Feeling Fear about the Future of Your Money?

Essential Knowledge interacts with many people through our programs. Fear is everywhere. It is in the air we breathe and the water we drink. As a result, people are jumping to some pretty crazy decisions. Recently, one of our team members shared this personal rule she sticks to:

In times of great change, change as little as possible. What does this mean? When craziness is all around you, do not hit the panic button. Sure you should look at your overall financial picture, but be smart about it.

This means not to give in to¬†Money Madness. Here are three ways to avoid doing so…

Do NOT put your money in your mattress! Now is not the time to take money out of your bank and keep it at home, unless your bank is not FDIC insured. Despite the rumors, banks will continue to be the best way to house your money for checking and savings.

Do NOT withdraw your money from your investments completely. Too many people are concerned that because the stock market is shrinking, that they are better off holding onto their money in a savings account or at home. This is a simple question of math. If you have five years or more until retirement, your best bet is to keep that money invested. The taxes and penalties to withdraw those funds will most likely never be made up in the interest on a savings account. You may want to visit with your advisor to talk about your risk tolerance and make changes along those lines.

Do NOT be late paying your bills. Now, if you are unemployed, this statement may not apply to you. However, if you are gainfully employed, make sure that your payments are made on time. Most major credit card companies are increasing interest and fees to make up for default losses. Do not give your creditors an excuse to rack up additional charges on your accounts. Need to make a budget? Go to www.essentialknowledge.com/resources.

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