreeworl...

Re: How This Problogger Is Dealing With Uncertain Economic Times

Roman — Sun, 13 Sep 2009 12:00:15 -0000

Hello David, still not sure what you mean by “produce more then you consume” or "produce more overall value than you require to live".

To simplify my point, a farmer on a self sustaining farm can choose to produce only enough to keep his farm going. Or he can produce a surplus (more then he can consume). By producing more he gains a little security for the future but there are disadvantages:

1)He needs to work harder
2)He needs to build a barn to store the excess.
3)There is always the possibility that the barn will burn down.

I assumed that this is what you were stating is the problem with savings in the real word, regardless if your savings are in currency or the metals there is always the risk that the economy will wipe out your savings – all that hard work of producing a surplus gets wiped out. A major disadvantage to accumulating savings: you have to work hard and there is a chance it gets wiped out.

To answer your question: Which one is more secure – the saver or the produce only what you can consume guy? I would say they are about equal. Producing more then consumption and then saving does not protect you against the future economy any more then simply producing only as much as you consume.

Re: How This Problogger Is Dealing With Uncertain Economic Times

David Risley — Fri, 11 Sep 2009 09:16:19 -0000

When I say "produce", I'm not referring to personal wealth. I'm referring to producing those products which you SELL to other people. So, what I'm saying is that you have to produce more overall value than you require to live.

Which do you think will be more secure? A person/company which produces in excess and over-delivered to it's customers? Or one focused on only producing what it needs for itself, just barely scraping by?

Re: How This Problogger Is Dealing With Uncertain Economic Times

David Risley — Fri, 11 Sep 2009 09:10:50 -0000

The house isn't paid for. We have a mortgage on it like most other people.

Re: How This Problogger Is Dealing With Uncertain Economic Times

David Risley — Fri, 11 Sep 2009 09:10:10 -0000

Bout an hour. :)

Re: How This Problogger Is Dealing With Uncertain Economic Times

Roman — Fri, 11 Sep 2009 07:18:48 -0000

Hello David,

One thing that I do not understand. Why do you advocate that we should produce MORE then we consume. I would think that all you need is to produce only as much as you consume.

The advantage of producing only what you consume is that you avoid the problem of savings completly. No need to buy metals of worry about inflation.

Or as you claiming that we should produce more today so that later we can stop production and only consume? Is that your plan - to stop producing one day (shut down this blog) and live off your accumulated metals?

For a football player who needs his young body or a nuclear physicist who needs his brain surplus production is neccessary - but a blogger? A successful blog should be able to produce even after there is six feet of dirt between you and the sunlight.

Re: How This Problogger Is Dealing With Uncertain Economic Times

Jimi Jones — Thu, 10 Sep 2009 22:32:35 -0000

Very thought provoking and well written article, David

We are living in a time of great uncertainty and you are wise to consider your family's long-term financial security. This is something that everyone needs to do, if they haven't already.

Gone are the days of stable employment and dependable retirement plans. Anyone with a 401k can attest to that, as many of us watched many tens of thousands of dollars evaporate into Wall Street air over the past several years.

Households, which should be operated like any other business, really have to seriously map out their futures and consider making adjustments if needed.

History has taught us however, that some of the most successful businesses were born doing economic downturns. This is why I look forward to the future as online entrepreneurs develop tomorrow's business models.

Keep blogging!

Re: How This Problogger Is Dealing With Uncertain Economic Times

Cynthia — Thu, 10 Sep 2009 16:14:38 -0000

Great info! These economic hard times is why I Started my Blog in the first place. Your financial advice is something we all need THANKS BUDDY!

Re: How This Problogger Is Dealing With Uncertain Economic Times

Mike CJ — Thu, 10 Sep 2009 16:10:50 -0000

Really interesting post, and I did pick up on you talking about buying metals on Twitter the other day - I'd be really interested in hearing more about that from you.

I don't agree about selling the house though. I bought three properties a few years ago as long term investments and the rental income has dropped this year, so we're having to put money into each to cover the mortgages, but here in Europe the first signs of recovery are everywhere and I know from past experience that property prices will show a big rise following the recession, so I have my finger's crossed for an on paper wealth bonanza soon!

Re: How This Problogger Is Dealing With Uncertain Economic Times

mikep1 — Thu, 10 Sep 2009 14:49:18 -0000

David, this is a great article - keep up the good work. I maintain an art/word blog that focuses on encouraging people to find right work (as you are saying... start PRODUCING beautiful things again America!)

We are a good people, and a good nation. We will get back to being producers again as the masses wake up (slowly) and realize - the times, they are a changin! PEOPLE GET OFF YOUR LAZY ASSets, and START MAKING AGAIN!!!
God bless you.

