Surviving Uncertain Economic Times

Here are some suggestions from an article titled “Surviving Uncertain Economic Times” in the January 2009 issue of Columbia magazine, by John Ingrisano.

Reduce Your Expenses – suggestions include reexamining your budget, cutting back on unnecessary expenses, and revising your attitude toward spending. Ask yourself when making a purchase – Do I want this or need this? Examine your needs to truly see if they are needs.

Reduce Your Debt – if you carry credit card balances, try to reduce the balances on these each month. If you are in a bind –at least make the minimum payments, and make them on time! Late or missed payments will adversely affect your credit history and credit score.

Secure Your Job – you don’t have much control over whether your employer keeps you, but one way you to tip the scales in your favor is to make yourself indispensible. Look for ways to emphasize your unique skills and your value in the eyes of your employer.

Preserve Your Future (Retirement) Assets – in difficult financial times, it is tempting to cash out an IRA or 401(k), but you avoid making withdrawals from these long-term assets unless absolutely necessary. If you don’t meet certain conditions, you could also pay early withdrawal penalties and income taxes on these withdrawals.

In summary, protect what you have worked to achieve while reducing your expenses. The economy goes in cycles – maintaining financial self discipline during these tough times will help you get ahead when the economy rebounds.