How to Ease Financial Uncertainty - dummies

How to Ease Financial Uncertainty

Part of Investing in an Uncertain Economy For Dummies Cheat Sheet

Life can throw you some financial curveballs, but you don’t have to be at the mercy of financial markets even if you’re not able to control them. To protect against financial uncertainties, use the following strategies:

  • Plan for life’s certainties and prepare for life’s uncertainties.

  • Invest in and protect your ability to earn money; it’s likely your most valuable asset.

  • Adequately insure yourself, your stuff, and your income stream.

  • Minimize or eliminate debt, and focus on building a great credit score.

  • Maintain an emergency reserve fund.

  • Invest for your goals, time horizon, and risk tolerance.

  • Diversify your portfolio across a broad mix of asset classes.

  • Monitor and rebalance your portfolio to maintain your target asset allocation.