There are some dicey things happening with the U.S. economy right now. Gas prices are super high. The drastic increase in debt by the federal government as well as people on an individual level is leading to a very shaky economic foundation. Things are likely going to get worse before they get better, but as a person tuned in with technology, there are some things you can do to help with your own personal finances.
Read on to learn more about surviving economic meltdown with a techie slant.
The Situation
The problem with this crisis is that most people, quite frankly, don’t understand it. That leads to people going about their business as if nothing is happening, or freaking out unnecessarily. When I check out the two presidential candidates talking about this, it is clear that neither really understands it. And, to a much larger degree, the people watching them don’t understand it either. Their followers just sit there and listen and wait for something to cheer about. The economic policies go right over their head.
And that is super scary when an uneducated electorate is about to elect the president who is going to inherit this mess.
At the very least, the U.S. economy is going to go into a recession. And, to the degree that that recession deepens, it is going to affect the world economy, too.
My job, though, isn’t to explain economics. This is a tech site, so what can a techie do to weather it out?
#1 – Learn More
The more you understand something, the less you can become the adverse effect of it. So, you should actively spend time online learning. Learn more about using technology. Learn new skill sets. And don’t be afraid to invest a little money into that knowledge if necessary.
The world of Information Technology and Internet business isn’t going to go anywhere in the event of a recession. If anything, the Internet is going to play a much larger role in our lives as people look to save money, to travel less, to educate themselves. So, the more you know about these fields, the more you can participate in this industry.
On that note, you should:
- Read and subscribe to blogs
- Find a way to collect and organize information you run across on the Internet which you may want to apply later. Evernote is a good program for this, I’ve found.
#2 – Become Open to Making Money Online
I have dabbled in the area of making money online as subject matter on this website. And that wasn’t without purpose. I believe that making money on the Internet is going to be a POWERFUL way of weathering an economic downturn. Internet business has several benefits, including:
- Low cost of entry (sometimes NO cost)
- Equal playing field
- Access to a truly global marketplace
Many of PCMech’s readers are more interested in optimizing and fixing their computers than actually using it to do much (past surveys have shown this). Many of my readers are older and feel they are too old to learn much about internet business. My suggestion, though, is to throw that notion out the window because it is not helpful to you. Internet business is a powerful way to generate an income by going what you love – surfing the net and using your computer.
Be open to learning more about it and, more importantly, partaking in it.
#3 – Get Involved in Social Networking
Social networking like Twitter, Facebook and LinkedIn is NOT a waste of time. Anybody in the business community knows how important contacts are. Its all in who you know. Well, it isn’t realistic to go out and meet everybody in person. Social networks are a way to meet people and add them to your network without having to meet them in person. It can be done from the comfort of your desk chair.
I can’t count the number of times I have been to a conference and had people say they already know me from Twitter. The people on these social networks are real people, with real experience and real contacts of their own. You never know how one person can possibly change your life.
If you lose your job, you’re going to be much better off if you can turn around and ask your social network for potential job opportunities. It beats the hell out of posting yet another resume on CareerBuilder and crossing your fingers hoping to get noticed. Besides, by being able to tap into the pool of knowledge on your social network, you can learn potential answers to your problems you would not have had access to previously.
Do not underestimate the power of social networking. Your social network can and will be a valuable asset in an economic downturn.
#4 – Start a Blog
A blog can help you get noticed on the Internet. Pick an area which you are expert in (or very interested in) and start blogging about it. You can become known as an expert on your subject and this can help gain recognition which can land you a job opportunity. I know several people who have landed jobs based on their blog.
A little secret for you, too: Often, you are perceived as an expert just because you are online and offering valuable content on your topic. You might not think you’re an expert, but people on the other end of your blog will often think that you are.
Don’t underestimate the power of a blog. At the heart of this, it is all about promoting and getting your feelers out into the world. It is PEOPLE who are going to help you weather a deep recession in your personal life. Other people are the key to it. Blogging and social networking puts you in contact with a lot of people. Those who really practice this will be better off as the economy slows.
A tip: A blog about surviving a recession might do really well. Think about your market and write for it.
