Tips to Make Good Financial Moves Amid Bad Financial News
When the headlines herald bad financial news, follow these tips to make good personal finance decisions and protect your financial future.
"Feds to Bail Out Large Investment Bank"
"Stocks Post Biggest Losses For The Year"
"Home Values Drop To Multi-Year Lows"
"Gas Prices At Record Highs"
"Retirement Accounts At Risk"
"Employers Expect To Cut Jobs"
When you see headlines like these on the news, you may worry about your financial future. You may wonder what you should do, or if you should do anything, in response to bad financial news.
No matter what the economy is doing, or what's happening on Wall Street, here are some tips to stay financially sane in the middle of bad financial news.
Don't do anything rash.
You may not make the best financial decisions if you act rashly. Because bad news gets more attention than good news, you may not be getting the whole story around a particular financial issue. Ask a financial expert before taking any action on a particular financial issue, and consider a second opinion if you get any advice that may not seem right for you.
Don't wait too long to act, too.
If you're having any payment difficulties with your mortgage or other debt, talk to your lenders right away, because the sooner you talk to your lenders, the easier it is to make the best financial moves for your situation and the more options you have.
Prioritize your spending.
Look at unimportant expenses that you can get rid of, things that you can sell for extra money, and other ways to cut costs and bring in more money. Also, look at which bills need to be paid first and which bills can wait in a crisis.
Plan for the unexpected with an emergency fund.
It's a good idea to have an emergency savings account with at least three months' expenses saved in case you lose your job, get sick or hurt, or face a significant one-time expense. If you already have an emergency fund, now may be the time to add more money to it. Debt consolidation and home refinancing are ways to free up extra money for emergencies.
Think about consolidating your debt.
Debt consolidation may help you manage your debt and save money by lowering your interest rates and the amount you owe every month. Debt consolidation may also help you organize and streamline your finances with just one payment. For more information about debt consolidation, visit our Debt Consolidation page.
Look into refinancing your mortgage.
Now may be the time to refinance your mortgage for a lower monthly payment, lower interest rate, or to change your adjustable rate mortgage to a fixed rate mortgage, which can free up extra cash to pay down debt or save for emergencies. For more information about refinancing, visit our Mortgage Refinance page.
Protect yourself.
Make sure you get any promises or details about any financial transaction in writing, ask legal or financial experts to help you understand anything that isn't clear, and avoid agreeing to anything that seems too good to be true or too easy to do.
To make good financial moves in the middle of bad financial news, don't act impulsively; but don't wait too long to act, get the right advice and follow it. Whatever the economy is doing, it's always important to prioritize your spending, plan for the unexpected, and take control of your debt.
These are general recommendations not applicable to all financial situations. Every financial situation is unique. Further, the suggestions and recommendations contained within the content provided are not an assurance of any future result. Be sure to discuss your specific financial circumstances with a legal or financial expert. Contact us for more information.
