The stock market’s up, unemployment is down, and it’s an election year. Happy Days are here again! Or are they? How are you doing? Are your family finances better this year than last? Is your job more secure? Is your home worth more? It may be time for a reality check.
Don’t count on the rising tide to “lift all boats.” Yours may be the one that gets stuck on the reef, or sinks. My advice is to take a cold, hard look at your finances. Right now! Total up all your assets (house, car, investments…) and subtract your obligations (mortgage, credit card balances, payments, etc.) to calculate your Net Worth. You may be surprised. When you use today’s valuations for your assets they could be substantially less than you thought.
Do like businesses all over the country are doing. Reduce expenses! Retrench, set aside more for investments and reserves. Rework your budget so that it’s leaner. We all hope 2012 is the turnaround year. And it may be. But position yourself for the long term – a lifetime.
