Unless something’s hit the fan as I write this email, the economy’s humming along nicely right now. And by all indications, it’s looking to continue on track for some time to come.
But we humans didn’t manage to survive all these years without having that “worry-wart” gene built in.
Would-be ancestors who went merrily, blindly along the ancient savannahs fell prey to large and toothy carnivores – failing to add their “don’t worry, be happy” genes to the pool.
Instead, those who were wary, always on the lookout for threat and danger – they dodged the saberteeth and managed to survive to fret another day.
Which brings us to us.
Right now, we’re currently in the second longest economic expansion in US history – and there are no serious signs of it ending anytime soon.
(FYI Australia has now gone 28 years without a recession – we still have a ways to go to hit that marker.)
But nothing goes on forever. So the good times will end their roll and like our ancestors who sought out caves to protect themselves from hungry beasts, what can we do today to safeguard our finances from the inevitable downturn?
Here are three simple steps you can take:
1) Create multiple streams of income. No matter how secure your current job may be, it’s still not guaranteed… even if it’s your own business! It’s wise to seek out additional sources of revenue – either from a side job or business you start yourself, rental properties, or whatever. You don’t want to get a bad surprise and see your income drop to zero.
2) Save more. The old notion of a rainy-day fund remains solid, especially if you’re in a career like sales where income can rise and fall. And if you have your own business, you definitely need to set aside a backup fund not only for emergencies, but in the case of a recession you could face an increase in accounts receivables as once reliable customers feel the pinch themselves.
3) Monitor your investment portfolio. In 2008, massive numbers of Americans took a serious haircut when the stock market plunged – wiping out their retirement dreams in the process. While over-tinkering is never recommended, failing to stay current with market trends and making sure your portfolio remains up to date is just wise.
Predicting financial gloom has always been a great business tactic for “experts” – and over the long haul, that blind pig will get the acorn someday. But worrying about tomorrow over things you can’t control doesn’t do your investments or your blood pressure any good.
What CAN help is a chat with us where we go over your current investments and situation and then craft a plan that secures your future regardless of which way the financial winds blow. Give us a call at 513-563-PLAN (7526) or click here to set up your free review today.
Regards,
Dan Cuprill, CFP®