Who Creates Your Economy?

Do consumers around the world create the economy? Or does the news we hear create the economy we experience?

I’ve been thinking about this a lot lately, especially since putting my house up for sale in June. Why is it that when the economy is sizzling home buyers feel positive and go out and buy? But when the economy slows potential home buyers step back and allow fear to grip them, even if the economic slow down hasn’t affected them?

A few years ago when the housing market was roaring and seemingly unstoppable there were some lone voices touting that it was only a matter of time before the “housing bubble” would burst. But, these voices were few in comparison to the din of positive ones, so buyers continued to buy and sellers continued to sell with ease.

The negative voices started drowning out the positive ones when banks began showing losses in the subprime market (loans to buyers with sub-par credit), which caused buyers to hesitate and stand on the sidelines. As buyers withdrew from the market prices dropped based on oversupply and decreasing demand. As values sank banks began reigning in many of the programs that had enabled a majority of home purchasers to buy, cutting another segment of buyers from the market and compounding the problem.

While this is an over-simplification of what happened, I believe the repetition of the message that the real estate market was in a melt-down reached a saturation point in the consciousness of consumers causing the market to come to a halt. When a vast number of buyers stopped buying – home prices tumbled – affirming the ‘bubble’ theory. So, if we consumers contributed to creating this stalled real estate market can we UN-create it?

Consumers did UN-create for a while. The vicious downward cycle was interrupted briefly with the home-buyer’s tax stimulus from January 1, 2009 through April 30th, 2010, when it expired. During this time we saw appreciating prices and homes selling more quickly than they had in the previous two years.

But what really changed during that time? Economically there were no huge increases in job growth, nor did the economy grow significantly, so what happened? Was it the $8000 tax credit? Yes, and no. If you think about it logically does $8K have any long lasting impact upon a person’s life? Not really – so there has to be more to it, but what? – Buyers simply changed their minds. They decided it was a good time to buy, and the home-buyer’s stimulus was the carrot that led them to market.

In order to release the brakes on the economy, we have to realize that our buying habits do affect the economy tremendously. We also have to understand that our emotional reactions drive our buying habits. Only when we begin to feel confident about the course of our own lives will the economy begin to perk-up. So, to UN-create this economic slow down we first have to work on what’s going on within us emotionally.

To grease the wheels of your inner economy and get it going again try working with these 5 tips:

1. Be grateful for what you have. The only way to begin to reverse this economic contraction is by first recognizing what’s working in our lives, no matter how small it may be. Do you have business/clients to work with? Be grateful. Even if it’s being able to pay your bills this month – commend yourself. When we stop replaying the messages of lack and limitation, and acknowledge what’s going right in our lives instead, we begin attracting more positive circumstances.

2. Acknowledge the difficulties and challenges you’re facing, and take whatever action is necessary. Make a list of all the obstacles preventing your inner economy from flowing. Decide on an action plan for each one – and then execute them. Could you sell some unneeded things on Ebay? Or would a part-time job do the trick? Be creative – there’s always some solution.

3. Don’t wallow in the negativity. Endless worrying will not solve any problems. Repeat affirmations about about having abundance, and feeling safe and secure like the ones Louise Hay has in her books. Visualize yourself living your ideal life right now. Whatever you do – get the negativity out of your head fast before it has a chance to put down roots!

4. If you have the money to buy something you’ve been wanting – do it. Don’t allow the fear-based headlines to hypnotize you. If you’ve been saving up for something and can afford to buy it now – by all means buy it. Spending some money is the perfect way to grease the wheels of your inner economy – something my friend Rob White from Mind Adventure calls “sowing and reaping.” You have to sow the seeds (by spending/investing) before you can reap the bounty of the harvest(return on your investment).

5. And last, do something you enjoy, even for an hour a day that distracts you from constantly dwelling on all this depressing news. Don’t put happiness off for when things get better. Make time to do what you enjoy – now. Take that salsa dancing class. Go out in nature and walk. Invite friends over and cook a fabulous healthy meal. Go to a movie. The point is to put some joy back in your life by becoming a joy magnet. You can’t attract joy unless you already feel joyous – like does attract like.

I’ve decided that I do create my own economy and that it originates from within me. If I allow myself to be consumed by fear I’ll surely make wrong choices based on panic and probably end up creating the fearful circumstances I’m trying to avoid. I know for sure I’ll overlook opportunities. I believe that if I’m calm I’m more apt to come up with solutions. So, I’m choosing to be happy in the now, and focus on what’s working in my life rather than on what the headlines say.

