We are still in the midst of the deepest recession in more than sixty years. Many American’s have lost their jobs, have been forced to sell their homes at a loss and are left wondering if we are ever going to get out of this mess. I decided to do a little research that may be useful in these troubled times and discovered some great do’s and don’ts that may be very helpful.
DO KEEP SOME EXTRA CASH HANDY: We all have different styles of living however it is very important to save for that dreaded ‘rainy day’. According to Business Week some investors recommend adjusting your personal
DON’T PUT ALL OF YOUR EGGS IN ONE BASKET: That old adage holds very true with investing your money in good times and in difficult times such as these. Imagine how traumatic it would be to lose most of your savings if the one company you had invested in went bankrupt. I can think of a few major companies that have done just that in recent months and I’m certain there will be more. Instead you should diversify your personal
DO THINK ABOUT ENERGY COSTS AND SAVINGS: Both American and Canadian governments are currently offering tax credits to home owners who make home renovations. Consider going green with those upgrades. You will be able to write off some of those expenses and you will save on your energy bills in the long run.
DON’T STOP MAKING CONTRIBUTIONS TO YOUR RETIREMENT: Personal
DO KEEP A TIGHTER BUDGET: Another almost startling statistic is that alcohol consumption seems to peak during recession times. Rather than buy that case of beer or bottle of wine, save that money in your ‘rainy day’ fund. Besides, personal
DON’T MAKE DRASTIC MOVES: Stay focused with your plan. Those shares you used to purchase at $20 may only cost $5 now and will be worth four times as much in the not so distant future. If you sell now, you will only get $5 for the share’s you bought at $20, also known as a substantial loss. The numbers don’t lie.
DO CONSIDER STOCKS AS AN INVESTMENT OPTION: The stock market for many people is a scary thing, especially if you aren’t sure how the whole thing works. Many personal
DON’T INVEST IN SOMETHING YOU DON’T UNDERSTAND: As I eluded to in the last point, do your homework with your investments. If Jimmy from work has this ‘great lead’ on a sure investment, don’t take his word for it. Research your investments on your own before you make them. It’s kind of like taking a car out for a test drive before you buy it. You can never be too sure with your money.
The best course of action to take for your personal
I used businessweek.com as a reference for this blog post.
Author: Ben Steverman