Do not rely heavily on credit cards or lines of credit to cover emergencies. Banks are freezing lines of credit and credit card companies are lowering available lines of credit. You do not want to go deeper into debt for emergency expenses.
Asheville, NC (PRWEB) October 30, 2008
One of the most essential action steps toward financial protection is to create an emergency fund consisting of three to six months living expenses in a liquid FDIC insured banking account, such as a checking, savings, or money market. Jeff Palmer, ChFC Financial Planner, of The Palmer Group also recommends debt elimination as the very best step to weather a financial storm. Many families will find it difficult to eliminate debt and increase immediate cash flow in their current situation and Palmer offers various ways this can be achieved.
"Create a household budget to examine spending for non-essentials. By creating a list of expenses each month, one can see where s/he is spending money and where adjustments may be made," Palmer explains. After taking inventory of spending habits, sensible ways to decrease spending can be found.
Palmer's 9 essential steps for surviving the economic downturn are to create a budget, establish an emergency fund, reduce credit card spending, pay off debts, shop smart, sell unwanted items, explore second incomes, plan ahead and invest in the future. These 9 steps are clearly explained in the current newsletter edition of Sixty Second Parent.
One way to reduce lifestyle spending is to become a savvy consumer. Groceries are an expensive necessity. When creating a grocery list for the household, collecting and using coupons, and selecting items on sale can be a tremendous savings to the family budget. Palmer warns, "Do not rely heavily on credit cards or lines of credit to cover emergencies. Banks are freezing lines of credit and credit card companies are lowering available lines of credit. You do not want to go deeper into debt for emergency expenses." Even paying off a little each week will help to reduce debt.
According to Palmer, there is a real possibility of inflation in the economy due to the credit crisis. Inflation occurs when too much money follows to too few goods and services. It is based on the supply and demand principle. The effects of inflation impacts on prices at grocery stores, retail outlets, gas stations and beyond.
Nationally acclaimed pediatrician Dr. Olson Huff MD, of Sixty Second Parent, helps parents to develop healthier and more affordable eating habits for their children and reducing grocery costs at the same time. "Finding creative ways to encourage fruits and vegetables in your child's diet can be fun for the entire family," said Huff.
By offering more fruits and vegetables in combination with old favorites, parents can improve the health of their children and improve their budget. Implementing these simple steps may put you in a better financial position in good times or bad times. These steps will not come easily. They require changes in habits for the entire household. It is therefore important to set realistic goals and stick to them.
About Sixty Second Parent:
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