No. of Recommendations: 7
I have a few equities, and am looking for more in a small way, but I can't see putting my life savings at risk right now.

Then it becomes of paramount importance to do some serious thinking about what defines "risk" in your environment. Is there more risk to having one's wealth (or a portion of it) confiscated (a la Cyprus) or more risk to having one's interest rates on debt service start rising?

Is there more risk to one ability to increase (or even maintain) one's income or to one's ability to pay increasing household bills?

Is there a better rate of return on paying down credit balances or a better rate of return on invested assets?

It seems to me as though we are all living in a world represented by a spinning top and that the spin is becoming more eccentric (more serious wobbles). The answers for one may not be applicable to many or even any others.

When I talk with friends and have conversations about how to plan and respond to current times the issues I like to address have not changed much, even with the increasing wobble: If you must carry debt, get as much of it at a fixed rate as possible. If you are carrying a lot of debt, it might be best to pay it down to a level where it will be sustainable in a crisis. Make sure you keep your larder full and to rotate the food so that you don't end up wasting some. But most of all, plan as if tomorrow will be much like today, because if it is, then you'll be OK then because you're OK now.

Taking some conservative preventative measures in uncertain times is not unhealthy unless one lets themselves get carried away.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.