Monday, March 23, 2009

Helpful Money Tips for Living in Today's Economy


Posted By Lauren Cappelli


1. Make sure your bank accounts are federally insured
The FDIC insures deposits up to $100,000 per person. If you have more than $100,000, be sure to spread it around to different banks. Another option could be to invest them in a Certificate of Deposit Account Registry Service (CDARS). If you have over $100,000, CDARS takes your money and distributes it to various banks while keeping it all insured.


2. Save
Be mindful of discretionary spending. Try and cut back on things you may normally not even consider such as dining out and other things that are not essential.


3. Refinance your mortgage
Everything that has occurred on Wall Street caused a huge decrease of interest rates on US Treasury bonds. This usually leads to a decline in long term mortgage rates which will benefit you in the long run.


4. Don’t wait for your worst investments to “recover”.
Your worst investments probably will not recover. Reevaluating your portfolio and taking care of your worst investments will be more beneficial than waiting around for something that probably will never happen.


5. If you are investing for 5 years or more, invest in stock
Shares in today’s economy are much cheaper than they have been in awhile. Investing in them now while they are not expensive can provide higher returns in the future.




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