1) Stay alert as to what is going on in the financial industry. A recession can shake things up very quickly, causing old industries to collapse (like the housing market) and new industries to be born (like the alternative energy market).
2) If you don’t already have a budget, it’s time to create one. Use a budget to reduce your unnecessary expenses (which average 30% in the
3) Pay down your debt and build a savings account of three to six months of your living expenses. This will be a great help if you get laid off and have to find a different job. Get out of consumer debt (credit cards) as fast as you can.
4) Invest in your children’s education. Education is going to continue to be very important as the global economy has little need for unskilled workers.
5) Move your investments to lower-risk securities like bonds during the market shakedown, than move back to stocks after the market hits the bottom – in a few years. Another option is to invest in commodities like gold, silver, wheat and corn, which are returning high profits, but they are also very risks, so be careful and don’t bet the farm. The coming inflation and sinking dollar will push long term interest rates higher, paying good returns for anyone that has cash.
6) Your mortgage payment is likely to be your largest monthly bill. Reduce your mortgage with one of the many options including downsizing, doubling up, renting, refinancing or even letting your home go into foreclosure.
7) Put off dreams with large financial commitments, like remodeling or purchasing a new home. If you have been planning to finish your basement this summer, it might not be a bad idea to wait until next summer – just in case you need the money or run into an opportunity to invest it for a large return or get a good deal on a product being liquidated at a huge discount due to oversupply from the economic slowdown (like an SUV, the lots are full of them).
8) Reduce your food costs, by eating out less and buying more food from the grocery store. Plant a small fresh salad and vegetable garden this summer to increase your health and save some money. Food costs are going up for many reasons, Ethanol, population growth, rising cost of oil (falling dollar), increase in natural disasters, etc. A small garden investment could result in a large savings.
9) Create another income stream, even a small one. Maybe you take a second job for a month to pay off a credit card or maybe you sell your baseball cards on Ebay or look for a good way to start a small business from your home.
10) Instead of going on an expensive vacation, consider an alternative family vacation this year like - sleeping outdoors under the stars. Many
1 comment:
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