Tip #1) Understand Your Personal Finances
You need to track your spending and create a balance sheet showing your income and expenses. This is something I explore in my book. The majority of Americans have very little understanding of their finances. The natural reaction for most people is to fear what they don’t understand. Buy understanding where your money is going you can modify your spending to reduce your debt and increase your wealth. If you have questions about creating a budget ask me @ david.macon@thewinadvantage.com.
Tip #2) Diversify
If you have investments you need to diversify your portfolio. Now is a great time to explore new industries and companies. In the next several months you are going to hear a lot about alternative energy. With proposed spending and incentives for green companies it would be wise to research these companies. Also look for re-domestication of many companies. This is also good time to think globally. I would never recommend rushing into a foreign market but sit down with an advisor and think through this option. Take time to educate yourself about global markets.
Tip #3) Invest in Yourself
This is always a great idea but even more so in tough times. In a sagging market it is common to see increased competition in the job market. This means that in order to stay competitive you should be looking to increase your academic credentials and beef up you certifications. This will help you to be more valuable to your current employer and more competitive when seeking a new job.
Tip #4) Buy
The current market brings the following adages to mind:
“When there is blood on the streets buy real estate.”
“If it is a bad time to sell, it is a great time to buy.”
While the current situation of our economy is tragically hurting many people, there are great opportunities for everyone to prosper. When I look at this market I see a great opportunity to purchase discount real estate and stocks for cents on the dollar. The market will rebound and when it does many people could place themselves in a great financial position. If you have the ability to invest now could be a great time to acquire discounted assets.
Tip #5) Stay Calm
Focus on the facts not the media spin. When you hear that the economy is failing your reaction should not be to pull your money out of the bank or the markets. Your reaction should be to research the root cause of the problem. Find out what is failing and what that means for the market and the economy. After you have the facts you can act, you should never react when it comes to you money. Stay calm during market fluctuations; you will be glad you did.
Focus on the facts not the media spin. When you hear that the economy is failing your reaction should not be to pull your money out of the bank or the markets. Your reaction should be to research the root cause of the problem. Find out what is failing and what that means for the market and the economy. After you have the facts you can act, you should never react when it comes to you money. Stay calm during market fluctuations; you will be glad you did.
-David Macon
