How to Keep Your Finances Stable
The great recession of 2008 was a big wake-up call for everyone. Fortunately, the collective anxiety that we experienced, being on the brink of another Great Depression has passed, and the world’s economy has recovered over the intervening years.
But we shouldn’t forget the lessons that recent history has taught us. The International Monetary Fund recently warned in their annual financial stability report of another financial crisis, saying that urgent action would be required to stabilize Eurozone banks.
Add to that the instability that was seen after Brexit and the U.S. elections, and you have some people sitting on the edge of their financial seats.
But what can be done by the regular citizens of the world who aren’t necessarily involved in international banking and world politics?
Here are some things that can be done to weather a potential financial storm:
Save your money
Have an emergency fund at your fingertips. An emergency fund is cash that you’ve saved up for the sole purpose of helping you maintain your financial obligations through emergencies that life deals out.
If you do have expendable funds, then consider the idea of investing in gold or something that is stable and easy to sell if you ever find yourself in need of some money.
Get out of debt
Getting out of debt is a good idea, whether there is a financial crisis on the way or not. The average American household carries over $15,000 in credit card debt alone, not to mention mortgages, student loans, auto loans, or other debt.
Sensible middle ground investments
Don’t be tricked by the “call of the wild” which promises unreasonable returns. Now is not the time to gamble your finances away. A sensible middle ground of investing is the way to go. Investments that are based on real value and pay dividends and interest.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
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David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC
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