What do I do now?

It is hard not to be discouraged by all of the recent press of impending doom. However, I believeit is now more important than ever to continue to focus on the basics. We have run from wise financial counsel in the past by borrowing more than we can afford, expecting continued appreciation of the stock market, and unlimited credit. Therefore, I believe it is important to focus on the basics.

This time reminds me of a quote that I believe is appropriate for the times. It was delivered by Randy Pausch as part of his last lecture. He said, "If you do the right things, good things have a way of happening." So, lets focus again on what the right things are.

1. Continue to spend less than you earn.
2. Save for retirement and continue to invest in a well-diversified portfolio that includes stock funds. We must focus on the long-term and continue to buy stocks even with the impending doom we read about on a daily basis.
3. Have a plan and work it. This includes developing a monthly or payperiod spending plan that has components of saving and giving.
4. Sweat the small things. We must plug up spending items that do not improve our financial position and do not help us towards our financial goals that we are working towards.
5. Defer expenses by distinguishing between the have-to's and the want-to's.
6. Do not rely on credit to fund your on-going operations or monthly budget.

These items are not by any means rocket science and if you are dealing with a lost job, home foreclosure, or a significant setback, you will need additional steps. Some ideas would be starting a part-time job, selling some of your stuff on ebay or having a garage sale, and brainstorming other ways to address your situation. You may want to call your lender or creditors to discuss your current situation.

Send me your questions or ideas to help others during this difficult period.