Economies of countries the world over experience challenges every now and then. Typically, they fluctuate between periods of strong and weak growth, known as economic cycles, which are characterised by unique set of events. During an economic boom, there are high levels of economic growth.

Consumer confidence is strong and consumers have a more positive outlook on the state of the economy. Conversely, during a recession, there is rising unemployment, a sharp decline in business confidence and profits. This eventually impacts negatively on Gross Domestic Product (GDP) leading to high levels of inflation, increased government borrowing and rising cost of living.

Not too long ago in 2011, Ghana was ranked the fastest growing economy in the world with a record high growth rate of 14 per cent, making us a lower middle income country. This was a period of economic boom for Ghana. Today, based on the concept of economic cycles, the same cannot be said as Ghana is now suffering a reversal of fortunes.

Our economy has seen some challenges in recent years leading to all key economic indicators pointing downhill. According to The State of the Ghanaian Economy Report, – Institute of Statistical, Social and Economic Research (ISSER), the cedi lost 40 per cent of its value against the dollar in the first eight months of 2014, thereby becoming the world’s worst performing currency.

Inflation, which stood at 16.5 per cent as of February 2015, was at a four-year high, leading to rising public sector costs, increased government borrowing and weakening of the cedi, compared to all our major currencies.

All this notwithstanding, a down economy can also present great money-making opportunities to those who prepare and are willing to take a chance at being successful.

For any individual, the best way to successfully make money in a down economy is to take control of your own personal finances by developing smart financial habits. Some of the key principles worth considering and practising in these challenging times include:

Drawing up a personal monthly budget During an economic recess, one needs to be extra prudent when it comes to spending. In order to control ones spending habits, it is best to set up and stick to a personal monthly budget. This way, you know exactly how much money you have and how much you can afford to spend.

When you realise you are spending more than you earn, you have to adjust your budget accordingly by cutting out things you can live without to save yourself some cash.

Opening an investment account Given the current state of the economy, it may seem scary to open an investment account. However, when it comes to investing, it’s better late than never. The magic of compound interest in investing pays off huge returns in the long run.

It is also very important to diversify your investment portfolio as different asset classes perform differently depending on the prevailing economic conditions. For both old and beginning investors, it is an ideal time to invest in the *“MoniMac” product and also consider the purchase of some good stocks as most share prices on the Ghana Stock Exchange have fallen.

Add value to yourself It is an established fact that a lot of people get laid off during recessions. Thus, to safeguard your job and avoid the unfortunate and painful process of getting laid off, you need to add value to yourself and make yourself indispensable within your organisation. You can do this by specialising and getting certified as an expert in your field of work.

Also, going over and above your scope of responsibilities within your organisation can help you keep your job even when the going gets tough.

Furthermore, if you have any ideas that can help your company cut costs and save money (such as using recycled paper, turning off lights and all electrical gadgets after the close of work,etc), suggest them to management as employees who can help solve problems and help save money during tough times are usually retained.