In short, international turbulence, inflation, energy-supply worries, foreclosures of mortgage because of turbulent times.
The effect of these economic and financial hard times to most people are too well-known. Poor purchasing power. Lack of employment. Limited income. As a result, the feeling of hopelessness.
What shall we do? How do we cope and survive in these hard times?
It’s about time to review Peter Drucker’s recipe for managing in hard times. Peter F. Drucker (November 19, 1909 – November 11, 2005), was the guru of management, the man who was the creator and inventor of modern management.
In hard times, Drucker pointed out in the middle of the earlier recession, the balance sheet is more important than the income statement. Financial strength – liquidity and solvency – becomes much more important than earnings.
In short, according to Drucker, it is necessary to have enough liquid resources to keep going, if only on an austerity basis.
This means buying only to meet our needs, not our wants. This means spending money for what are essentials and not on luxuries. This means getting extra job, or sideline, or moonlighting.
In summary, turbulent times call for thinking out of the box, making a paradigm shift, to take advantage of opportunities.