The BIGG Successs Show
Squirrels, Nuts and Business Cycles
Strategies for buying and selling through boom and bust. Find a written summary of today's show, along with the link we reference at BIGGSUCCESS.COM.
welcome to the big success show today we're gonna talk about squirrels nuts and business cycles the big success show with George and Mary Lynn squirrels nuts and business cycles I tell you what Mary Lynn given what we've witnessed the last couple of weeks here in the States if I didn't know better I think you were talking about Washington and Wall Street there's three different words that we would have to bleep out so well we're thinking about the seasons and here we are we're in the Midwest and falls definitely here leaves are starting to turn yeah and our friends though in the southern hemisphere they're actually just heading in to spring and this is true I think this is the business cycle that we've we've come through this period of time where we've definitely been in a boom time and now we're experiencing a little bit of the bust and that's the way it is with business cycles so that's the business cycle part of it right and now let's get to the squirrels and nuts part of it because you know if you think about it as we're watching the squirrels out there now that it is fall they're hoarding nuts for winter and of course why do they do that well because in the winter time there isn't any food so they've got to get it now so that they have something to eat when it gets really really cold and so the corollary is that for us winter means the bad times the the bust period in the business cycle and you know financial planners recommend that we have an emergency cash reserve of three to six months are nuts right that's right so three to six months of your living costs and of course you know recently it seems like you've seen people say we could have a home equity line of credit to substitute for that three to six months which is sort of the more timeless wisdom that the traditional principle well as we're seeing lately you know it's okay to have a home equity line of credit but you got to make sure your banks there when you need it so that three to six months of emergency cash probably still holds the test of time very well and going back to our whole seasons theme you know businesses experience seasons and most businesses do great and boom times but some businesses actually do better in bust times boy I like the way you said that it sounds like a magazine but you might see it yes yes and the thing is with probably just about every business Maryland we can look at the product portfolio we can find certain products certain services that probably will do better when the economy is down so for example maybe you've got an inexpensive item that'll do better now because people don't have as much money to spend or maybe you have a product that can really help people save money that's right so that could sell really well right now absolutely and also while we're talking about businesses the business equivalent to the squirrel with the nuts is our working capital we got to make sure that we're shoring up our working capital be very careful about the money we're spending and try to keep that cash reserve that emergency reserve in hand and coming up seasonal strategies for us as consumers today we're talking about Maryland I just have to say it because I didn't get to earlier we're talking about squirrels nuts and business cycles what we want to talk about now are some seasonal strategies as consumers a great strategy is to buy out of season I don't want to do that you know for those of us who are approaching fall and winter now's a great time to buy a new mower if you know you're going to need one next season you don't want to buy it in the summertime because that's when everybody's looking for one right so now we're buying mowers not snow blowers right mm-hmm in certain parts of the country and that's the thing is if we think about it and and can time our purchases appropriately we can get some really spectacular deals buy when the demand is down because businesses will lower their price on the other hand though some things are better to buy in season you know for example when it gets to be Thanksgiving time you're gonna be able to save big bucks on turkey that's right because stores are using those turkeys to get you in their stores that's what everybody's looking for right now so you have to be cognizant of whether things are best to be bought in season or out of season and actually we've got a great link from smart money on our site today at big success calm and it's an article that tells you about the best time to buy everything very helpful resource but here's the here's the bottom line here's the point if we can do more things by planning and less on impulse it seems like we're always better off so plan those purchases and save yourself some big money you can get a written summary of today's show on our site at big success that's big with two g's success calm while you're there sign up for our free big success weekly to get the tips and tools you need to be a big success next time we ask are you a victim of your own success is that what happens when you have too many nots until then here's to your big success the big success show at B I G G success calm (birds chirping)