State of the Ecomony: Should I Panic?

Wow, I just checked my 401k and to say I am disappointed at its current state of affairs would be an understatement, and I am sure I am not alone in my thinking. With the Dow going up and down along with all of the other market indicators, some of you may be in panic mode right about now. So what should you do? The main thing to do is not to panic! Easier said that done, right? Well, here are some things to think about.

1. Check your portfolios and review where your money is and how each of those avenues is performing at the moment. If you need to tweak your allocations a bit, be wise and do what makes you comfortable, but remember that the time to buy is when stock prices are low. If you can afford it, now is the time to buy.
   
2. I would suggest NOT pulling all of your money out of the market, bank, or other money saving realms and stuffing it in coffee cans and burying them in the backyard. The economy and stock market will rebound. History proves this to be true. It may be a little scary but you will be best to ride it out. What I can guarantee is that your backyard will give you a big fat doughnut of an ROI on your investment whereas the market may scare you a bit, but will, in time, give you a positive ROI.
   
3. Evaluate your everyday spending habits right now and cut back if you need to. If you can save a little bit now, it will pay off in the long run. Please remember, the banks are insured within the limits of what the majority of the people actually have in their checking and saving accounts.

I know this sounds easier said that done, as mentioned previously, but you just have to trust the system. Our economy has always been strong and even when tested, always bounces back. Just take a deep breath and do what is comfortable for you, but whatever you do, DON'T PANIC. Make wise and educated choices, especially now.