By David Oxford
With the collapse of Lehman Brothers, the latest bailout of AIG and the worst week for the stock market since the terrorist attacks of 9/11, there is no longer any doubting that we are in some serious economic trouble. If you are beginning to get nervous you are not alone. Make no mistake, these are scary times. However, if you keep your head and follow a few simple rules, you will be OK. While everyone's financial situation is different, here are a few golden rules to get you safely and securely through the tough times ahead.
1) Live Lean and Clean
Now is not the time to take on any new significant debt or make any significant purchases. The name of the game now is reducing your expenses and lowering your monthly financial needs. Are you used to eating out every other meal? Stop right now. While you may feel that you are still capable of affording this luxury, that could change at any time. Get in the habit of preparing your own meals and reducing extraneous meal expenses. Learn to budget your groceries and focus on what you really need. Stock up on staples, learn a few cheap and easy meals and build these into your weekly diet. Focus on eating healthy foods and avoid empty calories. Why pay for a 1,000 calorie piece of cheesecake that is not going to provide you will any nutrition? Skip it.
As for luxury purchases like electronics, put a cap on it right now. Thinking of buying a huge 1080 dpi plasma TV for $2,000? Think again. As the market continues to sour we may see some deflation around the corner. This will make many financially illiterate consumers jump on the 0% interest promotions from Best Buy and Circuit City. Trust me, the last thing you need is another monthly payment for an unnecessary product. While these promotions are attractive, if you miss even one monthly payment you could be smacked with HUGE interest penalties and fees. I know this sounds old-fashioned, but now is the time to focus on cheap entertainment. If you haven't been to your local library, now is the time to do so. If you can't quite make that leap, at least buy some used books. My personal recommendation, War and Peace. At 1,400 pages you're looking at pennies an hour of entertainment even if you buy it new.
2) Don't Be Greedy - Be the Guy (or Girl) that Can't Get Fired
Take a stroll down Wall Street this week and you may see some guys in $1,000 suits selling apples on the corner. The impact of the current economy on jobs, both in the finance sector and outside, will be huge. With some of the world's leading firms crumbling and investment income plummeting, holding onto your job may be tougher than ever. The key is to bury your energy into overperforming on your job. Focus on becoming absolutely essential to your company's success, whether they're doing well or not. They say that a good company needs good accountants and a bad company needs great accountants. For those of you lucky enough to be holding on to accounting degrees, take a deep breath. You picked the right major in college! While you watched your finance major friends collect bonuses that were double your whole salary, your time has now come. Accounting jobs are the place to be. To get more info on why this is such a great career path, please visit http:/www.big4guru.com . OK, I'm off my soap box now.
No matter what your profession, the truth holds that you need to focus now on security. Forget squeezing your boss for every penny you can, or trying to fly up the company ladder. Right now the name of the game is building a niche with your employer that would make you irreplaceable. This can be done by overperforming your current roles, developing new procedures that could not easily be replicated if you were to leave and becoming the "go to" person in a specific area.
3) Take Comfort in What You Have
Anyone can cut their expenses and hold onto a good job, but not everyone can be happy doing it. Now is the season of being happy with what you already have. There are many out there that will not weather the storm as well as you. Any time that you realize that your smart living and thinking has helped you out, take a moment to praise yourself and be glad. Is your co-worker foreclosing on the house you knew he couldn't afford while you're cozy in your small but well furnished apartment? Is your buddy selling his huge TV for a huge loss while your money is tucked away in savings? Good job! The economic tide will surely turn, but for now just focus on living within your means. These skills, especially learning to appreciate what you have, will pay off big now and in the future! Good luck.
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