7 ways to position yourself for recovery

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7 ways to position yourself for recovery

  1. 1. Entrepreneurship Ref: 0007INVESTMENT NOTICE: Message Web Site Content LimitationsWe make no guarantees as to the accuracy, thoroughness or quality of the information on this web site, which isprovided only on an “AS-IS” and “AS AVAILABLE” basis at User’s sole risk. Investopedia shall not be responsibleor liable for any errors, omissions or inaccuracies in the web site content. The information and investmentstrategies provided at this site are neither comprehensive nor appropriate for every individual. Some of theinformation is relevant only in Canada or the U.S., and may not be relevant to or compliant with the laws,regulations or other legal requirements of other countries. It is your responsibility to determine whether, how and towhat extent your intended use of the information and services will be technically and legally possible in the areas ofthe world where you intend to use them. You are advised to verify any information before using it for any personal,financial or business purpose. The web site content and services may be modified at any time by us, withoutadvance notice or reason, and Investopedia shall have no obligation to notify you of any corrections or changes toany web site content.7 Ways To Position Yourself For Recovery7 Ways To Position Yourself For RecoveryIn a gloomy economic marketplace, its easy to have a negative outlook on the future. Many become worried aboutthe state of the economy and simply focus on surviving and staying afloat amidst the uncertainty.What many of us forget is that economies recover, although we rarely know when. But if you prepare yourself forthe road ahead, your financial outlook for the new economy will leave you sitting pretty. For further information on this article and the coaching programs available please contact: Image Group International Asia Pacific Head Office Tel: (+61 3) 9820 4449 E: info@imagegroup.com.au W: www.imagegroup.com.au ©2009
  2. 2. Know Your Time HorizonIts important to make sure your investment goals are aligned with your investment time horizon. Reviewing yourinvestments and making sure that those investments are still appropriate for the stage of life you are in or will soonbe entering is extremely important.Individuals approaching retirement will have much different needs from their investments than young graduates justentering the work world. Aligning your goals with your investments is fundamental to being a successful investor.Lock In Low RatesDuring times of economic uncertainty, it is not uncommon for interest rates to drop to very low levels. At times likethis, it can be in your best interest to take advantage of lower interest rates, especially for homeowners. Locking inat a low interest rate for five or 10 years can save mortgagors thousands of dollars over the course of theirmortgage.Even if you are locked in at a higher rate already, you might still come out on top by remortgaging at a lower rate,even after paying penalties associated with renegotiating that rate. Weighing all your options to make the bestdecision can really pay off. For further information on this article and the coaching programs available please contact: Image Group International Asia Pacific Head Office Tel: (+61 3) 9820 4449 E: info@imagegroup.com.au W: www.imagegroup.com.au ©2009
  3. 3. Pay Down DebtIt can be easy to run up a big debt load when the economy is not cooperating, but this is not a smart move in anyeconomy. Instead, take advantage of the economy. Typically, low interest rates can help you pay off your debtsmore quickly, as more of the payment will go to principal rather than interest.Paying off high-interest debt, such as credit cards, should be the first priority for people during uncertain economictimes. Carrying balances on high-interest debt vehicles can make it very difficult to build savings whenthe economy turns around.DiversifyWeve all heard the old phrase "dont keep all your eggs in the same basket". This old adage couldnt be more truewhen it comes to your investments. Keeping a diversified portfolio of investments protects your nest egg fromrisks that can ravage your portfolio.Its no coincidence that the professional money managers who are constantly preaching to investors aboutdiversification are the same ones who tend to escape market downturns and negative economic news in a farbetter position than those who dont. For further information on this article and the coaching programs available please contact: Image Group International Asia Pacific Head Office Tel: (+61 3) 9820 4449 E: info@imagegroup.com.au W: www.imagegroup.com.au ©2009
  4. 4. Make A BudgetIts hard to believe that many people still do not take the time to create a budget. For those who have refused to sitdown and take an objective look at their spending habits in the past, there is no better time than during anuncertain economy. Simply sitting down and comparing spending habits to the amount of money you have to spendcan be a real eye-opener.Quite often it can be easier to ignore the obvious or put off financial planning for another day. However, by knowingyour financial situation and knowing steps you need to take to achieve your goals, you can put yourself on the pathto a positive and successful financial outlook.Dont Go At It AloneIt can be difficult to make a financial game plan when you dont have the slightest idea about personal finance.Fortunately, you dont have to go at it alone. Talk to your financial planner, and if you dont have one, go get one.Financial planners are trained professionals and personal finance is their forte.A financial planner can help you set up a financial game plan and make sure that you stick to it. Take the time tomeet a few financial planners and get a feel for them as people. You should be 100% comfortable dealing with theperson who will be helping you handle your finances. For further information on this article and the coaching programs available please contact: Image Group International Asia Pacific Head Office Tel: (+61 3) 9820 4449 E: info@imagegroup.com.au W: www.imagegroup.com.au ©2009
  5. 5. SmileDont let tough economic times get the best of you. Feeling stressed about money is an issue for everyone, butworrying about things that are out of your control only adds to your stress. By putting a smile on your face andliving your life with passion and enthusiasm, youll find that the everyday stresses of life wont bother you the waythey used to.By using the tools weve discussed here, you can put yourself in a position to be financially confident in your futureprospects when bad economic times turn around. For further information on this article and the coaching programs available please contact: Image Group International Asia Pacific Head Office Tel: (+61 3) 9820 4449 E: info@imagegroup.com.au W: www.imagegroup.com.au ©2009

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