We are all hopeful that a depression has been avoided. Of course, the serious economists are still watchful of the possibility that the government cannot hold on and keep us away from still slipping into a modern version of the 1930’s style depression. If you are someone who likes to plan for the future, you shouldn’t be sounding the all clear to your friends and family either.
We continue to watch company earnings, unemployment, home sales and a variety of other factors in determining if we can truly “turn the corner.”
The truth has not changed. You must have a plan for surviving the “Great Recession.” This plan should include a reality view of the world YOU live in today.
You should have or work to build an emergency savings fund that includes 15 to 18 months of expenses in money market savings or certificates of deposit (or best in both). Now is NOT the time to pull back from a 401k unless you are carrying extra credit card debt and cannot afford to pay that debt off and push ahead in your 401k.
You must work to eliminate credit card debt and see these guys for who they are: The devil. That’s right – I said it. They are the devil. Your enemy. You should always treat them as such. Too many millions of Americans are still chasing their credit score when CASH IS KING.
Once you have secured your debt (eliminated or highly reduced it) and you have the proper emergency savings fund, work to steadily invest in mutual funds and diversify. We like no-load mutual funds. Look for low fees.
See your home for what it is: your home. Many millions of Americans refuse to see their home for what it is in terms of your wealth or poverty – your BIGGEST LIABILITY. Work to pay even small amounts extra in principle if you can because it will save you more than you realize in the life of the loan. In fact, if you steady-up on paying principle in addition to your monthly house “note,” you could knock YEARS and many, many thousands off of your debt. Homes are to live in. They are not speculative investment.
Invest in yourself. This means personal education. You can do it at the local community college or on-line. You can do some formal learning or training or teach yourself about saving and investing and work to generate passive income streams in addition to your “day jobs” to fund savings and investing.
People often only think to save when trouble comes. Steady and automatic savings will add up faster than you think.
You can do this. Develop wealth as a hobby. Be serious about it. Look to purchase things that begin to generate money on their own. This can be savings or mutual funds. It can – eventually be more.
Sign up for our FREE E-SAVER now at our main blog (www.stickyasset.com/blog). Good luck!