Tips for investing in challenging economic times
An economic downturn usually makes people more aware of the importance of saving and spending their money wisely. Here are a few tips you can adopt to help you manage your money wisely during such periods.
Pay off your debt
The repayment of debt is the best investment you can ever make. A downturn in the economy means fewer job opportunities, wage cuts, and rising unemployment. In order to protect yourself, it is wise to repair your personal balance sheet. Reduce your spending and use the money you save to reduce personal debt first (credit cards, overdrafts, loans), then your mortgage. Build a cash cushion to help meet unexpected bills or to cover expenditure if your income falls.