Happy New Year !
Last year was mostly volatility and uncertainties. Companies going belly up, US Recession, and Global Economic slowdown were just few events I never thought I’d see in my lifetime. But, do we now see the light at the end of the tunnel?– NOT QUITE.
For me, 2009 will be a year of extreme caution as nothing is certain anymore. Save harder, and be sure to stay diversified.
How to face 2009? Let me count the ways:
1. SAVE SAVE SAVE. Save harder than ever. Save for the short, medium, and long term goals. May it be for a new gadget, for a car or house downpayment, or for a business, be sure to religiously save a portion of your monthly salary.
2. Stay away from DEBTS (especially credit card debts). If your investments don’t earn you any money, at least don’t lose some by paying interest rates and finance charges. It feels great to have 0 credit card debt — trust me. If you don’t have a good reason for taking up a loan (car or house), then never be tempted. Most people avail of salary loans just to buy new clothes, gadgets, and go on vacations — WHY?
3. Diversify your PORTFOLIO. Start the year right, re-balance your portfolio, and be sure you’re not over-exposed in any instrument. Depending on your risk appetite, select a balanced portfolio that works fo you. For me, i will keep my positions in Stocks, Mutual Funds, Bank Products (both commercial and rural), and hopefully Business starting this year. I remain aggressive towards STOCKS. It doesn’t mean I’m buying now, but for sure I’m saving very hard to re-enter the market when the right time comes. Also, if you have placements in Rural Banks, be sure to stay within the PDIC limit — better be sure than sorry.
4. Stay away from any PONZI Scheme — when it’s too good to be true, it is too good to be true. Never risk your hard-earned money and voluntarily give it to heartless individuals.
5. Stay INSURED. Protect your assets and your loved ones. Never miss your car insurance and life insurance payments.
6. Know your NET WORTH and keep a BUDGET. If you have not started creating your SAL and PSIE, now is the best time to do it. How can you start SAVING, if you don’t know how much you can afford?
7. Stay HAPPY and BLOG more . 