#5 – Don’t Be a Dumbass
Yes, this is a bit of a catch-all tip, and a coarsely worded one at that. But, it is true. There are several things to keep in mind under this umbrella:
- Stop buying stuff using debt with only a hope of paying it off. It is OK to use a credit card, but you should be able to pay it off every month. If you cannot pay it off quickly, you shouldn’t be buying it.
- Build a cash reserve.
- Buy gold. Gold will sustain value despite the perceived value of currency.
- Get your head out of the sand. Now is the time to use your computer as the tool it is and stop spending all your time tinkering with it like it is a shiny set of legos. Building a computer is great. Making sure it works well is certainly important. But, at the end of the day, it is a tool that should be used to improve your life. It shouldn’t BE your life. Use it to learn, to keep tabs on the news, to build your network, even to make some money.
- Make your mission in life to be the best at what you’re doing. If you stand out in your company, you are less likely to be laid off.
- Use comparison shopping engines like Pricegrabber to find the best deals on things you’re looking to buy. No need to spend money unnecessarily. And be sure to check out Ebay for potentially buying used or discounted.
Some of these tips aren’t geeky, but hey, geeks are people, too. 
Those in the high-tech realm are in a better position to weather a recession than people who are not. Those educated in these areas are better off. Those who put technology to real-world use will be better off.
The aim of this article is simply to get my readers thinking about it. The crap is hitting the fan in the economy and nobody really knows how deep it will go. Now is the time to think about how to use all of this cool technology around us to strategically weather it out in our own lives.
What are your thoughts? Do you have any ideas on using our computers to weather a recession? Do you have any requests on how PCMech can help you with that? Please comment below.
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Not exactly the kind of article I expected to read this morning, but an extremely informative one nonetheless!
“At the very least, the U.S. economy is going to go into a recession. And, to the degree that that recession deepens, it is going to affect the world economy, too.”
Whether the U.S. economy goes deeper into a recession or not, it actually impacts the world economy regardless. As the worlds leading superpower, the state of the U.S. economy has worldwide affect at all times – recession or otherwise.
Unfortunately as far as technology is concerned there is an international divide. It’s partly cultural and partly due to pure pig ignorance and politics:
In America the majority of people appear to be fairly well educated with a definitive perspective on reality and modern technologies. These people; as well as to a maybe lesser extent the minority of the not-so-well educated in America, all use and are familiar with technology: Basically it’s a pretty standard thing as far as America is concerned; and all Americans including businesses etc use it. At least that is the impression I get: The internet is a really big thing in USA and is a large part of a lot of people’s lives. The problem in the States is the infrastructure of the world-wide-web: Slow download speeds in many places, limited availability of a decent connection in some areas, etc…
And so we fly across the puddle to the UK – Where the infrastructure isn’t much if any better, and just as in the USA there are those who depend upon the internet a lot less than others. – Let me rephrase that: There are those; probably a majority, in the UK, whose attitude is:
“The Internet’s for geeks and brainy people with inheritances: Some of us have to work for a living and don’t get a chance to play on the internet.” (Meaning ‘I’m British and I know everything. I have conservative values and I love working 9-5 day-in, day-out. It’s the only way to make money for me; and I know this because I’m British!’)
Others would say:
“Ooh young man! The Internet’s for the young: I’m over 40 and too old to learn all that techie stuff.” (Meaning ‘I’m British, ignorant, and I can’t be bothered with it unless I can earn more than £10 an hour learning it.’)
Still others would say:
“Der I aint brainy enough to do all that: I wouldn’t know how to switch a computer on.” (Meaning ‘I’m a loser and I’ve given up before I even try.’ ‘Gis a job.)
The remainder of British people consist of myself and a few other specimens of that rare lifeform known as and sneered at by stuffy British society as the British geek. The British Government disincentivise people by putting the matter of the shoddy infrastructure lower down on the list of priorities; preferring their paperwork-bureaucracy and red-tape of the past.
In the UK the internet is seen in general as a means for teenagers to play games, download movies, and keep in touch with other teenagers, a means for granny to order her shopping without going to the supermarket, and an alternative to the Postal Service.
I would be mightily surprised if 99% of the overall British population had even heard of Web 2.0, let alone realise that there are ways of online communication other than MSN Messenger and email.
