Who wants to sign up for Welfare? Anybody?
The worldwide global financial slowdown (meltdown) is possibly going to impact you and I for decades to come. Employment experts in the U.S. are already talking about the joys of freelance work. I wonder if they will talk about the joy of poverty when millions of Americans realize they cannot get acceptable wages anymore?
There’s no doom and gloom here, but everyone who has a job today must be thinking about tomorrow. While the vice-president reminds us of how patriotic it is to pay higher taxes and the Republicans talk about how they wouldn’t have raised taxes (when anyone would have to raise taxes across the board to fund our issues right now), you must focus your family finances. You must have a plan to store money away and get that money working for you. If you don’t, you will very likely end up in poverty.
It could happen to you. People that don’t think they could lose everything are crazy. The global meltdown could change the way and speed at which money is made over the next three (3) or more decades.
You must make your moves now.
If you have a good paying job now, you must begin with a plan to have a proper emergency savings fund: 15 to 18 months of expenses in high interest savings vehicles. Find your FDIC insured institutional partner at Bankrate.com.
We recommend you build six (6) months of this savings in money market savings accounts and then use the balance up to the 15 or to the 18 months of expenses to build six (6) month certificates of deposit. You don’t want to do more than six (6) month CDs because of fluxuations in interest rates.
Why have 15 to 18 months of expenses in savings? Because you may need that to replace your income, and having that savings will change your mindset. You will not be in a panic. You will have time to choose wisely and work to improve your situation. That’s what you need in 2009.
BEGIN WORK ON THIS RIGHT NOW:
Review your expenses over the last three (3) to six (6) months.
Cut any expenses you can cut and call everyone who you pay anything to and ask for a reduction. Tell them that you have suffered some financial setbacks (we all have) and you must reduce your “bill” by 10 – 15%. Ask for their help.
When you “win” a reduction in a bill, put that savings IN SAVINGS. Or you are defeating the purpose of this exercise.
Review your credit card debt. If you have any, work to reduce and then eliminate it. If you need a system for that, you can check out our system for that in “How To Survive Any Financial Crisis” available at http://www.middleclassmoney.com.
Review your pay. If you have to begin by automatically saving only 1% from your next paycheck and then increasing that savings each time you get paid or once a month by an additional 1%, get going on this. Your goal is to reach 15% savings off-the-top of your after tax paycheck. You can do it if you plan ahead.
You can set up automatic drafts in your checking account or thru your employer before you even see the money. Or do both! Time is wasting! Get this train moving and you will be glad you did.
Use any excuse to remove money from your checking account (*a checking account is a money laundering account for other people’s money) and put that money in a high-interest FDIC insured money market savings account.
Put yourself to work in your spare time. Educate yourself on negotiation. You’ll need it in the next decade of your life, and if you don’t use it…you are being foolish.
You don’t think rich people negotiate? Of course they do. You can, too. And you should. You must.
If you haven’t done so already, join our FREE Facebook group “Live The Lifestyle Your Family Deserves™. Sign up for our FREE monthly e-saver at http://www.stickyasset.com/blog.
Educate yourself on the new tactics of spending less and saving more.
Time will move no matter if you move to save or not. If you choose to get moving and develop your own strategic plan for saving automatically, you will be the winner.
You’ll be glad you did, and it may help you avoid the poverty line. What is worse than being young and broke? Being OLD and broke. Don’t let it happen to your or your family. Involve them. Teach your children. Grow wealth.
Thanks for spending a few moments with us.