This Is A Test... Would You Survive?

By MAD21

There is a whole lot of advice out there these days about how to survive in today's fallen economy. Some really good, some not so good at all. Sell everything and freak out? Not such a good idea. Calmly look at your financial portfolio and decide on short and long-term goals? Pretty good advice.

Two important things I've learned. One, NEVER-NEVER invest money that you might need to use in an emergency (i.e., short-term savings account). Two, save enough money that if something catastrophic happened (i.e., losing a job; death of a provider; sustaining an injury that keeps you from working, therefore not earning income, etc.), you could survive for at least EIGHT months to a YEAR. The money that you save for that kind of emergency can safely be invested in CDs or something that can still earn a small amount of interest, but it's easy to get to, and the risk of losing it all in the stock market is low.

Investopedia is a pretty good website that talks about how to start saving. I, for one, would like to feel secure in knowing my family has something to fall back on in case the worst happens.

Today, there was an article posted on MSNBC regarding Obama's "Stress Test" for financial institutions. It has some good advice for how we can measure our own family's economy.