How Do We Weather This Turbulent Economy?

The news stations seem to be bombarding us with the bad news of our current economic situation. It inspires fear, dread and uncertainty in our lives. How concerned should we be? Is this a disaster waiting to happen? I am no expert, but I do know that if we are prepared, we shall not fear (D&C 38:30).

The experts from Investing In An Uncertain Economy for Dummies say: “Uncertain economic times come and go. These times can be especially challenging if you aren’t prepared for them. No one knows exactly when a major economic event will occur or what it’ll look like, but if you’re prepared, you stand a good chance of weathering it.”



How can we prepare for what is to come? Follow the counsel given from the First Presidency found in the All Is Safely Gathered In pamphlet. If you don’t have a copy, look online at http://www.providentliving.org/ or ask a member of the bishopric, Relief Society or Elder’s Quorum presidencies. Another great resource from the church is the One for the Money (pamphlet by Marvin J. Ashton) that can also be found online.

If you have the basics under control and are still concerned about how to invest in this economy, here are a few tips from Investing In An Uncertain Economy for Dummies:

· Make sure you have a cash reserve (emergency fund) in a safe, secure, accessible place such as a savings account or money market account.
· Stay out of debt. Pay off your mortgage as soon as possible.
· Keep your job skills current and broad.
· Diversify your investments. Mutual funds are an easy way to diversify.
· Avoid the next hot investment. Follow the church’s advice to “Avoid all proposals for high-risk investments and get-rich-quick schemes.” (One For The Money)
· Keep investing on a regular basis. Automate your savings - if you are investing regularly regardless of the economy, you are taking advantage of the lower prices. “A decline in prices means investments are on sale.” (Investing in an Uncertain Economy for Dummies)
· Don’t panic. If you sell now, you will eventually be buying again (buying high, selling low). “Don’t watch, listen to, or read too much commentary. During a downturn, the news media has plenty of disheartening stories. The talking heads and bloggers are there for infotainment, not to make you money.” (Investing in an Uncertain Economy for Dummies)