How to Prosper in a Bad Economy

The economy is down and is likely to be for quite some time. Follow these steps to learn how to prosper in a bad economy.

Difficulty: Moderately Easy

Instructions

1. PAY DOWN DEBT
   
   Not only is paying down debt a guaranteed rate of return, it's one of the highest rate of returns you're likely to see.
   
   Look at the interest rates you're currently paying on credit cards, car loans, home equity loans, and even mortgages, and compare them to the rates of return you're likely to see in other investments. Chances are you're paying interest on debt that that you can't be assured of earning anywhere else.
   
   In addition, getting out from under debt will help you shore up your financial position should you suffer a job loss or other fallout from the bad economy.

2. REAL ESTATE
   
   If your financial position is secure and you're in the market for a home or other type of real estate, now might be the time to buy. Real estate prices have dropped significantly in many parts of the country so if you're a qualified buyer, you may be in a great position to strike a deal.

3. THE STOCK MARKET
   
   Similarly, it could be a great time to grab up some bargains in the stock market. You know the old adage: buy low, sell high. Jumping in while everyone else is jumping out could be a very smart move.

Tips & Warnings

• The steps in this article should not be taken as financial advice for your particular financial situation. Make sure you educate yourself about money issues and, if appropriate, consult a financial advisor.

Resources

• Crash Proof: How to Profit From the Coming Economic Collapse
• Bad Money: Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism
• The Little Book of Bull Moves in Bear Markets: How to Keep Your Portfolio Up When the Market is Down

[Scarlett9284]

on 10/25/2008 Good tips, thanks

[showpup]

on 10/15/2008 Good tips