Prosper News: August 2008
For many of you, summer is in full swing. Spring typically brings new life, and summer is usually a time for freedom and fun. Has this been the case for you this summer? Or has this summer been different? We know that the economy (both in America and many places around the world), is lagging. Gas prices are higher than they have ever been and more people are staying home. Are you unable to afford a vacation with the high price of gas and everything else? If you have not been able to travel, have you taken some time to enjoy life closer to home? Or, have you been so focused on your business or finances that you have not taken a vacation?
In America, we will soon be celebrating Labor Day. Labor Day is an annual holiday that celebrates the economic and social achievements of workers. It also tends to signify the end of summer and the beginning of autumn. Many families like to travel over the Labor Day weekend. They often take their last summer vacation before the children go back to school in the fall.
Whether you have the time or the means (or the desire) to travel this Labor Day, take a moment to think about the effects this holiday will have on you. You might be thinking that since you are not going anywhere, and have no plans to celebrate, that the day is of little consequence. The day itself may be of little consequence, but the opportunity the day presents could be of significance to you.
With each passing day, it seems we hear more sour news about the economy. Some headlines claim that a recession is near (or here), that housing is in great turmoil, and that economic conditions are reminiscent of The Great Depression. What does all of this have to do with you? You are not alone if you feel that the state of the economy (and the general feeling of the population) is a little similar to what we experienced shortly after the terrorist attacks of 9/11. That was nearly seven years ago. Think back to what has happened in those seven years. During that time, we have experienced one of the greatest economic expansions in recent times.
Are we predicting another great economic expansion? No. There are too many variables at play, and we are not in the business of predicting. But what can we (and you) do right now with the current market? One thing you can do is look back on the last seven years and see if you can spot any trends. The economy and the market may not improve or experience another great expansion, but what opportunities can be found ahead? What businesses, individuals, or specific investments made the best returns over the last seven years (particularly right after 9/11)? Can any of these predict good returns for the near future?
Nearly seven years ago, there were many people that gave up hope, that did not pursue their dreams, or who did not look at the current situation and identify the opportunities. Opportunities are all around, and they are just as good in a down market as an up market. In fact, sometimes the opportunities are better in a down market.
You may or may not decide to squeeze in one last summer vacation, and many other people will make the same decision you ultimately make. But do not make the mistake of taking things for granted. Take a look at the reasoning for your decision, and turn that into an opportunity.
Are gas prices too high to travel this Labor Day? If so, that likely means that you (and many others) will be looking for something to do closer to home. What opportunities does that present, and how can you capitalize on it? What activities will people look to participate in? What particular goods and services will people need for these activities?
In good times and bad, there are products, services, and entire market segments that will be booming. Will you be cashing in, or will you be sitting idly by seven years from now wishing you had thought of that? Do not get down if this summer does not seem to have the same appeal as summers you remember growing up.
You may not feel like celebrating this Labor Day, but regardless of the current economic situation, human nature is such that people like to take a break from the routine grind and have a little fun. When they do, you can be there to provide the products and services they need, or you can pass it off as another down market. The choice is yours.
Labor Day (and summer along with it) will come and go, and fall will be here soon enough. Prepare now and take advantage of the opportunities that exist (almost literally right in your own back yard), and blast into fall full of new ideas.
To your success,
The Success Team at Prosper
Success Story/Tip of the Month:
Finance: I Am Heading Towards a Prosperous and Secure Future
Eight weeks ago, I had no plan of action for my financial future/security. I was paying bills and paying what I thought I had to pay for goods and services that I needed. I was making purchases on a whim or fancy without much thought. I did not have an emergency fund or automated retirement savings, other than that with my employer. I had not explored other streams of income.
Today I have reduced my spending by limiting my trips to the store, sticking to my shopping list, and using sales and coupons to buy the things I need. I have negotiated lower interest rates with my creditors. I have automated paying a little more than half my mortgage each pay period. I have increased my 401(k) contributions to take advantage of my employer matching funds. I have opened a Roth IRA and am making automatic deposits to add up to the maximum contribution for the year. I've made changes in my insurance and cell phone, and got a programmable thermostat to reduce expenditures.
I now have files containing records of my financial holdings, obligations, and important information. I know where my money is going. I have several potential streams of income that I now know how to research and tap into.
I am headed toward a prosperous and secure future.
—Celine P.
Our ultimate goal at Prosper is to help students achieve the kind of awareness and success found by Celine. There are many potential streams of income, faster ways to pay off debt, and ways to save on purchases you make every day. With the training and education we provide, you can learn these techniques and experience the same satisfaction and freedom in your own life! Look at all the ways Celine found to increase her net worth. No matter your current situation, you can take control of your life and your finances. You can turn your dreams into reality. We look forward to continue working with you to plan and pursue your success.
