Key strategies for weathering the coming economic crunch

Key Strategies for Weathering the Coming Economic Crunch

By Gary Kent Boyd Article Word Count: 900 There is a wonderful saying in the book of Proverbs imparted to us by the wise King Solomon that states, "A prudent person foresees danger and takes precautions. The simpleton goes blindly on and suffers the consequences."

What everyone wants to know about the coming economic storm is where do I put my money and what strategies do I use to see me through.

Through a combination of applied true life experience from the past and just plain common sense you can advance your knowledge of what might be in-store in the coming months and prepare using these useful strategies.

Stay Informed By getting informed and staying informed you can reach an acceptable level of current ongoing revelations about where you want your money invested, how much you can put in it, and exactly where to put it. Americans over the years have been economically illiterate and if we want to be acceptable financial stewards of our finances and resources we need to look at investments with a fine eye knowing that a wrong move could place you quickly in dire

straits. There is much you can do to stay informed and help yourself and others.

By now you should see what is on the horizon and dedicate yourself to economic awareness by reading books on the proper investment strategies and what is going to be profitable in the future. By keeping current with financial news here and abroad you can keep on top of what is happening in the information age especially when we have it right at our fingertips on the computer.

You can keep on top of current knowledge by taking a economics or money management course that shows you how money really works, how a budget helps with your money management, and what is safe to invest in and what is not. There is also an abundance of

personal finance books that will help you become better money managers and help shed some light on recommendations that would be a prudent and honorable place to put your hard earned money.

Save Your Money By saving 15% of your paycheck every week you can throw a wrench in the old saying that, "Yesterday's a cashed check, tomorrow's a promissory note and today is the only cash you have got!" It is also a proven fact that where your treasure is, there your heart will be also.

In other words put your money where it will do the most good for you in the future. By putting it where is matters you will reap the profits when you need it in the future. When you put your savings in a no go account with provisions

not to touch it for a number of years at a definitive amount of interest rate each year, then you are truly on the right track to financial independence down the road.

Build a Cash Reserve By saving 50% of your income, while putting 15% in a savings plan, it will not be long before you are able to set aside a nice chunk of change. By doing this in the early stages of your life you will be able to build ahead for the future. If you are still living at home or are in the military this is the best time to start a savings plan that will prove to be productive for you. By taking your 50% savings and investing 33% in precious metals, 33% in U.S. dollars, and 33% in stable foreign currencies (like the Euro) you will be able to diversify your savings to

ensure that your money is not too highly exposed to risk in any one area.

Get Out of Debt If you have happened to get yourself in credit card debt proceed to stop using the credit cards and pay down your debt eventually looking to pay it off altogether. Pay off your debt first before you begin to save. We are truly a nation enslaved to debt and America is the world's biggest debtor nation. Pay off your high interest cards first starting with the smallest balance.

Then work your way up to the next card paying it off as soon as you are financially able. Before you know it you will be out of credit card debt and ready to start putting your money where it matters.

Start Bargain Shopping America is a consumer nation with shopping becoming a competitor sport. Consumers always have to have the latest and greatest gadgets, whether they can afford them or not.

Because of this obsession with overspending more consumers today are declaring bankruptcy. It is no mistaken fact that 43% of American households spend more than they earn each and every month. By bargain shopping, using coupons, going to yard sales, thrift shops, and pinching every penny along the way is the only sensible way to save money towards the real goal, financial independence.

Conclusion

By committing to using the rules of the game in investing and saving your income is the only possible way to get a grip on the future without dropping the ball in the present. If you can get your head around a few good investment and financial books, take a few courses on money management and diversified investing, there should be no reason that you cannot layout a reliable plan for your money that will reap benefits for the future.

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