These are certainly challenging times and by paying attention to these three areas, I believe you can bring some peace in to your financial picture!
1. Set a higher priority on building up your liquid savings, rather than your 401(k)
There is no sense in setting aside for your tomorrow if it puts your “today” in jeopardy. First things first. In order to be financially healthy, we need cash reserves; how much is up to your individual comfort level. Things come up in life which require quick access to cash, if there is no cash saved up, imprudent choices are made such as taking a withdrawal from your 401(k) or IRA and paying all the taxes and penalties (if applicable).
2. Conquer your purchasing passions.
Yep, good old-fashioned delayed gratification. Paying interest on credit card purchases makes for a profitable credit card company, not a profitable you!
3. Secure your income.
If you are not already doing so, it’s time to work harder and smarter than: a.) Your Co-workers, b.) Your competition (If you are self-employed). Every industry is experiencing increased competition. Be the best, stay ahead of the changes in your specific industry. This may mean that you take the initiative in reading up on “shifts” or new developments in your industry, thus increasing your value.
My take on the “appeal” to invest in Gold
Your 401(k) could supplement, but not replace your retirment income planning. Here’s why...
The Financial Media is always looking for the next “Hot Tip”, listen to Mark’s response to Alexis’ question.