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  • Feb. 13, 2009

    Don't let yourself be dragged down by the economic meltdown

    By Edward T. Creagan, M.D.

7 comments posted

We are bludgeoned every day by the numbers. Here is what I am talking about:

  • Nearly daily stock market declines
  • Plummeting home values
  • Swelling ranks of the unemployed and medically uninsured
  • Shrinking retirement portfolios

So, what do we do? What can we do? This is the essence of stress: Circumstances that intimately affect us but over which we seemingly have no control. But, there are some things that we can do.

We are not hopeless victims. We are not corks bobbing on an endless sea.

I for one will not mortgage my serenity over these economic events, and I will not squander my peace of mind. Here is what my family and I do. I would certainly appreciate hearing from our blog community as well.

  • Know where the money goes. We have found that using one credit card gives us an easy handle on our expenses. (We pay off the charges each month so we aren't charged interest.) At the end of the month, we can review the statement and ask ourselves if we made good choices: "Did we really need that extra dinner out?" "Did I really need a new suit?"
  • Have a clear and realistic picture of income. What happens if that hot horse does not win? What happens if the "can't miss stock" does not produce a big dividend? If we work on commission or have a cyclical income, what is the minimum average that we can honestly expect?
  • Be vigilant about cyber thieves. With the increasing sophistication of would-be thieves and the amount of personal financial data accessible online, we have to take precautions. We all know never to release social security numbers or related data to any institution unless proper safeguards are in place.
  • Keep tabs on all accounts. We have gotten into the habit of accessing our online accounts multiple times each week to be certain that there are no glaring inconsistencies.
  • Have an exit strategy. Each one of us needs a plan B. If I lose my job or my benefits, how will I take care of myself and my family? It is far better to address these contingencies during the light and warmth of the day rather than in the darkness of the 11th hour.
  • Protect your ability to earn. The most powerful equity or value that we have is our ability to work. One of our colleagues is a surgeon whose work puts tremendous pressure on his back and joints. He has spasms and pain most days, which affects his productivity. He realizes now that if he had taken better care of himself — by exercising and watching his weight — his career might not be in jeopardy.

So, what is the bottom line? I think the messages are real clear.

  • We need to take care of our own financial health and not hand over the reigns to some expert. We need to be proactive; we need to be preemptive.
  • We also need to safeguard our physical and mental health. We need to protect and invest in our greatest assets — ourselves.

7 comments posted

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Feb. 13, 2009

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