STOP!!! Don’t panic. Don’t withdraw all your money from the bank and bury it in the backyard or hide it under your mattress. Don’t withdraw or stop contributing to your 401K and please don’t do anything stupid. Don’t give in to fear.
Time is on your side
I’m working in New York right now and word on the street and in the paper reports stories of doom and gloom. The financial giants of WallStreet have been cut off at the knees and tumbled to the ground hard. Yes, the stock market has taken a severe beating, and stock prices have plummeted to record lows, just remember time is on your side.
Don’t let the consequences of the mortgage meltdown on financial institutions and the stock market plummet erode your American dreams. Throughout history which usually tends to somehow repeat itself, WallStreet and the financial markets have always somehow bounced back stronger than ever. Right after the Great Depression of the 1930’s many self made millionaires were created.
While I don’t have a crystal ball to predict the future, I agree with most economic analysts who expect the economy to remain fragile through 2009. For us, the best way to predict the future is to CREATE it. The best course of action for you and your family is to be disciplined: avoid splurging; identify and cut out unnecessary expenses and save for what’s essential; and hedge against those tough times. We can all benefit by developing good spending habits: confront – and cut up – credit cards; use your home as a savings vehicle – not as an ATM; and establish and contribute regularly to an IRA or 401(k).
If you can stay afloat and ride out this storm, the rainbow will appear and the sun will shine again. Remember time is on your side and better days are ahead.
What are you doing or what spending habits have you changed to deal with this tough economy? I would love to hear your comments!
Bianca J.
