Protect Yourself From The Bad Economy

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Bruce AlmightyDo you know what is going to happen to you personally due to the bad economy? Is your name Bruce? By now you probably will have felt the effects in one way or another. This article looks into ways you can protect yourself from the impact of the recession.

From a personal viewpoint, four areas to consider are jobs, investments, loans and real estate. So let's look into each.

Scratch Ticket

If you have lost your job, then you need to get a new job. First, select a company where you want to work. They probably are not hiring, and have all the people they need, but don't let that stop you. Purchase lots of those gag scratch and win tickets, and give them out to people who work at that company. Then several people will think they won thousands of dollars and quit their 'stinking' jobs. With any luck, they will tell their boss what they were afraid to say before they won. This will create several openings. You then get to take one of the newly vacant positions at the same company. Note, that once you have a job, avoid any scratch and win tickets.

An alternative to getting or keeping your job, is to get lots of money. For example, you could win the lottery. Did you see the movie Slumdog Millionaire? Well, you could win Who Wants to Be a Millionaire, like the main character in the movie did. Althought I would avoid that scene where the boy jumps into poop! If that does make you rich, you could become a successful actor and win an oscar. You can then sell the oscar on eBay and make lots of money.

With regards to investments, the stimulus package does not compensate people who have lost over 60% of their life savings. This then requires you to retire much later, such as the Freedom 95 plan. If you need a job, see above. If you have anything left in your investments, you can either stick it out and see if the market will rebound, or you can move your money into something else. At present it seems like a crap shoot, since many formerly secure investments are no longer secure.

Credit CardsAs far as loans, you will find it increasingly harder to get them. For example, Amex is offering a $300 incentive for customers to cancel their accounts as the card issuer grapples with surging loan delinquencies and soft card-member spending. Of course, you may lose rewards points by enrolling in the offer.

As far as real estate, you already know that now is a great time to buy (it always is, ask any realtor). But that only works if you can get the financing. Credit requirements are gettng tighter as lenders are feeling the pinch. Be aware that if the housing prices continue to decline, your new home won't be worth as much as the outstanding balance on your mortgage. If that happens you have to hope that you qualify for relief under the new stimulus package.