Become Financially Secure at Any Age

Suffering through the worst economic conditionsIn Your thirties
since The Great Depression, Americans haveKeep at least $1000 in an emergency account.
learned a great deal about how to manage andThe emergency fund takes precedence even
invest their money; they also have learned a lotover your retirement and future income reserves.
about how not to invest. As economic prospectsYou should keep at least $1000 in a regular
improve and Americans develop courage tosavings account, so that you have some defense
venture back into banking and financial markets,against major car repairs, serious appliance
they can put their lessons to good use, applying allbreakdowns, unexpected medical expenses, and
they have learned as they build financial securityeverything else Murphy's Law encompasses.
regardless of their age.Because most American families live just one
In your twenties...paycheck away from financial disaster, your
Become your own "first creditor."emergency fund may guard you against
You are not saving for some vague and mysticalhomelessness, loss of your car, or other
"rainy day" when you need a little extra moneycatastrophes. In priority order, you should save to
to support yourself and your family. Instead, youthe emergency fund, then save to the retirement
save for the sake of meeting your obligations andfund, then pay your bills.
maintaining your lifestyle as economic conditionsBuy and hold real estate.
fluctuate. Because the New Depression blew-awayAs you accumulate some serious savings, divert
all the old rules about savings and investments,some of them into income property-a second
you must start over with expectation that youhome, a duplex, or a small apartment complex.
cannot depend on retirement accounts, pensions,Do not get tangled up in the nasty business of
and Social Security to support you in your old age.flipping. Buy and hold, taking advantage of
Take charge of your money now, setting aside atsubstantial tax deductions on your rental business
least 10% of each paycheck for "eventually."and the property itself. Although the housing
Experts say that Roth Retirement accounts and"bubble" has burst, land always appreciates. In the
401(k) accounts will regain most of their value;short term, you will realize and improvement in
but the New Depression has taught theyour monthly cash flow. Over the long haul, you
importance of one keyword-Diversify!will see a handsome return on your investments.
Establish and maintain good credit.In Your forties...
If you have struggled through the downturn,Invest in stocks or an indexed annuity.
scraping to make ends meet and makingDo not sell your more conservative investments,
payments as you can instead of when you must,gambling on a higher return elsewhere; but
you are by no means alone, so that lendingdiversify your investments with income from
agencies and creditors have become slightly moreyour properties. Although you must show healthy
forgiving. Still, your credit report often determinesrespect for everything that may go wrong on
not only your quality of life but also yourWall Street, you also must see the lessons in
employment prospects and your access to somehistory. If you had purchased an indexed annuity
of life's greatest rewards. As the economyas the Dow hit its 2008 low, you would have
improves, however, you aggressively must rebuildrealized nearly 40% gain during the first half of
your credit. Be wary about commercial debt relief2009. Economies, like all living organisms, have an
services and bankruptcy attorneys, but read-upin-built propensity for growth. Tie your
on all their tools and strategies for rebuilding yourinvestments to their long-term growth.
credit. Then, put them to use.