Unless you have been living under a rock for the past few
months you will no doubt have noticed the economy and financial
markets are failing.
A Forcast Event.
Many financial strategist have been discussing this for quite
some time. Robert Kiyosaki even wrote a book about it titled "Prophecy". Written in 2002 it discusses why the biggest stock
market crash in history is still coming and how you can prepare
yourself and profit from it.
Now it is here we can no longer shrug it off as some silly "doom and gloom" view… .
If it is going to be as bad as the gloom and doom merchants in
the media are wanting us to belive most people haven't felt the
pinch yet. Any financial strain you've felt so far is just the
tip of the iceberg compared to what's headed our way. And the
biggest impact will be on the middle class around Christmas.
Understandably, many people are scared as their financial
future is far from being secure. Having said that it is not the
time to be stuffing your money into your mattress or hiding
under the bed.
You shouldn't do that, nor should you panic. The regulators
around the world are working hard and taking swift action to
bring stability to the market. The best thing you can do is ride
out the short-term ups and downs with just a few prudent
adjustments where necessary until it all shakes out.
The Smart People are Planning Their Future.
Don't get caught in what I call the "herd mentality". A little
rule I have used myself when I find myself in a tight spot is
ask myself "What is the herd doing?" And then do the exact
opposite. Now is the time to take a common sense approach.
Following are a few tips for a failing economy you may find
useful:
What You Shouldn't Do:
Bail out: Right now everyone is running around dumping stocks
or equity mutual funds now. This is silly as the values are
especially low and it is simply guaranteeing that you'll turn
paper losses into real ones. Even if there's more downside to
come, staying on course often pays off during times of economic
uncertainty. You'll only realise a loss if you sell. What
happens after a recession? A Boom. What happens after the sun
sets in the west? It rises in the east.
Stop saving: Those regular contributions you've been making
to your savings or retirement accounts are an important part of
good financial discipline, and there's no reason to stop them
now. The strategy of dollar-cost averaging your
investments–making periodic contributions to your accounts,
regardless of where the market is heading is still good advice.
Speculate: While lower prices for investments create
opportunities, betting on the markets can easily get you into
trouble, especially with the wild swings we're seeing now.
Small, measured investments are usually better than large, hasty
ones intended to make a quick killing. Be especially wary if you
get tips from e-mail, the Internet, or elsewhere for certain
stocks, commodities, and other "once-in-a-lifetime"
opportunities.
Take on new debt: Be careful about acquiring new debt.
Economic downturns can affect job stability and investment
income, making it difficult to determine how much debt you can
handle.If you must borrow, say, to put a child through college
or make an emergency repair to your home, be doubly sure that
you've examined all the options and risks, especially if you're
planning to use the equity in your home.
Stop living: Although these times demand extra caution,
there's such a thing as over-reacting. Whether it's buying gifts
for the holidays or taking your family on vacation, life has to
go on. And some cutbacks can have negative consequences for your
wallet, such as putting off maintenance for your house or car or
canceling insurance policies. So don't overreact. Instead
reflect carefully and, where necessary, adjust.
What You Should Do:
Get your finances in order: There's never been a better time
to make a budget and start paying down your debt, credit card
and otherwise.
Rethink your plans to retire: If you're expecting to retire
soon, consider holding off for a while, if possible, until
things calm down. That will give you time to reassess and, if
need be, modify your plans.
Speak with your financial adviser: With end-of-the-year tax
planning an annual ritual, now is a good time to make an
appointment with your tax adviser no matter what the economic
outlook. He or she may have some advice on how to tweak your
finances as you ride out the current storm.
Consider a Plan B: Instead of being scared, I'm encouraging
you to look at starting or ramping up your Plan B. It's never
been more important than it is right now to re-plan how you make
your money.
You need to do something different to create a stable financial
future for yourself. One of the easiest ways to to this is to
have your own home based business.
Now is the time to take action and learn how to build your own
home based business… to apply yourself… to work smarter not
harder … to find the time to get it done.
So what's the smartest thing a person can do to build their own
home based business, or any small business in this
economy–successfully, and without a lot of risk?
Network Marketing has been hailed by many as the ideal home
based business. Network Marketing is the best home based
business opportunity particularly if you find a mentor in the
network marketing business of your choice. This is a great short
cut to home based business success as the mentor has already
successfully travelled the road you want to travel. Consider
this network marketing mentor option.
Simon P Smith has been working in the financial
services industry for over 20 years and building his fortune in
the Network Marketing Industry. If you are ready to get out of
the Rat Race pick up your free report at Simons Network
Marketing Mentor Blog http://asuperalternative.com/blog.
