This great quote was heard recently on Dave Ramsey`s radio program: Desperation is the mother of broke.
This quote and others like it from well-known financial advisors admonishes us to stay the course with our financial plans in spite of some turbulence occurring around us. These are the principles you need to embrace and live by all the time, not just in the tough times:
Do not put all of your financial eggs in one basket. Spread your money and accounts among several different companies. That way, if one of them has a problem, all of your money will not be tied up with that organization. Look for the reputable companies. The ones that have been around the longest usually provide the safest haven for your money. Check the track record of that company to see how well they perform for their customers. Keep in mind that they are there to serve you, not the other way around.
Do Not Act on Emotion.
Some are considering pulling out some money and keeping it in a safe inside their house. This is foolish logic. If the financial markets were to crash, that money would not be worth anything either. Now, having said that, it is not a bad idea to have an emergency fund of cash. Probably in the neighborhood of $1,000.00. But reserve it only for emergencies like car repairs, major appliances, etc.
Think Long Term.
Those with a long term view towards finances are the ones who are the most successful in getting the returns that will help secure their financial future. It helps keep your perspective by thinking long term. In this way, you avoid making moves with your money which places it at higher risk.
Look for opportunities.
Most of those who have a doom and gloom outlook on life do not see opportunity. But, they are there. When the markets are down, it is a good time to buy. Houses are less expensive during these times. Good buys are everywhere as long as you are shrewd and educate yourself on what to look for and where it can be found.
Face the fact that troubling times come and go, but the truly successful among us learn to ride them out and come through them with little or no negative effect on their financial picture. Be on the lookout, be vigilant and grow your money!