Did you overcome difficulties by choosing to focus on what was working rather than what wasn’t. How did you turn your frown upside-down?

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  1. Excellent post. This is why I don’t watch the news that much.. it’s so full of pessimistic and negative stories that affect your daily actions. I feel it’s best to ignore most of you what you hear, and go with the fundamental truths that have been with us: save money, and cut your spending. Many of us spend way too much on stuff we don’t need in order to make us happy. The whole economy revolves around satisfying ourselves/instant gratification.
    Henway recently posted…How to cope with acneMy Profile

    • Henway,
      ‘Welcome to my blog. I couldn’t agree more. I watch/read the news but only skim the most negative articles. I don’t want to be hypnotized into panicking over things. Thanks so much for visiting and commenting. It’s a pleasure meeting you.

  2. A very good and wise question Angela. I have stopped reading papers and watching news as I think the media influence supresses our natural intuition. And talking with friends doesn’t help if they also are mass connected through TV and the like. We need to listen to our own instincts more as they aren’t false or under a spell from society. That’s what I’m trying to do and so far so good but it’s work in progress.
    John Sherry recently posted…Go On Have A GoMy Profile

    • Hi John,
      I couldn’t agree with you more. Media does create what we think about, and how we think about it. There is no doubt of that.
      Absolutely, we need to listen to our own instincts more!
      I’m glad you’re doing that as best you can. It’s hard to be completely insulated from the news though.
      Thanks so much for visiting and commenting.

  3. Angela-
    “Who creates your economy?” is excellent. Hits upon everything going on in my work life (since our work lives are similar!) and also my personal life. I have been “greasing the wheels of my inner economy”, and have used some of those ideas, but I think I’m going to try and complete your list. The one hour a day break is one I have been using, and it does work/help. I am also going to have my wife read this post, I think it will help her tremendously. I knew you were a great writer, I just wish I knew about your site sooner!
    A Evan Kamaris recently posted…Burn the Koran On 9-11 Are You MoronsMy Profile

    • Hi Andy,
      So nice of you to visit here! Thanks so much for your lovely words too! I’m so glad to hear you’re going to try to use all of the tips in the article. It does work – we just have to keep at it! Let me know what happens after you grease the wheels of your inner economy!
      Good luck to Andrea on her new job too!
      Thanks so much for stopping by and commenting.

  4. Hi Angela

    This is an excellent question. Who ever creates it is not a real happy person so the idea of greasing the wheels of your own inner economy really resonates with me. Riches come from within so brightening up the way that we look at our economy will have a very positive impact
    Marion Anderson recently posted…Financial Freedom – What I want my daughter to know about moneyMy Profile

    • Hi Marion,
      I’m glad you enjoyed the post!
      Yeah, I like that: whoever creates the economy (right now) is not a real happy person – lol!
      So right – and I so agree – Riches come from within.
      Thanks so much for stopping by and commenting.

  5. Nice blog

  6. We tend to let fear affect us in every decision we are actually making. Just like me, I can’t make one step forward to accomplish my goals because I tolerate fear from my past experiences to be cautious with my decision. It’s really something that I need to overcome or else, I won’t see myself to finally achieve the financial freedom I want.
    Cole Stan recently posted…Anniversary Gifts for Men – Rock His World with These Romantic GiftsMy Profile

    • Hi Cole,
      How nice to meet you!
      Yes, many of us are pretty fearful creatures. We haven’t embraced that we are in control of our experience!
      The Universe mirrors back to us exactly what we believe, so if we’re full of fears – that’s what we will experience in our lives. You are right to say that you – and so many of us – need to overcome our fears!
      Everyday as I brush my teeth I look in the mirror and affirm – the Universe supports my every desire and I am happy, healthy and prosperous! Try it!
      Thanks so much for visiting my blog Cole. It’s been a pleasure chatting w/you!

      • Well, we don’t have any other choice but to face our fears no matter what because once we stock ourselves on to that, we can’t be somebody. Fear is just a result of a problem that we must learn to handle. Thanks for your warm welcome into your blog!
        Cole Stan recently posted…Be Thoughtful And Give Unique Personalized Wedding GiftsMy Profile

        • Hi Cole,
          Yes, this is true. We need to face our fears and then go forward anyway.
          It’s my pleasure to welcome you to my blog. Thanks for commenting Cole.

          • Hi Cole,
            I’m so glad you’re enjoying my posts.
            It’s a pleasure to connect with you Stan!

