At the risk of sounding a bit too Chicken Little-ish, the sky is kinda falling out there. 🐣 We're not in full-blown economic or government shutdown panic mode but it never hurts to think about what could happen in the future. 🔮
You don't have to turn yourself into a certified doomsday prepper (just yet), but you should always be thinking about how prepared you are to weather an economic storm. ⛈️
Here’s Five Fast Facts on how to protect your Paycheck:
- 🏠 Save It for Later - Put off those big purchases until later. This is especially the case for purchases you'll need loans for, like a new home or vehicle. Government shutdowns tend to make the world a bit coo-coo, especially financial markets. Interest rates often spike in tough times, but the dust does settle. Delaying your big spends until you can get a more reasonable rate will save you big in the long run.
- 📊 Mix Things Up a Bit - Having a "well-diversified portfolio" is fancy finance speak for making sure your investment eggs aren't all in one basket. It's best to have a mixture of stocks, bonds, real estate, cash, and other investments so you can hedge your bets. If the stock market crashes but you have money in other places, you'll have a smoother ride through the storm.
- ✂️ Trim the Fat - Start cutting your expenses, sooner rather than later. Cancel all those subscriptions you never use and scale back on takeout. Use the extra money to beef up your emergency fund so it's nice and padded. If you're sitting on a savings pile, consider putting your money in a high yield savings account and make money on your money.
- 💳 Ditch the Debt - Pay off your debts as soon as possible, especially those with high interest. If you're carrying a credit card balance from month to month, a rise in interest rates during an economic crisis could wind up costing you big time. If you can't pay off your credit cards, look to transfer your balance to a card with 0% APR to save on interest.
- 👮 Call the Security Guard - If you rely on social security benefits, it's best to have a backup plan. Government shutdowns often cause delays in the processing and distributing of payments. It's never too late to start building an emergency fund to help you in a pinch. Putting even just a little bit away each month adds up big over time.
🔥Bottom line: These tips aren't rocket science and we're sure you've heard them all before. However, it helps to keep them front and center to make sure you have your ducks in a row. 🦆 Doing a little prep work now might save your butt later. Need to take a chill pill after all this doom and gloom? Here's what yoga and your finances have in common.
Which of these paycheck protection tips are you taking?
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