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3 Lessons to Learn from Greece’s Sucky Situation

by Minority Fortune

Greece has been getting a lot of attention lately due to their steep debt woes. With their debt being 130% higher than their GDP and being in risk of defaulting, it’s enough to have the whole world paying attention. If a solution isn’t reached soon, it could result in a falling euro and the beginning of other major international defaults. Simply put, debt is not attractive.

Meanwhile, most of the countries on-looking the calamity occurring in Greece and other countries must pay heed to their own impending problems. This economic crisis is shining light on fiscal irresponsibility, and it could happen to anyone that’s not in control of their spending. To be frank, Greece’s problems are being practiced in various scales around the world. We’re all at the most only six degrees separated from the same predicament as Greece.

There’s always hope for a recovery in the midst of financial disaster. However, it’s a pain to deal with. It is wiser to avoid it. In order to avoid the situation of Greece in our personal lives, we can be mindful of a few things:

1. Cash Flow: Greece was spending more money than its GDP could produce. We should spend less than the amount that we bring in to yield a positive cash flow. Otherwise, you’re writing a check that you won’t be able to cash one day.
2. Honesty: It’s a tough job to keep up with the lies that you tell in regards to your financial situation. Greece has done a number on its reputation by cooking its books and avoiding the truth in regards to their situation. They may have never been this deep in hot water had they been transparent from the beginning. Don’t “cook your books” (manipulate the numbers) in order to impress anyone. Once you’ve been labeled as deceptive, you’ll have to work twice as hard to gain reputation and trust back.
3. Focus: Sure it’s tempting to poke your nose in everyone’s business. However, it will make you no more productive on your own personal/financial issues. In order to avoid having the spotlight on your own bad judgments, it’s better to anticipate and work on them. Staring and commenting on Greece’s situation doesn’t get you any closer to solving your own.

You Answer: Are there any other lessons that can be learned from this situation? Do share in the comment section!

*Image courtesy of Scott E Barbour.
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