Financial Crisis 101 – What should I do now?

by Black PR Wire Newsroom (BPRW)

Wow, what a week. The stock market index fell more in one day than it has ever done before, banks are closing or are being bought up in fire sales, and companies with billions of dollars in assets are folding. But in the midst of all this bad news, there is some good news on the horizon. What could that possible be? Well, it is very likely that the economy is close to hitting the bottom for this cyclical downturn. Remember, before things can turn around and get better, it first has to hit the bottom. Unfortunately, like the recession in the mid-70’s, we might be at the bottom for a while.

So, what do we do now? It is very simple. First, do not panic. The economy will eventually improve and get stronger, and the stock market will go back up, sometime. But be patient, because it won’t happen overnight. Secondly, we must do what Washington is apparently incapable of doing. That is, balance our own checkbooks. Not too long ago, it was considered foolish to spend more than what you earned. Lately, it has become commonplace. We consumers have to take some responsibility for the financial mess we are all in. All too often, we bought when we should have saved, and we took out loans to buy that which we should have done without.

We must return to being wise with our own finances. When we have our own house in order financially, then we can weather any storm that is on the horizon. The most important thing to do now is to simply spend less than what we bring in. This way we can save a little or, more importantly, pay off the credit card debt we have. Our top priority must be to pay off high interest credit card debt. Pay off the credit cards and stop using them. After that, we can start saving.   

In order to reduce your spending as much as possible, carefully and honestly, review your spending habits. Do you really need all of those cable channels, or all those new clothes? Decide to eat out only once a week for dinner and pack a lunch instead of going to the fast food shop. All members of the family have to participate in these spending cuts. Kids have to pitch in too - allowances may have to be put on hold for a season. Use this time to improve personal relationships and spend time together as a family. Instead of going to the mall, take a bike ride around the neighborhood. Instead of going to the movies and spending real money, play a game of Monopoly and throw away fake money. Or rent a movie and make some popcorn at home, you’ll be amazed at how much money you can save.

But most of all, during these very trying times, don’t panic and don’t worry. Remember what Jesus said about worrying, "Therefore I tell you, do not worry about your life, what you will eat or drink; or about your body, what you will wear. Is not life more important than food, and the body more important than clothes? Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they?”
Yes we are, and when we practice these simple spending tips, our family life will be much more valuable too!!