1. Get personal.
This month marks a decade since Lehman Brothers went bust and taxpayers began the long process of bailing out big banks. It’s a good time to review some of the big lessons learned from the financial crisis. Here are 10 to consider:
When markets are in turmoil and you are scared, your personal situation should guide your decisions. The first step is to figure out where you stand and, more specifically, the status of your cash reserves, consumer debt and current retirement contribution level.
When we feel out of control, the simple technique of identifying what is coming in and what is going out can help develop short, intermediate and long-term game plans.
2. Develop a cash flow.