Saturday, 21 December 2013

Devise a game plan to minimize the financial damage – Ways to avoid the crisis

Posted at  10:42  |  in  Loan

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As the financial system of the nation thrives on the brink of yet another disaster, you need to devise a financial game plan through which you can minimize the damage. While we’re about to step into 2014, a look back at 2013, reminds us of the negative events like the scuffle over the raising of the debt ceiling and the federal shutdown that left thousands of government employees unemployed for few days. If you’re wondering about the ways in which you can manage your finances amongst this grim financial backdrop, you need to follow the advice of some experts. Staying on top of your finances amidst all odd situations is what we all aim for but most of us fail to achieve this goal. Here are some financial tips that you can take into account.

1. Check if your accounts are federally insured: Did you know that the Federal Deposit Insurance Corporation or the FDIC allows and guarantees deposits of around $100,000 per individual? One of the foremost steps that you need to take in order to minimize your financial damage is to check if your accounts are federally insured. If you hold an amount which is more than the aforesaid amount, you can spread them among multiple banks. You should use this facility as you’re paying for the insurance as a responsible taxpayer of the country.

2. Brokerage accounts should also be federally insured: The SIPC or the Securities Investor Protection Corporation usually guarantees you at different places like Merrill Lynch, Lehman Brothers up to $500,000, which includes $100,000 worth cash. The same rules apply with your brokerage firms where you should spread your assets across different firms.
3. Tuck in more money into your wallet: In this tough market conditions, cash is not only the king but it’s the king, queen, emperor and everything that it can be. The easiest way in which you can make a buck is by saving a buck. Remember that a dollar saved is a dollar earned and so you should axe down your family budgets and look for ways to save money here and there that is taking a toll on your wallet.

4. Buy some stocks if you’re an old investor: The investment outlook is certainly better today than what it was years back as shares are much cheaper to afford. World markets have plummeted by at least 28% from the peak of 2012. So, if you’re an old investor, you can look forward to investing in some cheap stocks of the companies that are successful enough.

5. Time to worry about your taxes: The graver the financial crisis gets, the more the taxpayers will be on the hook to avoid being affected by the financial meltdown. Sooner or later, taxes will go up anyway and therefore it’s time you worry about your taxes apart from anything else.

Therefore, when you’re worried about the path your personal finance will take during the tough course of the economy and the nation, you may follow the above mentioned financial advice by the experts.

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Jimmy Simond is founder of wallstreetsfinancenews.com he share his immense knowledge of finance in this blog. You can follow him on Google+.

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