Here is your 10 point financial plan

Rule No. 1: don’t panic. Rule No. 2: follow Rule No. 1

It’s easy to panic. All you have to do is hype yourself up about your crumbling investments and sinking savings and when you have a light sweat on your brow and you can feel your heart working overtime, go to bed and try to sleep. You are now safely inside the panic station.

The trick, according to the mavens and to common-sense, is to remain objective about your financial decisions and make sure that you have a plan B, one that will protect and grow your wealth, no matter what’s happening out there on the streets and in the marketplace. You also need to be strong and well-disciplined to prevent weakening in the face of financial bombshells.

Your 10 point financial action plan:

1. Take action
   Even if your finances are not in trouble, take action to ensure that they stay out of trouble. If your finances are in a bad state, take action to improve matters.
2. Reduce your monthly expenses
   Are you spending more than you earn? Act now. Take a Payday Loan to get you over this bump so you can think clearly and plan wisely. Create a monthly budget and prioritize your expenses.
   Reduce luxuries – put off the new car or that expensive holiday.
3. Pay your bills
   If you don’t pay you will eventually be blacklisted and lose access to credit. If you can’t pay them, arrange a repayment plan with the companies you need to repay.
4. Reduce debt
   List your debts and the interest rate for each. Don’t forget store credit cards.Rank your debts from highest interest rate to lowest.
   Pay off your debt that has the highest interest first.
   If you are still stuck with debts, arrange with your bank to restructure repayments.
5. Plan to cope with financial hardships
   When finances are tight, people are inclined to cancel insurance and “hope for the best.” But if catastrophe strikes and you have no coverage, your finances may never recover.Keep your disability insurance up to date.
   Rather than canceling short-term insurance, increase the excess or look for better quotes.
6. Build up a savings reserve
   This will mean that you won’t have to tap into your long-term investments if you face unexpected expenses. Consider a money market fund, where your capital is guaranteed and you receive high interest rates.
7. Make yourself indispensable at work
   Add new skills and look for opportunities to take on more responsibilities at work.Do whatever you can to avoid retrenchment. This is not a good time to go out on your own.
   There may be complex tax issues at this time. Get advice from your financial adviser before making any decisions about your pension and benefits.
8. Don’t forget your long-term investment goals
   Don’t let the short term recession wreck your long term investment goals.
9. Don’t make hasty or uninformed decisions
   Remember: your financial situation is different than that of your friends and neighbors. What may be good for them may be unsuitable for you.
10. Speak to your financial adviser
    Don’t make any decisions which affect your long-term financial well-being without getting good advice.