Four Seasons of the Economy

Understanding the Natural Economic Cycles

money_bagThe business philosopher Jim Rohn repeatedly preached about the natural cycles of the economy – and that they matched the four season in nature in some ways.

If we could be aware of these cycles and behave accordingly we could maximize opportunities and minimize losses.

At the Get Rich Slowly blog William Cowie makes the same observation in some interesting detail:

Getting rich slowly is built on these four commonly understood pillars:

  • Get out of debt (and stay out of debt)
  • Find ways to earn more
  • Spend less than you earn
  • Invest the difference

Despite the fact that many people followed those four guiding principles during the Great Recession, some “got poor quickly” instead. I believe that is because there is something else to know about the economy and how it affects our finances. This post is the first in a short series explaining what I understand about the economy and its seasons.

I believe that, if you grasp the concepts presented here, it can help you avoid some of the financial hardships recessions bring. More than that, though, it is also possible to benefit from opportunities you may not have recognized in the past. For example, my family’s net worth tripled in the Great Recession using the understanding of the four seasons of the economy, despite some setbacks and other opportunities I missed out on. These concepts don’t replace any of the four pillars mentioned above; they simply open our eyes to see opportunities we may have missed before…

Read the rest here:

Understanding Economic Cycles: An Introduction by William Cowie posted on Get Rich 04.28.15.

The four seasons of the economy are real. They can be observed and measured. Understand them and you can use them to your advantage. Ignore them at your peril.

Learn how to manage your money, eliminate debt and build wealth in my book, Your Financial Success.

Wishing you well,

Daniel R. Murphy
Educating people for building wealth, adapting to a changing future and personal development.