Submitted by: Simon P Smith
Unless you have been living under a rock for the past few months you will no doubt have noticed the economy and financial markets are failing.
A Forcast Event
Many financial strategist have been discussing this for quite some time. Robert Kiyosaki even wrote a book about it titled Prophecy. Written in 2002 it discusses why the biggest stock market crash in history is still coming and how you can prepare yourself and profit from it.
Now it is here we can no longer shrug it off as some silly doom and gloom view .
If it is going to be as bad as the gloom and doom merchants in the media are wanting us to belive most people havent felt the pinch yet. Any financial strain youve felt so far is just the tip of the iceberg compared to whats headed our way. And the biggest impact will be on the middle class around Christmas.
Understandably, many people are scared as their financial future is far from being secure. Having said that it is not the time to be stuffing your money into your mattress or hiding under the bed.
You shouldnt do that, nor should you panic. The regulators around the world are working hard and taking swift action to bring stability to the market. The best thing you can do is ride out the short-term ups and downs with just a few prudent adjustments where necessary until it all shakes out.
The Smart People are Planning Their Future
Dont get caught in what I call the herd mentality. A little rule I have used myself when I find myself in a tight spot is ask myself What is the herd doing? And then do the exact opposite. Now is the time to take a common sense approach. Following are a few tips for a failing economy you may find useful:-
What You Shouldnt Do
* Bail out. Right now everyone is running around dumping stocks or equity mutual funds now. This is silly as the values are especially low and it is simply guaranteeing that youll turn paper losses into real ones. Even if theres more downside to come, staying on course often pays off during times of economic uncertainty. Youll only realise a loss if you sell. What happens after a recession? A Boom. What happens after the sun sets in the west? It rises in the east.
* Stop saving. Those regular contributions youve been making to your savings or retirement accounts are an important part of good financial discipline, and theres no reason to stop them now. The strategy of dollar-cost averaging your investmentsmaking periodic contributions to your accounts, regardless of where the market is heading is still good advice.
* Speculate. While lower prices for investments create opportunities, betting on the markets can easily get you into trouble, especially with the wild swings were seeing now. Small, measured investments are usually better than large, hasty ones intended to make a quick killing. Be especially wary if you get tips from e-mail, the Internet, or elsewhere for certain stocks, commodities, and other once-in-a-lifetime opportunities
* Take on new debt. Be careful about acquiring new debt. Economic downturns can affect job stability and investment income, making it difficult to determine how much debt you can handle.If you must borrow, say, to put a child through college or make an emergency repair to your home, be doubly sure that youve examined all the options and risks, especially if youre planning to use the equity in your home
* Stop living. Although these times demand extra caution, theres such a thing as over-reacting. Whether its buying gifts for the holidays or taking your family on vacation, life has to go on. And some cutbacks can have negative consequences for your wallet, such as putting off maintenance for your house or car or canceling insurance policies. So dont overreact. Instead reflect carefully and, where necessary, adjust.
What You Should Do
* Get your finances in order. Theres never been a better time to make a budget and start paying down your debt, credit card and otherwise
* Rethink your plans to retire. If youre expecting to retire soon, consider holding off for a while, if possible, until things calm down. That will give you time to reassess and, if need be, modify your plans
* Speak with your financial adviser. With end-of-the-year tax planning an annual ritual, now is a good time to make an appointment with your tax adviser no matter what the economic outlook. He or she may have some advice on how to tweak your finances as you ride out the current storm.
* Consider a Plan B. Instead of being scared, Im encouraging you to look at starting or ramping up your Plan B. Its never been more important than it is right now to re-plan how you make your money.
You need to do something different to create a stable financial future for yourself. One of the easiest ways to to this is to have your own home based business.
Now is the time to take action and learn how to build your own home based business to apply yourself to work smarter not harder to find the time to get it done.
So whats the smartest thing a person can do to build their own home based business, or any small business in this economysuccessfully, and without a lot of risk?
Network Marketing has been hailed by many as the ideal home based business. Network Marketing is the best home based business opportunity particularly if you find a mentor in the network marketing business of your choice. This is a great short cut to home based business success as the mentor has already successfully travelled the road you want to travel. Consider this network marketing mentor option.
About the Author: Simon Smith has been working in the financial services industry for over 20 years and building his fortune in the Network Marketing Industry. If you are ready to get out of the Rat Race pick up your free report at Simons
Network Marketing Mentor