RECESSION-PROOF JOBS

Economic Crisis And Recession-Proof Jobs

First Published: ADawnJournal.com March 29, 2009

In the financial climate that prevails at the moment, there are numerous people who very understandably feel that there is no way they will ever get a job. Companies are laying off workers or asking them to take fewer hours in order to allow them to keep operating, and as a result the number of companies actually taking on new staff is falling sharply. This is the human effect of the recession being shown as clear as day. Newly graduated college students are finding themselves with large scale student debt and without a job that allows them to start paying it off. People who have been in the same job for twenty years and more are all of a sudden finding themselves unemployed and with scarce opportunity to retrain and find a new job.

Despite this, there are some companies and individuals who continue to thrive even in the heart of the recession. Some jobs are seemingly fire-proof, and some companies are experiencing little, if any, fall in profits or marketability. These jobs and these companies are the ones who are recession-proof. As fanciful as that term may appear, the simple truth is that there are services that a huge number of people will continue to need, and these services are not going to suddenly hit the skids in the same way that consumer outlets have been. When people have to tighten their belts financially, the first things to go are the things that they want but do not need. The things that we need will continue to do well because, whether we like it or not, we have to pay out for them.

For example, health care professionals are not suffering unduly in the recession because – credit crunch or no credit crunch – people are still getting sick, getting injured and needing treatment. Although there may be a drop in terms of people with comprehensive medical insurance as workers get laid off, there is no question that people are still going to their doctors in cases of necessity. Just as they will go to the doctor to get themselves fixed, they will also see another recession-proof worker – the car mechanic – when their car breaks down to get that fixed. Living without a motor vehicle, for many people, is simply not something that they can countenance.

The key, then, to making yourself recession proof is not easy, but it is clear. Make yourself indispensable. If you can get yourself into a market sector on which people rely and on which they will spend money, then you will give yourself a big advantage in the credit crunch era. If you are looking to go into business, then yes, now is a risky time for that but if you can get a business plan going for something that is essential it will pay off. Think about what people turn to in times of financial difficulty, and try to make your mark in those areas. It is essential to protect yourself, because the recession may continue for some time.

Positive Signs In Canadian Economy – But A Long Way Still To Go

Financial Crisis and Canadian Economy

First Published: ADawnJournal.com April 1, 2009

As people hang on for news that the financial world is lifting itself from its sickbed and preparing to walk again, any little bit of good news is likely to be taken as an encouraging sign that the end may be in sight. There are timely warnings, then, attached to the news that Toronto and Ontario have both reported rises in the rate of inflation for February. As both cities saw a rise of 0.1% from January’s rates, and Canada in general leaped by 0.3%, and the stock market rose for an eighth consecutive day, there may well be some desire to crack open a bottle of moderately-priced champagne – but this should be initially resisted, say experts. The inflation rate is predicted to fall in the coming months as more factors come into play.

The markets and the prices will continue to be watched in the months to come, as the world watches America for signs that things are improving there. Like the British government a few weeks ago, the US administration has taken its first steps toward quantitative easing by announcing a plan to buy up US$300bn in treasury bills. The danger inherent in this is that it can cause inflation to rise too quickly, and the Canadian government is expected to hold off on any quantitative easing at least for the present, preferring to keep a close eye on the economy and put in place prudent measures such as purchasing commercial paper in a bit to stimulate business lending.

While any signs of stirring in the economy are certainly to be welcomed, the fact of the matter is that nothing can presently be said to be happening that is a definitive “beginning of the end” of the financial turmoil, even in a Canada that has been applauded for its sound handling of the crisis. As a newly-installed President is finding out south of the border, people are tending to be skeptical of any financial stimulus plans, preferring to wait until the evidence of their own eyes gives them permission to get excited. The overall message is still that this is not a crisis which will recede overnight, and that we may well be looking at something that takes years to finally be over.

For the present, it seems that all that the consumer can to is continue to spend wisely, save assiduously and wait things out. The thing that is sticking in everyone’s mind, no matter which nation they live in, is that nobody can really say they have a definitive way to cure the crisis. If they did, it would already be in place. Patience is going to be the key, in Canada as much as everywhere else, and this is one case where no-one can predict with absolute certainty what will happen tomorrow, next week or next month. Amid all that, who’d be a President?

New Body Launched to Help Canadians in Financial Crisis

The Canadian Association of Credit Counselling Services Begins Its Journey

First Published: ADawnJournal.com April 5, 2009

The credit crisis has bitten deep in many countries the world over. Perhaps as a result of the many alerts that have been sounded worldwide in the last few years, it had seemed like people were taking a rather skeptical view of this crisis. When you take into account that the Y2K bug never really stung – or at least planes did not fall from the sky and in fact the world kept operating much as it had before – and that although bird flu claimed more lives than one would have hoped, it never really reared up into the crisis it may have been, it is easy to see why there were people who brushed off the idea of the credit crunch. But it is here, and it is very real.

More and more Canadians are now having to admit that they are being sucked into the trouble that the crisis has caused. People are losing their jobs and their homes, and as a consequence there is a very real human cost to all of this. Although Canada was one of the last countries to submit to the global credit crisis, it has certainly succumbed to some extent, and the people being affected range from the high earners to the low-paid. Although the sound financial policies practised more widely in Canada than almost anywhere else mean that we will be one of the first countries to recover, that may be a while off yet. In the meantime it is essential that there are people out there to provide help for those who are at the mercy of the credit crunch, and that is why people should be relieved at the founding of the Canadian Association of Credit Counselling Services (CACCS).