Venturing further into Europe; I’m not sure whether the perception of the internet is any different. I do know that in Northern Europe they have a better infrastructure, whereas in Southern Europe, other than in France and Spain, in general it is similar to or worse than the UK’s infrastructure.
So to summarise thusfar: Other than in America a program of Government investment is required coupled with education of the change-resistant masses (Including the governmental authorities themselves.) of mindless drones who have all become stuck in a rut, whilst still living in the past under a repressive bureaucratic governmental feudal-system which penalises progress. In America itself it appears that education is adequate as is personal freedom, but further investment in infrastructure could be a good thing.
Until the rest of the world catches up and realises that it is in fact 2008 – not 1908 – Then the effectiveness of technology will only be fully prevalent within the USA itself.
This is, in a way, a good thing for the US: America can be the hub of the world; the place that all the other countries look to for inspiration when they finally manage to pull their heads out of their asses. – But surely it doesn’t have to be this way? This is a ‘Global Village’ isn’t it?
This is Planet Earth. Shouldn’t equality be the thing that all are aiming for? The problem is that there are too many “old-school” figures in authority holding back progress. If only these halfwits would stop squabbling about land, religion, whose daddy can beat up their daddy, and all that nonsense; then perhaps everyone might get somewhere fast.
I’m leaving this comment completely open and inviting follow-ups.
Excellent advice. you know, Linkedin was just added to the About.com top 10 employment site list with 2 other job sites but linkedin is still the only social network on the list. the 3 newest additions are –
http://www.linkedin.com (networking)
http://www.indeed.com (aggregated lists)
http://www.realmatch.com (matches you to jobs)
Entire Top 10 employment site list here:
http://jobsearch.about.com/od/joblistings/tp/jobbanks.htm
Thank you so much for the very informative article. I want to tell a little story (for those of you who actually read it. THANKS!) I just recently became CompTIA A+ and Net+ and I am having a hard time breaking into the IT world of employment. I know that my first minor hang up is that I am female. This might not be the case in a huge city but where I am from this is the hardest thing to overcome in a male dominatated industry. I am learning that being a good social networker is the key to being part of this industry. I also would like to learn more about Linux and UNIX. So, thanks again for the information. BTW, Sharron.. Thanks for saying what I have been thinking for sometime now.
This is a very good article. I try to join your sessions every Wednesday–and find them very informative. I, also, believe that the internet is the way to go. The advice you have given is what people need to do to survive. Keep up the good work.
Not a bad article. I would add a word of caution about buying gold, though.
Right now, with all the uncertainty, gold seems like a comfortable investment, but it isn’t without risk, no matter what the TV ads tell you.
The value of the dollar is low right now, but it has been rising recently, even as recently as today. A rising dollar means falling gold prices. The rest of the world is recognizing that much of their economies is driven by the US economy, so it isn’t entirely clear that a US recession means falling dollar values.
Probably some position in gold is a good idea, but be careful about just how deep you get in. Probably the downside risk isn’t as great as some other investments, but be aware it isn’t zero, either.
(By the way, as a fellow geek, I can claim no special competence in investing, so take my comments as worth what you paid for them.)
“The rest of the world is recognizing that much of their economies is driven by the US economy.”
The rest of the world has known for years that the U.S. economy has a ripple effect on their economy – it’s the U.S. that doesn’t quite realize it.
i’d say its the U.S. gov’t that hasn’t realized. since we stopped being a republic and started being a democracy (i.e. we really don’t vote for president, we vote for people to vote for president) we really lost power, so really it doesn’t matter what the people of the U.S. know or don’t know. *sobs* and i didn’t even vote for these people…i picked the wrong time to turn 18 XD
Interesting article I have to say so myself.
It is very important for every individual, not just techs, to pick up new talents. An individual who knows more, who can perform more, gains more. Within these challenging times, you will have to thank outside of your comfort zone. Even as a techi myself, I’m learning to invest in stocks, join other organizations that have online businesses, and soon, invest my time into business management. You have to think outside of the box.
Also, social networking is very essential if you use it right. I’ve joined a couple of social sites as well as a tech site for It professionals to interact with other IT professionals to ask questions and answer them. So get involved and say whats on your mind.
I do like this article and hope David Risley writes more.