  7. Hi Angela,
    We put our home on the market 5 months ago and it looks like we have a buyer. We did come down in price twice. The current purchaser tried to get us down another 11,000. We said NO! At the same time we gained a greater appreciation for our home and everything in it, without trying. We sat around talking and ended up listing each thing we’ve improved and upgraded in it. We decided that night if nobody was giving us our current asking price we were staying put. Three days later the same people called and accepted our current offer.

    I had a friend tell me that not only was our home wonderful and all in it but it had an ambiance to it. We’ve been told that about the 3 homes we’ve sold in the past and about our current cottage in Northern Michigan. I think what she meant by ambiance is “energy.” And I do believe hubs and I have great energy and when you step into our home people feel it. (We have nothing fancy.)

    Oh and one more thing these people want our furniture. Said no way! I have no desire to get new furniture. They can get their own new stuff. I’m in to simplifying. So keep your energy high and your home will sell in no time;) I’m blessing it and you with love and light!
    Tess The Bold Life recently posted…Naked in Eden with Robin EastonMy Profile

    • Tess,
      Congratulations! 5 months….oh boy. I’m just beginning my fourth. But, that’s great. Is this a home in AZ, or MI? I’m sure you home has great energy. We do create “energetic fingerprints” that pervade our homes. They wanted the furniture? What did they think they were buying the model home? Buyers want everything today. I have no intentions of buying any new furniture either.

      I had someone make me an offer a few weeks back that was $60K less than my asking price. Can you imagine? A brand new kitchen with granite countertops and two new bathrooms, plus central air I put in? I was flabbergasted. I countered, but she wouldn’t budge! People really expect you to give your house away, as if your desperate.

      I’m having my 55th showing tomorrow! I’ll take your blessing and then some! Thanks Tess, you’re a doll. I’ll keep you posted!

  8. Good points, Angela. I was in real estate for 2 years, 2006-08, and so many buyers had the money but were afraid…of what? They didn’t know. Some were afraid that the value of the house would keep going down and down and they’d have no equity etc etc. I was thinking “Well do you need a house or not? That’s the question” though I didn’t say it quite like that.

    I bought my house 3 years ago just because I needed one and was able to afford it. Short term–whatever. No equity at all and I wouldn’t make anything if I sold it right now. So? It’s a house, with a yard and what I needed. Long-term, I got a darned good price in a very desirable neighborhood with good schools etc. so eventually the value will go up. Either way, it’s win-win.

    Love your philosophy! In my case I really think it’s been working–I haven’t got an extra penny anywhere–and haven’t for awhile–but I am really rich with many things and my hard work is getting rewarded! :)
    Leah McClellan recently posted…Funeral For a CatMy Profile

    • Hi Leah,
      I know exactly what you mean. If you need a house- they buy one! It’s like having a baby. When is the right time? You can plan your whole life around “market.” You just have to live your life!

      Exactly, how I feel I love my home. It’s perfect for me, but right now living outside on NY I’m paying astronomical taxes of $8000 per year for great school, and I don’t have any kids! So, it’s time to scale down. It’s unfortunate it’s not a seller’s market like it was when I found this house 2003, but I have to do what I have to do.

      I’m glad you like my philosophy Leah. Yes, I too feel blessed for all I have, and living a pretty darn good life despite the mortgage market being slow. I have so much more time to write now. And, I enjoy that 10x more anyway.

  9. Angela,

    This is a great post, and helps me recognize that to obtain wealth and abundance in life will require some unconventional thinking and decisions. In this sense, people may have to ignore conventional wisdom and begin to focus on making moves that seem risky for the immediate time frame. They may have to get resourceful and find a route that isn’t explicitly apparent. To push through financial set-backs requires a willingness to delay immediate gratification and keep focused on a long term conviction of abundance. This can hard to do, but if done can prevent people from settling for a life of mediocrity. Thanks!
    Joe Wilner recently posted…6 Steps to Setting Goals that Improve PerformanceMy Profile

    • Hi Joe,
      I’m so glad you enjoyed the post!
      I love how you said: To push through financial set-backs requires a willingness to delay immediate gratification and keep focused on a long term conviction of abundance.
      So well said! It’s the long term conviction of abundance that’s key here!
      I really appreciate your stopping by and commenting Joe!

  10. Angela: Great post. I really appreciate your advice to appreciate the things around you that you already have and not to take anything for granted. I really do believe that if you can maintain an attitude of appreciation, you really set yourself up to have the most helpful and positive feelings that will allow you accomplish more and more. Thanks for the great recommendation and insight.
    Sibyl – alternaview recently posted…One Quick Way to Instantly Improve Your DayMy Profile

    • Hi Sibyl,
      Great to see you! I completely agree with you and believe this with my whole heart.
      If we’re grateful for what we have our lives will flow with the current, instead of against making everything feel effortless!
      I’m so glad you got a lot out of the post Sibyl.

