8 Financial Tips for Turbulent Times
The difficult economic situation taking place in the world affects us and can lead to wrong decisions, leading to a vicious circle in our economy. Here, eight tips to prevent it.
Much has changed since the high-flying days of the late 90s. The stock market is down and does not appear to be in the process of rising. Major companies are dismal and startling ads each week. And the news of layoffs fill the media.
But when it comes to handling the reverse way, little appears to have changed much. Again, this is for continued attention to common sense, not tempted by the bright flashes had never before heard of, and seem to get rich from the overnight.
Some tips we’ve collected from various specialists, will handle these very turbulent times:
• If you are in financial trouble, first cancel its debt with credit card. It is really important psychological advantage of having no deficit with your credit card as personal credit is available and if you hit hard times, at least not have to see how the 28 percent annual interest (1) most of them pose, your debt increases rapidly.
• Assemble an emergency fund. Have at least equivalent to three months of their operating expenses in an account accessible. This will serve as a buffer in case you ever lose your job because you can move comfortably while you look elsewhere.
• Do not let financial problems in the short term impact on all its long-term plans. Calculate how much to save for retirement.
Most people should invest at least 5 to 10 percent of their earnings. Not only will help in their future financial independence, but also may make it more efficient in managing their money.
• Providing personal insurance. Many people have no life cover and disability adequate labor. Identify the gaps and try to fill them. Their health and individual welfare are always uncertain, but building a good network security, bring peace to your mind.
• Invest in bricks (houses). His performance may be lower, but the chances they give you is virtually zero loss. Furthermore, hardly undermined by the passage of time, and always will be a backup option for both you and your family.
• Do not let emotions drive their investment decisions. Investors cling after a major correction in the market and sold all their stock holdings, are missing an opportunity to purchase. History has shown that continue to buy shares when they are in low, long-term is always beneficial.
• Diversify. It is definitely time to put all your eggs in one financial basket. Diversification is vital to make you feel more comfortable. For example, retirement accounts should be in mutual funds worldwide.
(1) Depending on the country and even of each issuer and these percentages can vary greatly. For example, in Argentina, the annual interest (TNA) is about 75.40% in November 2002, or 6.20% of TEM.
