Strategies to Help You Get Through the Hard Times by John Tesh

With all the bad news about the economy, a lot of us are asking the same questions: What does this mean for me? How do I protect myself, my family, and my financial future? Here are a few strategies that answer those questions – and may help you sleep better at night. This comes from More magazine financial columnist, Jean Chatzky: The fact is, a lot of people are already making sacrifices. A recent survey found that 61 percent of people are eating out less, half have postponed travel or put off a major purchase, and a surprising 1 in 3 people say they’ll retire later than they originally planned. Here’s what else our financial expert has to say:

Don’t fret about the value of your house. Yes, housing prices have fallen 6% in the past year, but unless you’re planning on moving, those numbers are meaningless. So, put them out of your head - because home values will go up again.
Double your just-in-case emergency fund. Experts recommend setting aside enough money to cover three months’ worth of expenses in case you lose your job or your car dies. During tough times, they recommend at least six months’ worth. Nine if you’re the family’s sole breadwinner.

Attach numbers to your retirement dream. The key is to know what sort of retirement you’d like: Will you be moving to a new part of the country or starting a business. Will you still be paying college bills and a mortgage? Once you figure out what that’ll cost, play around with an investment calculator to see how much you should be putting away. You can find a calculator at SaveforYourFuture.org. For example, save $40 a week, at 5% interest, and you’ll retire in 40 years with $245,000.
Remember that you CAN work after you retire. According to one recent survey, 63% of us expect to work for pay during our retirement. There is a silver lining: Continuing to work then will help stretch the money you’re saving now.

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