      • I definitely got a lot out of the post so thanks again and thanks for the reply … there is nothing better than flowing with the current :)

        • Hi Sibyl,
          I’m picturing you know in a lovely gondola floating effortlessly toward all you desire in your live! For all you give with your wonderful blog you deserve nothing less! (:-)

  11. I am enjoying your blog. Having “gratitude”, “focus on what’s working”, “choosing happy” — sounds like a good Rx for living well. Thanks for the timely reminder.

    • Hi Marti,
      It’s so nice to meet you~! I’m very happy to hear that you’re enjoying my writing.
      Definitely – living well, living happily and making rest of your life – the best of your life is what I strive to communicate here.
      Thanks so much for adding to the conversation.

  12. My poor little brain can’t wrap itself around the whole idea of how the economy. But I do love and understand the essential point between our emotional reactions and our buying habits and these great tips for going beyond that. Another perfect example of how the micro effects the macro!
    Sandra Lee recently posted…Buddhist teacher warns of impending environmental catastropheMy Profile

    • Hi Sandra,
      To sum up the current real estate economy = over supply! Too many houses, too few buyers and prices sink.
      We have such tremendous power to affect the economy, but our emotional reactions stop us from revving it back up again.
      I would say the micro creates the macro!

  13. Angela, this is timely article! So many people are challenged by their current financial realities and fears. I have to constantly change my financial thoughts as they tend to drift towards panic,and lack. Although my current spending patterns aren’t that different from my normal frugal habits it’s the knowing that I “can’t” rather than choosing not to that trips me up.

    You offer some great suggestions here! I do find that affirmations and gratitude help tremendously. Taking action, including an extra job is also great! Action brings about so many opportunities.

    Our thoughts can change everything and it’s worth the extra effort to align our thoughts with our desired reality – even when we fall off again.
    Aileen recently posted…9-11 How I Relived the Tragedy and Discovered HumanityMy Profile

    • Hi Aileen,
      I know and understand that feeling too. It’s not that you really need anything at the moment, it’s the idea that you couldn’t if you wanted to.
      I think when we move forward we prime the pump for our inner economy to flow. Inaction is the worst reaction!
      We surely live in a world of our own making based upon our thoughts – better to think correctly and live in that world even if it does take some effort.

  14. I’m in PR. So I know for a fact that news creates or dismantles opinion regardless of the reality. I believe firmly that much of what happened to the economy what the result of so much negativitiy. We had eight years of it! You are right, now we need to focus on what’s going right, no matter how small. Meditation helps me. It clears my head and helps me focus on the positive. I agree wholeheartedly that we have to make time for ourselves–for joy and laughter. I don’t do enough of this. Thanks for reminding me.

    • Hi Rosemarie,
      We need to start a PR campaign that cheers people up!
      So much fear out there. I was speaking to my realtor today and she cannot believe my house hasn’t sold yet.
      It’s priced right, and it’s in pristine condition! Move-in ready! It simply has to be all the negativity in the headlines!
      Nothing has changed since June, except that the homebuyer’s stimulus expired.
      I’m happy to remind you to enjoy yourself!

  15. I rarely listen to the news, so that helps me stay grounded in reality rather than getting caught up in fear cycles. Now, when I go out for coffee it’s bizarre to listen to people talk. They get all fired up (or feared up?) over the economy or some other thing in the news cycle even though it generally has zero impact on them personally. Meanwhile, the clock on their own life keeps ticking away and they have no clue . . . now THAT is something to be afraid of!
    Jean Sarauer recently posted…Don’t Let Your Blogging Boat Sink!My Profile

    • Hi Jean,
      I do think we can live without knowing the blow-by-blows of the news. Most of what we hear isn’t all that helpful to our lives anyway!
      I think feared-up is a good way to put it!
      Yes, I totally agree getting sucked into the constant news cycle you’re giving away the power to focus on making your own life the best it can be, not to mention living in the future where all the probable fears may take place.

  16. Exactly right, Angela. I love the idea of “greasing the wheels of your inner economy”… that’s perfect. Ironically, we can’t afford to be cheap. There are so many ways to grease those wheels… can you afford to give an extra buck to your coffee guy or to someone on the street? Give it gratefully knowing it has to return. It is all about setting up an attitude of prosperity and abundance.

    • Rob, as usual – beautifully said. When we’re cheap with ourselves the Universe will mirror back and be cheap with us!
      Thanks so much for all the wisdom you share Rob!


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