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4 do and should not be financed for personal finance

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We are still in the midst of the deepest recession in more than sixty years. Many Americans have lost their jobs, have been forced to sell their homes with losses and are left to wonder if we will get out of this mess. I decided to do a little research that might be useful in these difficult times and found some great and should not be done which might be very helpful.

Save some additional cash: we all have different lifestyles but it is very important to save for the ‘rainy day’ that is feared. According to Business Week some investors recommend to adjust your personal finances and save $ 12,000 per adult, another recommendation is to save six to nine months in living expenses. Good fit but trying to do anything that best suits you to keep the bill paid.

Don’t put all your eggs in one basket: The old saying is very true by investing your money in good times and in difficult times like this. Imagine how traumatis will lose most of your savings if one company that you have invested bankrupt. I can think of several large companies that have done it in the past few months and I’m sure there will be more. Instead you have to diversify your personal finances between fixed income and shares also try to diversify that money between small and large companies.

Thinking about energy costs and savings: The American and Canadian governments currently offer tax credits to homeowners who make home renovations. Consider being green with that upgrade. You will be able to delete some costs and you will save your energy bill in the long run.

Don’t stop making a contribution to your retirement: personal financial decisions at the time of recession. When everything goes well, people tend to invest more. When time is a strong person investing less. Ironically it is the opposite of what we have to do. Invest when the lowest market will create a higher level of return in the long run.

Set a more stringent budget: Other statistics that are almost surprising are that alcohol consumption seems to peak over time recession. Instead of buying a beer kasing or a bottle of wine, save the money in your ‘rainy day’ fund. In addition, personal financial decisions should not be made while drunk

Don’t make a drastic movement: Stay focused on your plan. The stocks you use to buy at a price of $ 20 may only cost $ 5 now and will be worth four times more in the future that is not so far away. If you sell now, you will only get $ 5 for the part you buy for $ 20, also known as substantial losses. The numbers don’t lie.

Consider stock as an investment option: the stock market for many people is a scary thing, especially if you are not sure how everything works. Many personal financial advisors agree that the next few years are a lifelong opportunity to consider stock. Do your homework and you might find yourself in a very profitable situation.

Don’t invest in something you don’t understand: As I avoid on the last point, do your homework with your investment. If Jimmy from work has a ‘big leader’ about a sure investment, don’t take the words for it. Research your own investment before you make it. It’s like taking a car for a test drive before you buy it. You will never be too sure of your money.

Jack Zoe
the authorJack Zoe