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HOME > PUBLICATIONS > Exclusive: The Economic Crisis – Coping as Individuals

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Five Sept. 11 Suspects to Face Trial in New York

The Obama administration has announced it will try 9-11 mastermind Khalid Sheikh Mohammed and other 9-11 Gitmo detainees in a civilian federal court in New York, allowing them the protections of the U.S. Constitution even though they are not U.S. citizens.

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Four Radical Chinese Muslims Transferred to Bermuda

Four Chinese Uighers (radical Chinese Muslims) were recently transferred to Bermuda. Do you think it's a good idea to release Gitmo detainees to idyllic vacation retreats?






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October 16, 2008

Exclusive: The Economic Crisis – Coping as Individuals

John Wallace

It’s okay to get scared by the latest headlines: that’s just your half-forgotten sense of self-reliance kicking back in! Neither the Government nor Wall Street has ever been your friend and likely won’t be either, regardless of who wins next month. As long as you understand this – the First Principle of this Brave New World – you’re probably going to be okay. So what do we do first?
 
Don’t do anything dumb! The first thing pilots learn in an emergency is to take their hands off the controls until they fully understand the emergency they’re in. Same way with doctors who are taught: First Do No Harm. Begin by seeking to understand your financial strengths and weaknesses – postponing anything drastic until you understand your own situation. Lost jobs, lower incomes and trouble paying bills will be the most general problems and the most immediate threats. Retirees who once thought they only had to worry about clipping coupons have seen the value of their retirement nest eggs plummet along with the stock market. So what? It’s only money, so don’t panic because there are some very specific things you can do. Telling you what those things are is the whole purpose of this new FamilySecurityMatters.org column, so keep checking back for updates! For today, keep three principles in mind: STASH, SAVE & SEARCH – Here’s how:
 
For Families:
 
1.       STASH whatever cash you can come up with in an FDIC-insured savings account at your local bank. It is not clear right now how many banks will ultimately be forced to close their doors so for now, a strong local bank may be your best bet, especially with deposits now insured up to $250,000.
2.       Just like in any other storm, keep enough cash on hand to tide you over in case of emergencies – but no more than you can afford to lose.
3.       Get rid of debt, which is like a mobile home in a tornado. For now don’t worry about losing frequent flyer miles or tax write-offs: JUST GET RID OF DEBT by any means short of holding up the local liquor store.
4.       Don’t quit your day job but DO start by asking yourself what else you could do if it disappeared – because it just might.
For Retirees or Others on Fixed-Incomes:
1.       SAVE the current value of your retirement nest egg by rolling them over into FDIC-insured bank Certificate of Deposits (CDs). We cannot repeat enough that the value of each account in now insured up to a maximum or $250,000, regardless of whether the bank itself goes belly-up.
2.       Consider returning to the work-force, especially if you have maintained the job skills that once brought you success. As you see companies or even whole industries failing, where does your experience tell you they went wrong? Might there be opportunities for you to help set things right once the dust settles? (More about this in future columns – promise!)
3.       OK, most financial advisors survive because they are experts at turning your problems into THEIR gold. Still: with all the rules changing as we speak, keep their phone numbers handy! Especially as you contemplate making changes yourself!
 
For Job-Seekers (which right now is practically everybody!)
1.       SEARCH for opportunities! Specifically try to link: things you are good at with skills that are needed right now in a market-place that has been badly disrupted (with the end nowhere in sight).
2.       Networking works – especially as the old patterns and hierarchies suddenly disappear. Connect with people. Volunteer. What is unlikely to change is an old rule: Most people find their next job through someone they know, even if those job or the skill-sets are brand-new.
3.       Dream! Take a risk. Do something you love to do but might never have imagined as your “dream job.” It might only one be one small but courageous step away!
 
Finally: Regardless of whether you embrace his particular theology, Reverend Robert Schuller is re-publishing his Christian classic from the 1980’s: TOUGH TIMES NEVER LAST! BUT TOUGH PEOPLE DO! Not a bad thought as well as an excellent reminder that, if you want to get a new idea, then read an old book. Maybe even a VERY old book!
© 2008 by FamilySecurityMatters.org and Business Battle Lab LLC
FamilySecurityMatters.org Contributing Editor John Wallace is a founding partner and Chief Financial Officer of Business Battle Lab, LLC (www.businessbattlelab.com ), a Texas-based firm helping clients to weather storms, financial and otherwise. John has over 22 years financial, operational and IT security experience in both the public and private sectors.

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