By financen | January 14, 2014 - 5:27 pm - Posted in Financial Crisis, Financial recession

No one can forget the 2008 financial crisis. It’s been 6 years since then. Lehman was bankrupt. Major stocks went big time down. Home prices went down between 10%-20%. More than 2 million people became jobless.



There was a survey done on around 1000 adult investors and they were asked what they do differently. The question asked was what they think about money now vs. 6 years ago. And the findings are mentioned below:

42% of the adults are contributing more towards their retirement accounts or IRA. If you feel that you are behind in your savings, the best way to get this back on track is to just start doing it. Then you can set it up on an automatic basis. First you figure out an amount that you can easily save at the end of the month, and then set it up electronically. It is important that you pay yourself first.

Next 55% of the people feel that their retirement plan today is much better than the one that was before 2008 financial crisis. Why? They have done some good retirement planning. With good professional help, you can get a clear picture of how to fund your retirement lifestyle that works the best in your situation. You just need to set a budget and stick to it. You get a target rate of return that needs to be earned on your investments.

Another 42% of the people have increased their emergency funds. This is a kind of savings that can be used only during emergencies. This money is usually not invested for a long period of time. There are some people who will actually want to create an emergency fund before investing and keep on adding money towards it, before they actually start investing in shares or bonds. If you have not set money aside for emergency funds, you can do it now. You just have to shoot 3-6 months of living expenses in a savings account.

80% of the adults believe that they have a better knowledge about their finances now before the 2008 financial crisis. This is much better. Young adults are investing their time into learning, and this will definitely help them in making better financial decisions.

72% of the people believe that their debt amount is much less than what it were earlier 2008. It is important to know what you can and what you cannot afford. Paying down your debts is always good for your future. You need to identify the sources from where your money will be coming and use it to pay your existing debts. Also keep an eye on how much you are paying down every month. Sometimes we learn from our experiences. So the key thing is to use what we have learned and take actions.

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By financen | August 12, 2009 - 4:13 pm - Posted in Economic Crisis, Economy

The economy has been really terrible in the past few years and everyone is aware of the consequences in their individual daily lives. It does not seem like it is going to get better anytime soon. In the meantime, you really need to sell your home at a good price. You need to know how you can sell your home in the present market and get a good deal.

Be mentally prepared that you are not going to get over the price at what you bought your house for. In fact, you are not even going to get the price you paid for it either. You should know few things at least to get a good deal.

The first thing that you should be doing is not to get a realtor involved in selling the house for you. After a month, the realtor is not going to show too much interest in your house and will be more diverted towards those houses that will get sold in quicker time. Since you know the best about your house, it’s better if you sell it on your own. And if you involve a realtor, he is not going to charge a commission after selling the house. If you sell it on your own, you will save that brokerage.

Another way to make the selling of your house easier is to run an advertisement that catches the eye. Do not show in the ad that you are desperately looking for a buyer. You really do not want the buyer to think that he can buy your property at a cheaper rate. A buyer will always be looking for the cheaper price so you do not need to show that you are ready to compromise with the price. After 30 days, if the house is not sold, redo your ad so that potential buyers do not get this feeling that you are facing difficulties in selling your home for quite some time. By using the proper tricks, you can easily sell your home at a good price, despite of the lousy economy.

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By financen | March 16, 2009 - 4:17 pm - Posted in Financial Crisis

The two major markets, stock market and the property market have tumbled tremendously as a result of the financial crisis. Bank has adopted strict policies that have tightened the outgoing loans and it has aggravated the whole economy with its credit crunch. Most of the people’s 401K accounts have started shrinking and they are getting worried thinking about how to support their retirement. Many people have got their homes foreclosed by the banks because of non payments on their mortgages and thereby having no place to live.

The collapse of the US financial markets is deepening into an economic crisis. It’s not only affecting the financial institutions and the banks, but every common man. This recession has left a terrific impact on the whole world. The downturn momentum will not go away for some time. Nobody knows how long this is going to continue. More cases similar to Bernard Madoff’s Ponzi scheme will be exposed thus further weakening people’s confidence.

There are so many big names in the global market such as AIG, GM, Ford, Chrysler, CitiCorp etc. They have their top CEO’s, top executives, senior management who are blamed for their lack of vision, alertness to potential danger and readiness to change, that should have otherwise minimized the chances of this recession.

They are the elite people of all these international corporations. Nobody can doubt on their skills, knowledge and smartness. But the question here arises on their professionalism and ethics. They have been thinking too much on the short term instead of the long term visions. Monetary benefits would blind people from seeing the true big picture.. the hidden melt down of their corporations. We don’t see that vision for an evergreen healthy company anymore. Just thinking if they are too much focusing on their profits and related benefits that will help them only?  The pursuit of the quick dollar is contagious. It flowed from CEOs to their followers, then to the greedy people walking on their streets. This greed has further blind folded their judgment. They have lost their brain power as it becomes too much obsessed with greed for quick money. Many people bought stocks, real estates because they found a lot of money in it. Greed is all over the places in this world.

What’s to be done now? If you are planning for retirement, try to postpone it for a later date. It is time to start seeking for something new and meaningful. Use your knowledge and skills to earn money for you.

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