I was asked recently what I thought of the coming year. I firstly replied, “Do you realize that is it already one-twelfth over?” I then added, “I am pessimistically optimistic about 2010.” I think it is going to be a much better year than 2009, though, as I have stated before, honestly, 2009 was a very scary period, but not what I would call a bad year for us. We’ve had worse than 2009, believe me.
But, as for 2010, I am looking forward to an even better year! In a recent B to B Magazine article, John Seifert, the Chairman-CEO of Ogilvy & Mather North America, said, “We are being very cautious this year. We were very tough on ourselves in terms of cost management in the last half of the year. We underestimated the severity of the recession and how long it would continue. We have conservative budgets, and my impression is that clients will be very cautious and determined to beat their forecasts for Q1. Doing well in Q1 will give them permission to spend in Q2.”
While we may never again see the same surge in the markets, home prices, and enterprise spending that we saw during the “lost decade”, the Dow has had more good days than bad, home values in Orange County are creeping up slowly, and it looks like it is going to be a far better year this year than last for some sectors if the I.T. market, among others. With the markets, housing and I.T. making the turn, other industries will not be far behind.
I say I am pessimistically optimistic because while I do have some optimism, I am keeping myself ready for the floor to fall out from underneath us again. I have assured that the rope tied around my waist is as tight as ever and will continue to do so, quite honestly, for the rest of my life.
While I considered myself a fiscal conservative before all of this happened, I would say I am even more one now. This recession has reminded me of those core fiscal principles that we should all live by. Most formidable of them is do not turn your nose up at a job during an up-economy because you will wish you had that job during a down-economy.
Another important lesson I hope to see more Americans live by now and for the rest of their lives is to not create new debt. While at times, we must take on so-called "good" debt when we need to buy a home, or buy a new car, I am personally hoping to get at least 300,000 miles a piece from the two cars that we own now – one at just over 10 years old and one at 8.
By 27, I’d had 9 different cars, two brand new, and seven used, but the one I drive now has been with me for nearly 8 years and I am hoping for another 8 years on top of that. Not having car payments and not taking on new debt by frivolously getting a new car on a whim is something that I do not think I will ever do again. I hope to see America following suit. My next car will be pre-owned off a dealer lot and I hope to be paid for with cash, not financing like all of those Cash-For-Clunckers fiascos that are going to come back and bite people later.
This lesson with cars can be applied to just about anything that we buy. While we should not force ourselves into the “poverty chic” look, having a pair of shoes re-soled at 50% of the cost of a new pair when they look brand new anyway, is a tool I am going to keep in my arsenal, regardless of what the economy is doing. Little things like this all can add up to big savings and even more money to use to make money.
That leads me to the third important lesson I hope people have learned from this downturn. As a nation, we cannot simply spend everything we make on stuff that doesn’t either earn money, or make money, or provide a return on investment. That leaves you with no savings, no emergency fund, and in a heap of trouble.
Remember to work all you can and save all you can during the swingin’ times because you will have a much more solid foundation to stand on when the bad times hit!
B to B Magazine also states that “39% of B to B Marketers plan to increase their marketing budgets this year”, and that is a good sign. Marketing budgets are the first to grow, and the others tend to follow.
So, for now, I remain pessimistically optimistic about 2010. If things change, I am sure you will be the first to know.
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