Occasionally, life throws us curveballs. Whether it’s a global economic shift, a financial setback, or an unexpected disruption, challenges are inevitable. In times of uncertainty, though, it’s easy to feel overwhelmed and wonder how things can possibly get better.
However, even in the toughest moments, there’s always the potential for resilience, momentum, and even success. The key is understanding timeless principles that help successful people navigate downturns.
I recall once stumbling upon a fascinating article that shared “10 Common Millionaire Habits.” The tips aren’t just for the ultra-wealthy; they’re basic principles anyone can employ to boost their financial health. As someone who has built wealth over time, I’ve seen these principles in action, and my own insights will help you navigate whatever challenges lie ahead.
So, let’s check out these seven smart money moves right now.
1. They Look for Opportunity
This is a point that resonates deeply with me. In the face of widespread difficulties, it’s easy to focus solely on the problems. However, history shows that even in periods of hardship, many individuals and businesses not only survive but actually thrive. They aren’t “cheating the system” or exploiting others. They’ve instead identified the possibility of making money, adapting their services, or filling new needs arising from the changing environment.
This phenomenon demonstrates a powerful difference between two core mindsets: the abundance mindset and the scarcity mindset. When faced with challenging circumstances, the scarcity mindset sees only limitations and despair. For those with an abundance mindset, however, opportunities always exist, even when circumstances seem bleak. In other words, it’s about seeing potential where others only see obstacles.
2. They Focus on Identifying and Solving Problems
Entrepreneurship revolves around this, and it’s a cornerstone of financial stability. People who succeed, especially in difficult times, understand what people are going through and then find or create solutions.
Think about how certain services and products thrive during disruptions. Whenever people encounter new constraints, innovators fill the gap. You may have noticed that remote work tools, online learning platforms, or delivery services have increased in popularity during global events over the last several years. The reason why these solutions have thrived? They directly addressed immediate, widespread issues.
For example, an old friend of mine runs a business that helps professionals develop new skills. He pivoted when traditional training methods proved difficult. With limited in-person interactions, he identified a problem and developed highly effective online and hybrid training programs. In overcoming this evolving problem, he not only sustained but also grew, demonstrating the importance of adaptability and problem-solving orientation.
3. They Remember That Everything Is Negotiable
As many people experience anxiety when asking for something, this one often causes discomfort. In business, and in life in general, I’ve learned that everything is negotiable.
When dealing with a service provider, landlord, or bank about a loan, remember this simple truth: the worst thing they can say is no. That’s all there is to it. If you call and explain your situation calmly, the worst-case scenario is a no.
If you don’t ask, you’ll never get a “yes.” Financially savvy people know that asking is the first step in negotiating. Since they understand that every conversation holds the potential for a better outcome, they aren’t afraid to inquire about terms, rates, or payment schedules. In uncertain economic times, many businesses and institutions are more open to negotiating to retain customers or resolve disputes.
4. They Inventory Their Assets and Strategically Manage Cash
In the original article, millionaires were told to inventory their assets and sell for cash. Although selling off assets may not always be the first step for a person with significant wealth, inventorying assets and managing cash are universally important.
Knowing precisely what you own and where your money flows is essential. With budgeting apps or personal finance software, you can see how much money you have, where it is, and what you’re spending. They can alert you to forgotten subscriptions or unexpected charges, which can significantly impact your cash flow. Having a complete understanding of your financial situation is a decisive first step toward resilience.
When it comes to “managing cash,” an established millionaire might shift investments to more liquid positions. Still, this advice is especially pertinent if you’re looking to free up capital or better manage expenses. When you’re facing job uncertainty or rising living costs, you’d be smart to take an inventory of items you could sell for quick cash. Anything from unused electronics to collectibles can be included in this category. Don’t overestimate their market value. If you don’t know what you have or its value, you won’t have many options.
5. They Draw on Their Networks
The old saying goes: “Your network is your net worth.” Building and leveraging a strong network is one of the most crucial principles of long-term success. Often, networking is viewed as self-serving or sleazy — just schmoozing for what you need.
However, true networking isn’t about taking; it’s about giving. By providing value, support, and help to others, one builds genuine relationships. It’s far more likely that someone will reciprocate when you provide solutions, offer useful insights, or assist others consistently.