Re: How This Problogger Is Dealing With Uncertain Economic Times

carsonsl — Thu, 10 Sep 2009 13:56:02 -0000

Excellent timely post David. A wise financial consultant Kelly Reese said to me a few years back and I believe it's true, everyone (almost) should start there own small business. Kelly runs a free ministry helping folks with their finances, go to www.ffsi.com and sign up for a free eBook called, "The Art of Achieving Financial Freedom". There are also tools you can use for free.

Re: How This Problogger Is Dealing With Uncertain Economic Times

Linda F — Thu, 10 Sep 2009 13:26:56 -0000

Excellent article David. Very spot on view of current and uncertain times we're living in and in pointing out that now is the time to produce even harder.

I agree.

Linda F

Re: How This Problogger Is Dealing With Uncertain Economic Times

Erica — Thu, 10 Sep 2009 13:18:34 -0000

Hi David,

I've covered some of this on my own blog as well. I did buy gold the day after Bush's economic stimulus plan passed, at a time when the spot price was $865. I have 10 1oz. gold coins, and I purchased from Monex after doing some research on various vendors.

Gold is not a great long-term investment due to losses on both sides--buying and selling--and the fact that gold generally appreciates less than money. It is, however, a nice diversification.

All of my money that would have been in CDs is now in Lending Club; I'm making about 12% there.

Yes, the gov't is printing money, but credit is contracting faster than the gov't can print, so we are currently in deflation. Do you read Global Economic Analysis? It's the primary blog I trust. Denninger over at Market Ticker is also good, though a bit doomsday for my preference.

MPW and its ilk are good hedges vs. actually buying and having to maintain real estate. I wouldn't invest in any real estate ETF that does strip malls or commercial buildings. I like MPW because they do medical offices, which aren't as affected by the downturn.

As always, do your own research, I am not a certified financial planner, yada yada. :)

-Erica

Re: How This Problogger Is Dealing With Uncertain Economic Times

Max Bronson — Thu, 10 Sep 2009 11:33:52 -0000

Not sure if I agree with selling the house if you have already paid it off. If the maintenance, taxes and insurances on your current place are high, you could perhaps sell and buy a cheaper place, but I wouldn't go back to renting long term. All your other points are excellent.

Re: How This Problogger Is Dealing With Uncertain Economic Times

Max Bronson — Thu, 10 Sep 2009 11:30:02 -0000

(Deleted by poster)

Re: How This Problogger Is Dealing With Uncertain Economic Times

Existenzgruendung — Thu, 10 Sep 2009 11:18:44 -0000

Hi David, nice article. Would be interesting to know how long it takes for you to write an article of this length.

Re: How This Problogger Is Dealing With Uncertain Economic Times

GR Passwater — Thu, 10 Sep 2009 08:33:27 -0000

Great post David.

I totally agree that now is the time to work harder and build up. I am going through some difficulties of my own, but I know I need to work harder to build up my business. As you said, with the way things are going, who knows where we will be in a few years.

Thanks again and keep the good stuff coming.

Re: How This Problogger Is Dealing With Uncertain Economic Times

Leslie Samuel — Thu, 10 Sep 2009 08:32:58 -0000

Wow, another great article. Actually, I think this is among one of the best articles I've read from you to date. It really helps put everything in perspective. These are definitely things that I've been thinking about recently. I don't have any kids yet, but when my wife and I do decide to take the plunge, we want to make sure that we do things right, so that they can have a good life.

I too am making some of the same strides that you mentioned here. I'm working my butt off to build my online business. You are right - we are in the information age and information is extremely valuable. I'm glad to see other people doing the same. My wife and I actually considered investing in real estate this summer, but decided to wait a little while until the business is even stronger. It gives me something to work towards.

I've never thought about investing in gold as you mentioned, but that's definitely another solid idea. I need to start looking into that, at least for the information sake.

Once again, thank you and thank you! Keep up the great work here. I loved this article!

Re: How This Problogger Is Dealing With Uncertain Economic Times

Dave Doolin — Thu, 10 Sep 2009 08:32:16 -0000

Hi David,

It's good to see you're taking steps now, while there's time to take some steps.

The Gov is trying to call this recession "over," but unlike two years ago when people didn't really understand what was about to happen, most people I know aren't buying it. I just hope this summer isn't the "calm before the storm."

Bullion is good. Coin is better, Eagles or Maples. If you buy the GLD ETF, make sure to read the prospectus *very* carefully.

If we really head into deflation, cash will be king.