by Nicole Long

Created on: March 19, 2009

We all are watching the state of the economy unfold before our eyes. You can't turn on any news channel without hearing about unemployment rates, foreclosure rates, and stock market losses. It seems to be the only news stories running are those concerning the economy.

Some people are lucky enough to have not experienced any of the pains associated with the downturn of our economy. For the majority of us, however, the state of the economy has hit home in one way or another. We ourselves have been laid off or know a family member who has been. Maybe a friend has lost their home or a parent has seen their retirement account all but cut in half.

The reality of the current state of the economy is sobering for most. For those who lose their job, it can mean falling behind on bills and being able to barely afford life's necessities. Hopefully when you lose your job you are eligible for unemployment compensation. This by no means covers all bills, but it certainly can help with necessities. The task of finding a new job is all but impossible and certainly can be very depressing. For those who still have a job, you go to work everyday praying you're not next. You go in early, stay late, work harder. Whatever it takes to separate you from the next worker. You don't do extras. You plan a paycheck ahead in case it's your last. What used to be discretionary income becomes an emergency fund or pays off a bill just in case.

Foreclosures continue to rise across the country. Hopefully, you aren't among those being claimed by the system. Many homeowners entered into loans that they couldn't afford. The lenders knew this and continued to lend to customers that maybe should have been turned down. Now the banks that hold the loan can't even get their money back by foreclosing and selling the house because of the current market prices. The "bubble" has burst, finally.

For those that have experienced a near 50% reduction in their retirement savings, the loss is just as devastating. You work your entire life and do the right thing only to see it wiped away. Hopefully there is some time left to recoup the losses. It may mean a few more years of work, if you still have a job at this point, but at least you have something saved. Nothing is certain in the stock market. Historically though, the average investor will be able to recoup these losses in the long term.

In our current economic climate, nothing is certain. The only thing that is certain is the spirit of the American worker. We don't give up. We refocus, retool, and rework. Refocus your energy on what your priorities are. Need to spend more time with the family? Do it! Retool your skills. Did you always want to learn photography? Take an on-line course and learn a new skill to add to your resume. Rework what you know already. Maybe your skills can be applied doing something completely different. If you find yourself caught up in the downturn of the economy, embrace it. This may be a perfect chance to try something new, start a business, or go back to school. Allow yourself to dream. Maybe losing that dead end job was a blessing in disguise after all.

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