Many businesses are talking about “tightening the belt or “cutting back” because of the recession that we currently face, but how much of it is the real truth?

One company a friend of mine works for was explaining the other day how they have cut 60%of the staffs wage by £90 per week (an average of £390 per calendar month) and now my friend may have to sell their house, however the company then turn round one month later boasting profits of over £20,000 in that month and the director has upgraded his car??

It is easy for a company to manipulate the economy when there is an excuse and these manipulations can be made in more ways than one.

1.     Business owners may stop promoting for fear of people not buying resulting in a lack of customer awareness so profits drop.

2.     Staff may be manipulated in to the old “your lucky to have a job” and possibly take advantage of staff’s fear of not getting another job so they don’t leave.

3.     Some businesses may increase prices of necessities increasing daily cost of living, for example I used to shop at Tesco’s for all my food but some of the products (e.g. tinned Tuna) nearly doubled in price in one week earlier this year. So they have now lost half of my weekly food budget as I shop around.

The only note I strongly suggest is when somebody starts quoting the recession to you and especially if it affects your financial income, do not just take their word for it as they may have a money fear attached to the sell. It is true many people have lost their jobs and are now unemployed but there are still hundreds of millionaires in the UK; it is just a case of tapping into the wealth.

Where can you look can ensure you get the best deal?

Keep all options available and don’t subscribe to others implied fears!