I suspect the average American gives the subject a glancing blow from time to time, but then proceeds with the attitude somehow things will work out in spite of our excesses. From time to time I feature an article that brings us up to date on the situation. Such is the case with an article by Howard Schultz from Fox News. I don't necessarily agree with all of his opinions, but most of this article is just plain fact about the worsening situation we face. I hope you read it to stay in touch with reality.
Here are a few things you should do to prepare for the day America must pay her bills. When that day comes our economy will face deep recession and perhaps a depression. So keep these things in mind:
In a bad economy you only keep what you own. Pay down personal debt now and avoid new debt.
Increase personal savings in the following ways:
- accumulate a modest amount of cash which you keep in your possession outside a bank. Place it in a creative, safe place accessible to you when you need it.
- next, save an emergency fund the equivalent to six months of your normal income. Keep it in the same bank holding your home mortgage. In a tough economy you would have funds to pay your mortgage which doesn't need to be moved from one bank to another.
- if you do not have a mortgage, great! If you have a larger amount of savings remember not to exceed the limit on the bank's FDIC insurance. Establish another account in a different bank as necessary.
- if you have an investment portfolio make sure it is diversified. A certified financial advisor can assist you in doing so. One thing that is common advice amongst financial advisors is to hold 10 to 20 percent of that portfolio in real gold. Gold is real money, holds it value overtime, and functions as insurance in a bad economy.
Finally, if you know the Lord, remember to lay your treasure up in heaven where thieves cannot break in to steal it and rust cannot corrupt it! Be wise in planning for temporal needs, but if you hoard wealth get ready for it to evaporate. Instead, use it for the cause of Christ and in so doing it is laid up in heaven.