Don't get caught with your finances down!

On days like we have been having lately it is tempting to just turn off the TV, avoid reading the paper or surfing the finances pages of the internet. However sticking your head in the sand – as reassuring as it can be at the time – is a great way to guarantee that you go down with the ship!  The worst thing you can do is assume the strategy that got you where you are today, which has worked great over the past 20 years, will continue to work for you over the next 5 years: it won’t work.  The system is broken.  

So you may be asking what can you do? Well here are a few simple idea’s:

1) Manage your emotions.  Breathe.  Look out of the window and appreciate the autumn views.  Notice all the looming disasters you’re afraid of, and notice also that you do have options and can improve your situation even in the worst of times.  

2) Think long term, this market downturn is a buying opportunity if you have the cash to do it, other wise sit tight and focus on your long term financial goals. Solid companies, strong balance sheets and good dividends. 

3) Shore up your own personal balance sheet by paying off your debt. Limiting your liabilities is the best thing that you can do in these volatile times. The financial analists are predicting that credit may be harding to get in the very near future. You will greatly improve your credit score by paying off your debts and leaving your credit lines open and only using them when needed and paying them off immediately.