The bottom line is that your network will not last if you are only a “taker.” By connecting people, offering advice, or just listening, you can build a robust network that can provide invaluable support, opportunities, and even emotional resilience when times are tough.
6. They Prepare for the Turnaround (or Next Phase)
A financially resilient individual understands that challenging times are frequently temporary and cyclical. As soon as the economy turns, they prepare for the next phase. When markets are down, this might mean purchasing assets on sale or investing at deeply discounted prices. As a general principle, smart individuals see opportunities when assets are undervalued or economic shifts present unique buying opportunities.
Among the most important actions that financially savvy people take is to maintain or increase their liquidity. The goal isn’t to hoard, but rather to have capital ready to deploy when opportunities arise – when prices are low or when new ventures emerge during a market recovery or shift.
Besides holding cash, preparing for the next phase also involves gathering intelligence. This means actively engaging with other successful individuals, asking questions like;
- “What strategies are you implementing for the future?”
- “Are you making specific investments given the current trends?”
- “What steps are you taking to adapt to the evolving landscape?”
As the economy evolves, they ensure they’re ready by taking notes, strategizing cash positions, and reinvesting in their skill sets and businesses.
7. They Are Constantly Learning About Money and Wealth Building
Last but not least, successful individuals are “constantly learning about how money works.” While someone who has achieved significant wealth likely understands the fundamentals of finance, the core point is about continuous learning and adaptation.
I consider myself to be a constant student. Despite my experience, there are always new strategies, investment vehicles, or economic shifts to understand, especially with today’s rapid technological and financial developments. In my view, investing is less about learning “how money works” than about “how to continue building wealth in a changing environment.”
No matter what your current financial situation is, this principle is fundamental. Developing your financial literacy, managing debt effectively, or building wealth requires an open and willing attitude. Get inspired by reading books, listening to podcasts, finding mentors, or studying online. The financial landscape is constantly changing, so you need to learn to stay on top of it continually.
Building Lasting Resilience
In light of all these smart money moves, I think the most important takeaway for me is to recognize that opportunity exists regardless of the situation. You might find undervalued assets to invest in, as some do, or you might prefer something more accessible.
Getting a new skill, listening to a cutting-edge podcast, finding a mentor, enrolling in a professional development course, or even pursuing further education relevant to an in-demand field could be your next opportunity. Increasing your net worth or, perhaps more importantly, your self-worth is always possible.
The key is to identify the next step in your action plan. Are there any wealth-building tips or learning opportunities you need to pursue next? Discover it, take action, and improve your financial resilience by navigating challenges and building lasting assets.
FAQs
Is “looking for an opportunity” realistic during widespread economic uncertainty?
Yes, it is.
As markets shift even during downturns or uncertain periods, new needs emerge, existing problems become more acute, and existing problems are exacerbated. When you have an abundance mindset, you will be able to recognize these shifts more easily. In tough economic times, industries that adapt, innovate, or offer essential services often thrive.
How can I “negotiate everything” if I’m not good at confrontation?
You don’t have to negotiate confrontationally. It’s all about polite communication and polite inquiry. Start small, such as asking for a discount or clarifying terms. It’s okay for them to say “no,” but it can save you money and give you flexibility you didn’t know was possible.
What kind of “assets” should I inventory if I’m not wealthy?
Everything you own that has value is part of your assets. Depending on your situation, this might include old electronics, unused gift cards, and collectibles, as well as your skills (your human capital). Using budgeting apps can help you track your assets and liabilities. In a pinch, knowing what you have and its potential value gives you more options.
How do I “draw on my network” without feeling like I’m asking for favors?
By giving value first, true networking builds relationships. Be a supportive listener, offer guidance, share insights, or even make introductions. In times of need, your network naturally becomes a source of support when you give without expecting immediate reward.
How can I “prepare for the turnaround” if I don’t have extra cash to invest?
“Preparing for the turnaround” goes beyond investing money. As well as investing in your knowledge, it’s about investing in yourself. By learning new skills, improving your financial literacy, building a stronger network, or seeking mentorship, you can achieve this. If you lack capital to invest now, these non-monetary investments can position you for when the economy improves.
Image Credit: Dziana Hasanbekava; Pexels
