Four Things You Can Do For Yourself to make the most of the Economic Downturn
Here are five principles or steps that will help any person in any economy become more financially stable:
Pay Yourself First – Even if you start with a little, save money out of every paycheck. I use online banking so the first bill I pay is to transfer my goal amount to a savings account. Every month I celebrate the few dollars I earn in interest and when the account grows to a certain level I dump that money into other investments according to my goals.
Pay off your credit card debt – If you carry a balance, pay it off. You can start with the highest interest rate card, or try to pay off the smallest balance first or employ any number of strategies but get it done, an extra $50 or $100 a month at first can go a long way. Sell stuff on ebay or craigslist – that credit card debt is a weight around your neck that needs to go, now.
Budget for unexpected expenses – If you have credit card debt, start with building toward $1,000 in accessible reserve rather than emptying your checking account every month. Once the credit card debt is dead, try to save six month’s wages in a high interest savings account.
Get insurance – Auto, Life if you have minor children or other factors, Renters or Homeowners. You do not need a lot and there are big savings if you shop around but insurance is essential to protecting your nest egg.
Get an Estate Plan – Will, Letter of Last Instructions, Power of Attorney and Living Will. If you have not updated them in a few years then have them updated.
Understand that while the economy will turn around, your learning and employing these basic principles will help you lessen the blows of the lows and ride the tides of the highs.
Published by: admin on April 1st, 2009 | Filed under Financial Matters
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James Schroeder, Esq.
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