Don't get caught in the herd mentality. If you are uncertain as to what to do find out what the herd is doing and then do the exact opposite. Following are a few tips and hints you may find useful to prepare your Financial Future in a failing economy:-
What You Shouldn't Do In A Failing Economy
Bail out. If you are like everyone else and running around selling your stocks and equity mutual funds now you are being really silly. Because the values are very low all you will end up doing is guaranteeing that you will a turn paper loss into a real one. After every recession there comes the next boom. Just like the sun rises in the east and sets in the west you can't change it so you are far better off staying the course during times of economic uncertainty.
Stop saving. Dollar cost averaging into your making periodic contributions into your investment accounts, despite where the market is heading is still excellent advice. By making regular contributions to your retirement or savings accounts you are still following a sound strategy and keeping good financial discipline, so there is no reason for stopping them now.
Speculate. While lower prices for investments create opportunities, betting on the markets can easily get you into trouble, especially with the wild swings we're seeing now. Small, measured investments are usually better than large, hasty ones intended to make a quick killing. Be especially wary if you get tips from e-mail, the Internet, or elsewhere for certain stocks, commodities, and other "once-in-a-lifetime" opportunities
Take on new debt. If you need to take on new debt and using the equity in your home be especially careful as any economic downturns affect job stability and investment income. This impacts directly on determining how much debt you can handle. Sometimes it is still necessary to borrow, to put your child through college or make an emergency repair to your home just be doubly sure that you've examined all the options and risks.
Stop living. It is true these times demand you take precautions, however you do not need to over-react. Life goes on. You will still buy gifts when you take your family on vacation during the holidays. Don't over react and put off doing the much needed maintenance on your home or car or worse cancel insurance policies. Doing this could have a negative impact down the track. Instead review your spending carefully and make cutbacks where necessary.
You need to think outside the box and do something completely different to create a more stable financial future. Taking on extra work is not where I am going here. Think Plan B. Don't be scared, instead I want you to think strongly about starting or ramping up your Plan B. It is very important that you re-plan how and where you earn your dollars.
What You Shouldn't Do In A Failing Economy
Bail out. If you are like everyone else and running around selling your stocks and equity mutual funds now you are being really silly. Because the values are very low all you will end up doing is guaranteeing that you will a turn paper loss into a real one. After every recession there comes the next boom. Just like the sun rises in the east and sets in the west you can't change it so you are far better off staying the course during times of economic uncertainty.
Stop saving. Dollar cost averaging into your making periodic contributions into your investment accounts, despite where the market is heading is still excellent advice. By making regular contributions to your retirement or savings accounts you are still following a sound strategy and keeping good financial discipline, so there is no reason for stopping them now.
Speculate. While lower prices for investments create opportunities, betting on the markets can easily get you into trouble, especially with the wild swings we're seeing now. Small, measured investments are usually better than large, hasty ones intended to make a quick killing. Be especially wary if you get tips from e-mail, the Internet, or elsewhere for certain stocks, commodities, and other "once-in-a-lifetime" opportunities
Take on new debt. If you need to take on new debt and using the equity in your home be especially careful as any economic downturns affect job stability and investment income. This impacts directly on determining how much debt you can handle. Sometimes it is still necessary to borrow, to put your child through college or make an emergency repair to your home just be doubly sure that you've examined all the options and risks.
Stop living. It is true these times demand you take precautions, however you do not need to over-react. Life goes on. You will still buy gifts when you take your family on vacation during the holidays. Don't over react and put off doing the much needed maintenance on your home or car or worse cancel insurance policies. Doing this could have a negative impact down the track. Instead review your spending carefully and make cutbacks where necessary.
You need to think outside the box and do something completely different to create a more stable financial future. Taking on extra work is not where I am going here. Think Plan B. Don't be scared, instead I want you to think strongly about starting or ramping up your Plan B. It is very important that you re-plan how and where you earn your dollars.
About the Author:
Simon Smith believes the simpliest way to impliment your Plan B is to start a home based MLM business. The best thing you can do to start, is learn how you will be rewarded by your MLM company. It really is a simple business decision .
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