Monday, March 23, 2009
How To Make Your Personal Finances Recession Proof
By Nicholas Hall
Many Americans and people around the globe are facing enormous financial issues do to the current recession. With the GDP continuing to decrease and unemployment rising to its highest point in years, there is certainly a lot to worry about. However, there are many ways to keep your finances secure and maintain a good portfolio even in these rough times.
The first thing you need to do is to get past your frustration and know that things will eventually get better. For centuries economies have followed the same cycles, always including an eventual recession. This is the worst in a long while, but it will get better. When buying and selling in this market make sure to do your research and be knowledgeable about what investments you may be looking into. Also, don’t try to venture into any risky investments or career moves, just sit tight and wait it out.
As far as investments go, try to lock in and invest in higher CD rates. Rates for savings accounts are higher than ever; so instead of putting your money into risky investments, no matter how appealing the low quotes are, it is probably best to secure these unnaturally high rates of return on CD’s. It is also important to reallocate and diversify your portfolio as much as you can, especially with new investments. This will help to mitigate your risk in the future.