Do you ever find yourself not knowing what to do? Don’t follow the herd mentality. Instead ask yourself this simple question – What is the herd doing right now? Then do the exact opposite. These are things you may consider to prepare your Financial Future in a failing economy:-

In A Failing Economy Here Are Some Things You shouldn’t Do

Bail out. Right now everyone is running around dumping stocks or equity mutual funds now. This is silly as the values are especially low and it is simply guaranteeing that you’ll turn paper losses into real ones. Even if there’s more downside to come, staying on course often pays off during times of economic uncertainty. You’ll only realise a loss if you sell. What happens after a recession? A Boom. What happens after the sun sets in the west? It rises in the east.

Stop saving. Those regular contributions you’ve been making to your savings or retirement accounts are an important part of good financial discipline, and there’s no reason to stop them now. The strategy of dollar-cost averaging your investments–making periodic contributions to your accounts, regardless of where the market is heading is still good advice.

Speculate. Lower prices for investments create opportunities, however betting on the market will get you into trouble. Particularly with the wild swings we are witnessing right now. Smaller, investments are generally better than large, hasty ones which are intended to make a quick killing. So be especially wary of tips you get via e-mail, the Internet, or elsewhere for certain stocks, commodities, and other it will never fail opportunities.

Take on new debt. Sometimes it is necessary to take on new debt to make repairs on your home or put your child through college. Be aware that economic downturns most often affect job stability and investment income which makes it particularly difficult to determine the level of debt you can handle. If you must borrow, make sure you have examined all the avenues and risks. Especially when you plan on using the equity in your house.

Stop living. It is true these times demand you take precautions, however you do not need to over-react. Life goes on. You will still buy gifts when you take your family on vacation during the holidays. Don’t over react and put off doing the much needed maintenance on your home or car or worse cancel insurance policies. Doing this could have a negative impact down the track. Instead review your spending carefully and make cutbacks where necessary.

You need to think outside the box and do something completely different to create a more stable financial future. Taking on extra work is not where I am going here. Think Plan B. Don’t be scared, instead I want you to think strongly about starting or ramping up your Plan B. It is very important that you re-plan how and where you earn your dollars.