How to React to the Economic Slide
It's been all over the news lately. You can't seem to get away from it. It invades your home through the TV screen, your work with the talk at the water cooler and at church. It's the word that the American economy is on the brink. What will we do? What can we do?
Do you have a tendency to gravitate toward this negative news rather than push away from it? Are you consumed with worry about the markets? Here are a few easy ways to cope with the troubling news:
1. Don't panic. As you know in any situation, panic just makes it worse. Think Can I control this? Is my panic going to make it change? Of course, the answer is no. Take a few deep breaths and relax. Not only that, but turn off the TV, put aside the newspaper, and stay away from friends and coworkers that bring up caustic conversations about the economy. You aren't burying your head in the sand, you're staying sane!
2. Talk to someone who knows. So many people seem to be the experts, but have you actually talked to one who is? If you're wondering how things might change at your bank, don't consult the Indianapolis Star. Talk to your bank manager. In fact, the Chairman of Farmers State Bank has come out publically and stated that his bank will be affected very little, if at all, by the current economic situation. Get word from the top. Just as in anything, you're brother-in-law doesn't have a clue (unless he runs a bank!).
3. Check your finances and react properly. Nearly all of the economic issues revolve around credit. If you haven't used much, you don't have much to worry about. If you have used a lot, find ways to get out from underneath it. Focus your attention on budgeting and find the quickest way to get out from underneath the burden of "other people's money". Remember, no need to panic: simply take direct action to get your family away from the lure of credit. Not only that, but you'll be teaching your kids a valuable lesson. You'll teach them that cash is king!
4. But, what about my mortgage? First off, the largest amount of credit most people have utilized is their mortgage. It takes a long time to pay off and understand that the market will swing from good to bad twice of three times during the life of your loan. Work to make more than the minimum payment, or pay your mortgage every two weeks, meaning you'll make extra payments throughout the year. Either way, you'll chunk years off of your loan without much work.
5. Refer to Rule #1!
- Drew Kuespert
