Smart Moves and Hedges in a Bad Economy

by Ron Haynes

Crathes Castle Garden
When the economy turns sour, it’s smart to think in terms of hedging your bets. A smart “hedge” concentrates on reducing the risk of negative events by taking an offsetting position or by making plans in the event those negative events DO come into play. There are several smart moves you can make when the economy turns bad, but first let’s decide what’s important. What assets do you want to hedge?

Hedge against the loss of income.

An income producing asset almost always has a greater value than one that doesn’t produce income. In a bad economy, income producing assets will take on even greater importance and your job is probably your single greatest income producing asset right now.

How do you hedge against losing this income stream?
1. Always have a Plan B for your job.
2. Be the person that makes life easier for your boss.
3. Constantly pursue ways to make yourself more valuable through additional training, volunteering for difficult assignments, or mentoring new hires.
4. Keep your resume updated, fresh, and sharp. Consider using a resume writing service to help you polish it.
5. If you have some information that your job may be in jeopardy, be prepared to make a move to a new job should the opportunity present itself.
6. Always be on the lookout for ways to make extra money.
7. Give some serious consideration to disability insurance.

Hedge against the loss of your health.

How do you hedge against losing your health?
1. Eat only non-processed foods, the fresher the better.
2. Get plenty of rest and take a day off at least once per week to just relax with friends and family.
3. Exercise regularly.
4. See an eye doctor (pun intended).
5. Go to the dentist.
6. Get an annual physical and follow your doctor’s orders.
7. Wear your seat belt.

Hedging against a loss is the smartest move you can make in a bad economy. It takes some forethought and some planning, but protecting your job and protecting your health are two of the most important areas of life you should hedge.

Don’t be caught blind sided. Always have a backup plan.

[tags]disability, insurance, hedge, family, job, economy, bad economy, money[/tags]

photo credit: amandabhslater

About the author

Ron Haynes has written 1000 articles on The Wisdom Journal.

The founder and editor of The Wisdom Journal in 2007, Ron has worked in banking, distribution, retail, and upper management for companies ranging in size from small startups to multi-billion dollar corporations. He graduated Suma Cum Laude from a top MBA program and currently is a Human Resources and Management consultant, helping companies know how employees will behave in varying situations and what motivates them to action, assisting firms in identifying top talent, and coaching managers and employees on how to better communicate and make the workplace MUCH more enjoyable. If you'd like help in these areas, contact Ron using the contact form at the top of this page or at 870-761-7881.

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Take a day off “at least once a week”? Really? Let me know which jobs allow that, and sign me up! I could definitely handle taking 1 or 2 days off every week!

Did you, perchance, mean once a month?


Every job I’ve ever had (been working for over 25 years), from waiting tables at Ruby Tuesday, to starting up a struggling lumber company has allowed me at least one day off per week.


Ah, as in “weekends”. Gotcha!

Phrasing made me think ‘one day per week’ off that I would normally have to work; that is, one vacation day/week.


If you find one like that let ME know!
Some hourly positions do allow workers to put in 4 ten hour days rather than 5 eight hour days. Unfortunately, I’m working 5 twelve hour days in my current job … sometimes 6 twelves … last week I worked 7 twelves… rough week. Through tomorrow, I will have worked 18 of the last 19 calendar days.

I need to follow my own advice, no?


I believe it certainly pays to hedge against losing your job. I’ve never understood why people hang around to the last minute when the writing is on the wall at a company. I lost one job several years ago by hanging around too long. Fortunately, I was able to pick up and start my own company out of the ruins. Still, it isn’t the kind of position I want to find myself in again.


I like that you included common sense ways to protect your health. A lot of people worry about losing a job, but it’s probably as likely (or maybe even more so) that we’ll be sidelined by an injury or health issue, which can have a huge affect on earnings.

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