Money Burning

Whenever the economy goes through a rough spot, it’s wise to take a look at your allocation of assets and consider whether it’s necessary to make changes. On one hand, the market works best for long term investors who ride out the dark waves and don’t need immediate access to those funds. But on the other hand, there are many steps that can be taken to ensure that investors don’t let a volatile market.

1. Continue to invest wisely

There is nothing worse that stopping dead in your traps in the middle of a volatile market. Don’t forget that a struggling market is a prime time to purchase long-term stocks. Be careful of certain sectors that are having particular trouble and always work with a professional financial adviser who can make sure that your actions don’t disturb your long-term goals. Always continue to invest in your 401k’s and IRA’s as these funds shouldn’t suffer long term effects of the reccession

2. International coverage

If the American market worries you and it currently should, consider taking a look at international EFT’s. There are emerging markets throughout the world including India and China who have yet to peak but have significant potential. Like the Nekei, be wary once these markets start to explode but they are a safe place to invest while the US Dollar falters. Also consider banking in a foreign currency - there are many markets like New York and Miami where this is an easy option.

3. Forget liquidity

When times get tough, access to funds is more important than ever. Investing in other ways, however, can financially add up. Precious metals are currently hitting record highs and while these may have peaked, it’s a particularly safe place to invest money without worrying about a turbulent market. Unlike real estate, precious metal prices continually rise, especially when problems arise.

4. Invest in yourself

There has never been a better time to invest in yourself. With the internet and niche education on the rise, there are virtually unlimited ways to gain an edge of competition. Decide which sector you are in (or are interested in) and do what is necessary to get ahead. If schooling isn’t an option, read and research as much as possible. Get out and talk to professionals about their careers and find new ways to earn money. Freelance writing and web design is providing a lot of people with some leeway as their investments falter.

5. Frugality

Forget the Starbucks and the Netflix. Save Save Save. Create a budget and cut out the extras while things are hard. Excesses like alcohol and cigarettes waste a lot of money that can keep your head above water. Consider carpooling to save gas prices, which aren’t expected to drop this year and take advantage of free programming in parks, school and private businesses.