Joan Sotkin  

Show Notes

• Archived Blog Post

  Date / Time: 10/7/2008 5:30 PM UTC

  Be Cautious, Don't Panic
  

  There was an interview on NPR with a columnist from The Financial Times who pointed out that during past recessions, most people have held on to their jobs, their homes, and their income. His advice for now, be cautious but don't panic.
  
  I've spoken to a number of people in the last few weeks whose lives have mostly been affected by rising prices and/or dropping value of their investments. For many, this is combined with a general feeling of alienation from the niceties of life and the uncertainty generated by the presidential campaign. It's difficult to feel grounded and focused.
  
  Generally we're in a wait and see mode, as we wait to get a glimpse of how the financial chaos is going to shake out. This is a time of caution. It's not a good time to take great risks in either your business or personal life. Rather, it's better to carefully consider any purchases or major moves, and if possible, wait. Unless you are faced with an emergency, wait.
  
  It's also a good time to plan for your future--to ask yourself what you really what you really want to do with the next segment of your life, and spend time doing the research you need if you want to move in a new direction.
  
  It's also a great time to start improving your financial literacy and understanding of the financial world so when things do turn around, you'll be ready. I know people who are poised now to buy things at bargain prices with the knowledge that they will benefit in the future.
  
  Because times are leaner, staying in close touch with your money is a wise move. Now is the time, if you haven't done it before, to start keeping track of your spending and earning and getting to recognize your own patterns. This is the time to cure your financial vagueness syndrome.
  
  For a basic plan for doing these things, read my book Build Your Money Muscles. For a more advanced "course" in developing practical financial skills and overcoming issues like a not-enough or just-enough financial habit, read about Build Your Money Muscles for Financial Strength & Security.
  • Tags:
  • financial fear
  • money
  • finance
  • business
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