Global Credit Crunch Market
Global Credit Crunch Market – Today the top topic heard nationwide is the economy and struggles of everyday people to survive this current economic downturn. From reading history we learn of the cyclical nature of economies. So, while this economy is down today it could very much bounce back over time with the right leadership.
However, regardless to what is done or not done in Washington, I want to talk today about the responsibility to create our own economic self improvement program. I want to ask you one question. What is the state of your personal economy? Are you over burdened with debt, living pay check to pay check, fearing unexpected financial setbacks? Thinking about the retirement years? Having more month than money?
Even if the economy rebounds in the near future, I think we must continue to be vigilant about creating our own economic stimulus program. We must not get lazy and continue the same habits which in part contributes to our financial insecurity. We need a program that will stimulate and improve our personal financial reality. I suggest we look at our current condition and then create a personal three year economic self improvement program that will touch all areas of our financial life. The following tips will get you started on your personal economic recovery program.
Steps to create your plan
Before we receive our weekly, bi-weekly or monthly salary you notice the government has already deducted money from your paycheck among three areas: federal, medicare and social security. What does this have to do with the idea of saving? As it predetermined by the government that a certain amount of money will be set aside from the gross of your salary, it would be wise for us to set aside a certain amount of money for our savings. The money coming out regularly may seem to be a small amount, however over time you can grow a decent amount of money. Whether you choose to save $10, $50, $100 or whatever amount, the key is to be consistent and do not bother your savings. This would be a smart thing to do with the extra stimulus money from your paycheck. Global Credit Crunch Market
2) Repairing credit/Debt reduction
Now that we have started saving money for our future it is rime to say goodbye to debt and repair our credit. The Bible teaches the following concerning debt, “The rich rules over the poor, And the borrower is servant to the lender.”Proverbs 22:7There are two types of debt positive and negative. Positive debt refers to those expenses which are unavoidable and positively affect your credit ranking like a car note or mortgage. On the other hand, negative debt refers to those expenses that drag our credit rating down.
The first thing I advise is to go online to and request your credit report from the three credit bureaus. It is your right to receive a free credit report from Experian, Equifax and Transunion each year. Once you know the damage you can come up with a game plan for repair. You do not have to pay any company to repair your credit. Spend one evening at the library or Barnes and Nobles reading books on credit repair to learn what you need. You can then negotiate with your collectors from a strong position.
3) Live within your means
I like to say that you can live frugal but rich. Only you and I as individuals know the amount of money that could be saved. If we were to live a more financially responsible lifestyle. I am not saying that you have to give up cable, a nice dinner out. Turn off the air in the summer or wear old tattered clothes to save money. However, do we have to eat out so often or can we cook our own meals? Do we have to have every new piece of clothes or pair of shoes that come out? Or what about bad habits which not only destroy or health, but drains us financially. There are ways to live within a budget, yet still dress nice, eat well and enjoy this thing called life. The money you do not spend can go towards investments, debt reduction or savings.
4) Safe investments
I do not pretend to have knowledge of Wall Street. Big time investor in advising you regarding this step. Considering the economic downturn I do not know if it is wise or unwise to deal with traditional investments. However, this shouldn’t stop you from participating in what I call safe investments. Research at your local bank or online for the current rates for Cd’s(certificate of deposit) or MMA(Money Market Accounts). You can set aside a portion of the money you are no longer wasting and are now saving to invest in one of the aforementioned options and start your money working for you. Global Credit Crunch Market.
5) Start a small business/exploit your talents
The famous motivational speaker Les Brown in his book ‘Live your dreams’ says, “What do you enjoy doing? How can you do what you enjoy and make a living at it?” However, I believe each human being is capable of doing or learning to do something well that would benefit another person. It is easier to start a business doing something you enjoy and love doing than just focusing on money as the sole objective.
Get yourself a piece of paper and write down the things you know how to do really well. Next, research if there is a market locally or on the internet to exploit your talent. Considering the current economic climate and that it is said that many are in a position to lose their jobs this might not be a unrealistic option.