Credit counselling is a vitally important step in putting people on the right footing to deal with this crisis. The existence of paid-for debt counselling is something that is really not helping the current situation, and if you have been considering putting your debt matters in the hands of a company who promise to get your finances sorted out “for a small monthly fee”, please reconsider. If anyone says that you paying them to fix things will help you out of debt, then they are lying to you. There are services who will do the same thing free of charge, and they are generally far better qualified than the fly-by-night profit-based debt management companies.

CACCS are dedicated to providing an umbrella under which the not-for-profit credit counselling services can operate, and raising awareness of the services they provide. If you think about it, the profit-making companies who purport to offer the same service are going to have less incentive to get you out of debt – because the longer you are paying them to “sort things out”, the better for their profit margin. If you are working with one of those organizations, take the first steps towards kicking them into the long grass today and contact CACCS at their website (www.caccs.ca)

Is Now The Right Time To Buy?

The credit Crisis And You

First Published ADawnJournal.com : May 10, 2009

The fact that the financial markets are currently in a total mess has led many people to question whether getting on the real estate ladder is quite safe. As the news reports continue to resemble some kind of reality TV show by the title of “When Mortgages Go Toxic”, it is only to be expected that people should be reserved in terms of going after that new house – if things go wrong they could end up in poorer financial shape than they ever had imagined. But as with everything, there are two sides to the situation. You need to take into account things other than the turmoil that the market is in, and get an idea of exactly where you stand – because the truth of the matter is that no two situations are exactly the same.

The people who will really lose out in the current market are those who have a poor credit score along with those with a dubious score. As little as one missed or incomplete payment, or any reduced payment agreements with creditors and you could be judged as a credit risk in the current market. If, in addition, you need to sell to buy, then you are looking at getting less for your current house, and the shortfall may be too much to make up. It is not the time to upgrade your living arrangements, nor get into property developing for profit if you are in any of the above situations. Aside from people in these cases, however, there is still some scope. After all, the banks cannot stop lending completely – it is still an important income for them.

The credit crisis has meant that banks need to be more careful about who they lend to. Seeing it from their point of view, it is entirely reasonable that they could look at an individual’s credit file, see black marks against their name and be more than a little bit reticent about lending large sums of money. They need to protect their investments, and it was irresponsible lending on the part of major banks that precipitated the crisis in the first place.

If, however, you have an excellent credit history – the longer the better as it is long-term control of lending and repayment that they are looking for – you still stand a good chance of getting a loan, and the market is depressed at the moment, meaning that the speculator with access to funds is in a very advantageous position.

If you have recently taken out a loan, it may be wise to wait a little while to take out another. If you have the ability to pay off all or most of the loan, it is less important, as the thing that the lenders are really looking out for is overcommitment. Even people in very good jobs are still prone to downsizing – so large monthly repayments are still undesirable. The banks and the borrowers have been given a sobering lesson in the last couple of years, and it would be naïve to think that the rules could stay as they were.

Why Canada Is The Place To Be Right Now

Best Place Canada

As things stand today, there are few parts of the globe that have not been touched by the problems in financial markets – problems which began in earnest over a year ago now and have been worsening ever since. The situation right now seems to point to a global recession which will only begin to lift during the latter part of next year. While playing the blame game is certainly not going to help anyone, there is a lot of blame flying around anyway, most of which is being aimed at the most acquisitive economies, and a large amount of that is directed squarely at the United States. Conversely, experts seem to have mostly good things to say about Canada.

There is little doubt that part of the reason for this is the proximity with the United States, which allows a side-by-side comparison between neighbours. While the crisis itself has been attributed to the sub-prime mortgage lending crisis in the US – although this is only part of the story, and the sub-prime market’s collapse was more catalyst than cause – the global nature of the markets ensures that when one economy takes a blow, the businesses which have investments in that economy suffer also. Hence, it was not just US banks that suffered in the light of the credit crisis, and when the problems precipitated a comparatively small gust of wind, those businesses which were not built on the strongest of foundations began to collapse.

The credit crisis, therefore, may have been catalyzed by what was happening in the US, but it immediately affected banks in the United Kingdom, Germany, Japan (which was already having problems) and beyond. To date it has even caused governments to be recalled, including that of Iceland, which had been surfing a wave of financial well-being. Canada itself has been far from untouched, but the current suffering here has been more of an inevitable outcome of global problems than a headlong plunge precipitated by failure to plan. While other countries pretty much dived head first into the cracks, Canada was slowly sucked towards them before sliding over the edge. Therefore, when the markets begin their definitive improvement, Canada will be one of the first countries to climb out of the mess.

There are so many stereotypes about supposed national tendencies, and some of the more unkind ones seem to imply that Canada is a country where nothing much happens, and what does happen is not that exciting. Anyone living here can see how inaccurate that is. The upside, however, of that stereotype is that Canada tends to find itself in better shape than others having refused to gamble away everything it owns.

Things right now are shaky – not just in Canada, but in most of the world – but this does mean that if you have cash to invest, prices now are at their lowest in some time and may not have far to fall. And once the economic indicators dictate that we are on the way to recovery, watch those numbers climb. Much better to watch it from Canada than anywhere else.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to Ahmed Dawn Dot Com. This article originally published on the above website on Apr 10, 2009.