Our nation is going through some troubling economic times right now… but you do not need to follow suit. The economy today is a horror story of financial bailouts and golden parachutes. Is the government going to bail you out if you make some not so good decisions? This is why you need to control your own financial destiny!
Don’t panic.
Easier said than done, right? Well, the truth is that the stock markets go through cycles every ten years or so. Which is why if you are close to retirement, you should be involved in low risk stocks and why if you are far from retirement, higher risks are acceptable. You should be waiting it out… not jumping ship! If you join the sell, sell, SELL bandwagon, you will be sorry when those that buy your “undervalued” stocks at a song and make a killing. An economic downturn is the best opportunity to purchase stocks (and even “designer” stocks like Google or McDonalds) at a much discounted rate.
(Note: Before you do anything, talk to your financial advisor who can help you figure out the best financial planning strategy that makes the most sense for YOU.)
Take inventory of what you have.
Make sure that your insurance policies are up to date for that new diamond you bought your wife for her birthday or for the adjustment in your home value and belongings within. Make sure you have enough liability insurance on your automobile. It’s surprising that most state minimums are way too low! Have your home appraised for insurance reasons as well as for your own knowledge… and do NOT take out that home equity loan to go on vacation. Take it out if you want to redo the dated 80s kitchen!
Your home is likely worth MORE than what the naysayers are saying it is these days. And if it’s not? Reevaluate your situation. If you plan to stay in your home for 5-10 years, chances are your market will improve. If you need to move, make sure to bank on your losses and stay in budget on the new place. Whatever you do, do not let your realtor show you anything above your price range. You WILL like it and you WILL try to justify it!
Now is the time to buy.
If you are a first time home “shopper” realize that this is a fantastic time to buy. If you don’t own and need to do something with your savings, property is a VERY good choice! Prices are at record lows and right now so are interest rates. Putting money into a mortgage is always a wiser decision than throwing all your hard-earned cash away on rent.
Remember that it is not a sign of failure if you need to cut back on your lifestyle to keep your savings high in these tough economic times. When you retire, you will not regret the money you put into your mortgage or your savings account or your 401K as you would those restaurant meals and useless trinket items you HAD to have!
If you keep your eye on the prize, you can survive these rough times with a smile on your face
Personal Coach David Bohl shares the viral message "Slow Down FAST" and helps people raise the roof on all facets of their lives without risking implosion. Get some must-haves for persevering in challenging times! Sign up for David's online newsletter, The Bohl Report today.