Before preparing ourselves for the great depression, we have to avoid silly mistakes that one can make. These silly mistakes are committed by many people in the social tier, from the top to the bottom.
A classic example of a mistake made by someone from the top-tier, is to purchase a property in good times. By purchasing a property in good times, this would also mean that you are paying good money for it(=expensive).
What many people don't realise is that, when the economy crisis comes, the value of the property will go down. It happens to many people! For example, a family man buys a landed property for $1.5 million in good times. But lo and behold, when the downturn comes, the value of the property drops to $1.1 million.
The unfortunate thing is that the family man was retrenched and is desperate for cash. He has no choice, but to sell off the property at a massive loss. This scenario is played over and over many times in places like Singapore and HongKong.
A classic example of a mistake made by someone from the middle-tier, is to purchase a car on loan. This is an example of over-spending within ones budget.
Similarly, this happens to many people. In good times, they have stable jobs and good pay rises/bonuses. But lo and behold, when the downturn comes, many of them have to take pay cuts. In worse cases, there are people who are retrenched. When all these happens, they are unable to pay off these loans and are forced to sell off their cars.
Last but not least, lets talk about the people in the bottom tier. Wait a minute, theres nothing to talk about them! Thats because these people are forever stuck in the poverty trap. They are only making enough to survive every month. Thats why we always say 'The rich gets richer, and the poor gets poorer'.
In conclusion, no matter how much money one has, we have to acknowledge the problems in our economy, and know how to safeguard our interests. The first step that we can do is to avoid silly mistakes. The above stated are classic examples of silly mistakes that many people are still committing every single day.
How to make money?...Thats a good question. But don't go around asking people that. Nobody can give you an answer. Only yourself. So start using your brains.
