11 Lessons in 11 Months

Save for a rainy day

If nothing else this year, individuals and businesses should have learned that it’s always important to have some savings, because you never know when the it’s going to rain. Sure, there were signs that 2009 would be year of the recession. But did you know?

In looking at those that came out of the recession the fastest, China once again gives us some valuable lessons. The country has an average personal savings rate of about 30%, which is followed closely by other Asian economies. In the United States, that number usually dwindles between 0%-5%. In the UAE, one survey conducted in September said that 47% of respondents were planning on saving a greater percentage of their income in the next six months. Something to consider in 2010...

Keep clean!

Swine flu, bird flu, SARS...in the interconnected world of the 21st century, everyone needs to do more to maintain hygiene. Every year now there’s some international scare. What did we learn from 2009? Well, we obviously weren’t doing enough before. Let’s see if we can start the new decade off without a new epidemic.

The water is risings

The strongest environmental shifts of the last decade have affected coastal cities more than anyone else. From typhoons to flash floods, weather patterns are causing some serious damage to the human village. Once again in 2009, Southeast Asia was the staging ground for nature’s wrath. As a responsible global citizen, don’t forget to recognize how your own actions contribute to climate change, and how your charity can save hundreds of lives in times of crisis.

There’s more to life than money

In times of depression, the most important thing to do is remember what you have, and realize that there are always others in a worse position that yourself. Chances are if you’re reading this that you’re still living better than 80% of the people on this planet. Success isn’t measured by how high you can climb, but how you get up after a fall.

Approach a giant with caution

If a bank is too big to fail than it’s too big. We heard this a lot in 2009, but we also learned that many of these giants are going to stay alive in the upcoming year. It’s unfortunate that it’s these irresponsible financial institutions are the ones that receive government bailouts, but that won’t be the case for long. The lesson for 2010; don’t put all your eggs in one basket. Next time the taxpayer may not be there with a safety net.

Support the little guys

While there’s nothing wrong with economies of scale, there are a LOT of benefits to supporting local businesses. Invest in your neighbour, purchase from a local grower, and keep your money with the smartest, not the biggest business in town. You’ll be doing a lot to save the environment. You will be supporting the kind of entrepreneurship that encourages industry innovation. Plus, by investing in your own community, you’re likely to see more of the direct benefits.

You can never know where the bottom is

You’re welcome to guess but you’ll probably be wrong — several times. Keep this in mind and you will be more likely to respond quickly to a change of tide, whether that’s in your personal or professional life.

Look to mass media for a perspective, not truth

The news media went through some incredible changes in 2009. The drop in print advertising—among other things—has forced many newspapers throughout the globe to shut down. Other media sources have had to skim by, often having to produce more content with fewer resources. Unless new business models can provide media with the funding needed to conduct thorough, investigative work, there will be fewer and fewer outlets offering the hard news that you may have once expected.

Invest in yourself

If you thought your career with Merrill Lynch was secure, by now you’ve learned better. The first to get cut are always the ones who can be easily replaced. Don’t be that person. Keep on getting educated. Learn a new language. Take on extra responsibilities. Everything you can take on now will pay off when it comes to the next credit crunch.

Instead of thinking about what to pull out, see if there is more to put in

They say that to every challenge there is a silver lining. One bank fails and another bank must rise in its place. For every foreclosure there’s another house on the market. This isn’t to say that you should necessarily try to profit from the losses of someone else, but look for the opportunities that come out of chaos. If the ship is sinking, you might as well save what you can and be the one build the replacement.

Make a plan and be proactive

Life seems to be full of things that we can never find the time to do. But how many evenings do we spend just lying on the sofa or feeling bored? Identify ten things or people that you'd like to allocate more time to, and then every month on payday, sit down and plan how you're going to make sure it happens that month.