ahhhhh yes... economic downturns. How to avoid the downward spiral?
We all know that the current economy provides excellent opportunity for those with good jobs and good credit to get some really good deals right now on everything from clothes to houses. Here is some additional economic guidance from Yahoo! Finance on major purchases.
1. Airline tickets -- wait to buy later.
2. Cars -- buy now.
3. Houses -- buy now.
4. Mortgage Refinance -- wait until later.
However, I protest. If you have a good job and the money... I suggest you spend and spend now regardless of the purchase. It's the right thing to do. Even if you don't get the deal of the century, you will get a deal and if you pay a little more this month than you would next month, at least you are contributing to keeping our economy going.
When no one will pay full retail for anything, businesses that depend on retail mark-up to stay in business are forced to close. Big retailers can afford to do this for several seasons, but what about all of our independent business owners? The world would be so dull without independent business.
A friend of mine recently attended the going-out-of-business sale for Fetish, a landmark upscale Austin boutique that had been in business here for more than a decade. My friend said she was horrified at the hoard of fashion vultures descending upon the once quaint shop in search of deals. Where were these ladies spending their money while the shop burned through their cash reserves and struggled to pay rent? Target, no doubt.
MEMO: Target has little cash concerns and having a neighborhood of "Targets" at the bottom of your street does not increase your property value.
Here in Austin we pride ourselves on our unique local businesses. It's part of what keeps Austin special. So Austinites with good jobs... get out there and spend some money at your favorite local businesses. If these little guys have to close down business... there goes a big draw for our lovely city and our equally lovely economy.
Photo Credit: Thanks to Lee Jordan on Flickr for "Downward Spiral" pic.