4 Do's And Don'ts For Personal Finance

We are still in the midst of the deepest recession inshould be doing. Investing when markets are at their
more than sixty years. Many American's have lostlowest will create a higher rate of return in the long
their jobs, have been forced to sell their homes at arun.
loss and are left wondering if we are ever going toDO KEEP A TIGHTER BUDGET: Another almost
get out of this mess. I decided to do a little researchstartling statistic is that alcohol consumption seems to
that may be useful in these troubled times andpeak during recession times. Rather than buy that
discovered some great do's and don'ts that may becase of beer or bottle of wine, save that money in
very helpful.your 'rainy day' fund. Besides, personal finances
DO KEEP SOME EXTRA CASH HANDY:  We all havedecisions are best not made when intoxicated
different styles of living however it is very importantDON'T MAKE DRASTIC MOVES: Stay focused with
to save for that dreaded 'rainy day'. According toyour plan. Those shares you used to purchase at $20
Business Week some investors recommend adjustingmay only cost $5 now and will be worth four times
your personal finance and saving $12,000 per adult,as much in the not so distant future. If you sell now,
another recommendation is to save six to nineyou will only get $5 for the share's you bought at
months in living expenses. Either is suitable but$20, also known as a substantial loss. The numbers
attempt to do whatever is best suited for you todon't lie.
keep the bills paid.DO CONSIDER STOCKS AS AN INVESTMENT
DON'T PUT ALL OF YOUR EGGS IN ONE BASKET:OPTION: The stock market for many people is a
That old adage holds very true with investing yourscary thing, especially if you aren't sure how the
money in good times and in difficult times such aswhole thing works. Many personal finance advisors
these. Imagine how traumatic it would be to loseagree that the next few years are a chance of a
most of your savings if the one company you hadlifetime to consider stocks. Do your homework and
invested in went bankrupt. I can think of a fewyou may find yourself in a very favourable situation.
major companies that have done just that in recentDON'T INVEST IN SOMETHING YOU DON'T
months and I'm certain there will be more. InsteadUNDERSTAND: As I eluded to in the last point, do
you should diversify your personal finance's betweenyour homework with your investments. If Jimmy
fixed income and stocks also try to diversify thatfrom work has this 'great lead' on a sure investment,
money between small and large companies.don't take his word for it. Research your investments
DO THINK ABOUT ENERGY COSTS AND SAVINGS:on your own before you make them. It's kind of like
Both American and Canadian governments aretaking a car out for a test drive before you buy it.
currently offering tax credits to home owners whoYou can never be too sure with your money.
make home renovations. Consider going green withThe best course of action to take for your personal
those upgrades. You will be able to write off somefinance's is to know where your money is invested,
of those expenses and you will save on your energybe patient and seek financial advice. Even though
bills in the long run.these times are tough, now is actually the best
DON'T STOP MAKING CONTRIBUTIONS TO YOURchance in nearly a century to make your investments
RETIREMENT: Personal finance decisions in recessiontruly pay incredible rates of return. Happy investing!
times. When everything is going well people tend toI used  businessweek . com as a reference for this
invest more. When times are tough people investblog post.
less. Ironically that is the exact opposite of what we