Sage Financial Advice From The Wall Street Journal

Sage Financial Advice From The Wall Street Journal

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Scanning through the Wall Street Journal recently I came upon an article that answered many of the questions I had about the current economic meltdown. The article which was written by Brett Arends mortgage statementand titled, “Ten Ways to Protect Your Finances From the Crisis” gave step by step instructions on what the financial panic means to the consumer.

Because I’m respecting copyright law, I can’t reprint the article here, but I can share with you some of the highlights of what Arends said in my own words:

Is Your Money FDIC Insured? If you are accustomed to leaving large sums of money in the bank, you need to make sure that you have no more than $100,000 per account per person. If you have more than that amount, then insurance coverage will not be adequate. Spread your money around to different accounts and different banks.

Get A Home Equity Line of Credit Now. No one likes to encourage people to borrow money (except for lenders) but having access to a home equity line of credit can be useful. Tap it when you want and for what monies you need, but apply today as credit restrictions are tightening.

Get A New Mortgage! Although we haven’t seen much evidence yet that mortgage rates will be heading down, if you are in a position to refinance your home, then taking advantage of the current climate could aid your wallet. Naturally, avoid any lender who has been in the news lately — for all of the wrong reasons!

Relax. One of my neighbors has been in a panic all week, which can lead to acting irrationally. Then again, if your money is exposed and you are worrying about losing your shirt, your concerns are justified.  Just remember this: you can’t do anything about the crisis, but you can relax and find something to do that will take your mind off of the news.

Think Long Term. This strategy is what Warren Buffet is taking, a man who knows how to invest. As the head guy behind Berkshire Hathaway, Buffet is currently snapping up certain stocks which have dropped tremendously. Bad news for one person is often an excellent opportunity for someone else.

Like I said, I can’t share everything about the article, but you can click on the link at the beginning of this article and learn how to ride out this crisis. By the team that you read this the federal government’s planned intervention should be just about ironed out, taking the sting out of a the financial meltdown.

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Categories: Consumer Financing

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