It seems like the words “fiscal cliff” are mentioned every few minutes on every news broadcast I read, see, or hear.
This “fiscal cliff” is a combination of expiring tax reductions/exemptions, increasing insurance and living costs, as well as a faltering economy. Just hearing the way that news people are discussing it is enough to make one fearful – even if we don’t even know what the “fiscal cliff” really entails. Here are some ways to prevent the “fiscal cliff” from impacting you:
- Maintain substantial financial margin. There is nothing like having money in the bank for emergencies and to cover surprise expenses. It also allows you to better handle a job layoff.
- Lock in low interest rates. They are at record lows right now. It seems unlikely they will decrease further.
- Prepare and live by a budget. This allows you to maximize every dollar you have and ensures you will immediately recognize increases in prices being passed on to you.
- Own paid-for fixed assets. When you own your home with no debt, you have secured your housing situation – regardless of the economy. When you own your car with no debt, you have secured your transportation – regardless of the economy.
- Run all news reports through a “does this make sense?” filter. The media exists in large part these days to deliver “zinger” news. They want to shock you into listening. And, guess what? FEAR sells TV. Half of what I hear the media talking about is bogus “fear-mongering” nonsense.
We certainly are living in challenging times, but it has always been that way! Life itself is challenging, and that’s what makes it AWESOME!