KnowHow Founder Bushy Martin says we need to remain optimistic, ‘spend to mend, save to pave, and invest the rest’ to reverse the current recession in Australia.
In a recent live ‘Bush Bite’ video on Facebook, Bushy Martin said we need to learn from history and adopt an optimistic view in order to prosper through tough times.
Bushy believes the biggest lesson we need to learn from past recessions and depressions is to avoid the ‘instant’ change from a positive to negative mindset.
“What happened in every case in the past is that our thinking changed overnight. We went from optimism about the future to pessimism very quickly, and that pessimism pretty much drove what happened from that point on,” Bushy said.
“So we need to be very careful about how we see the future, how we think about the future, and then how we react to the future.
“If we continue this pessimistic view that the media is drowning us in, there’s no doubt that the downturn that we’ve been self-imposed in will quickly become a recession or a depression if we don’t take action about it.”
He said once people flip from an optimistic to pessimistic approach, they are deterred from spending. This becomes a catalyst for catastrophic financial impacts on the economy.
“Our less spending is someone’s less income. So if we spend less prices go down, which means that businesses have got to cut costs, cut incomes [and] also retrench and sack people. And we get into a negative spiral situation … and before we know it, we are in recessionary and/or depressionary times,” Bushy said.
“The flip side of that is to adopt an optimistic view of the future and act accordingly, just as we have done over the last 28 years of prosperity that we’ve currently enjoyed.”
Bushy encouraged listeners to follow three important principles to reverse the recession. These are ‘spend to mend, save to pave and invest the rest‘.
“It’s spend to mend the economy, save to pave the way for our future by keeping some of that money aside and then investing the rest to secure our long term future as we go,” Bushy said.
If we continue to spend we will be able to prop up our businesses, maintain incomes and make a huge difference to the economy.
“Don’t go from spending every cent that you’ve had to spending nothing,” Bushy said.
“That’s the big risk here, because the government has put a lot of stimulus money into the economy in the hope that we will continue to spend, because that’s going to sustain our income, sustain our businesses and allow us all to move through this.
“If we’re stashing it under the bed in the fear that something’s going to happen, what we think about is what we’re going to bring about.”
Finally, Bushy asked listeners to consider which path they’ll take in the short-term future.
“We are at a crossroads, so I am going to challenge you to decide whether you are going to be an optimist or a pessimist,” he said.
“What we do individually and what we do collectively from this day on will determine whether we end up in a depression or whether we come out of the downturn and climb back into prosperous times. It’s up to you. It’s up to me.”
Listen to the full Bush Bite video on Facebook below. Want to know more? Bushy talks more about reversing the recession here.
KnowHow founder Bushy Martin shares regular, live ‘Bush Bite’ videos on his Facebook page sharing tips and tricks to cut costs, boost your savings and take advantage of opportunities in property. Connect with Bushy here.
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