Looming “Fiscal Cliff” Deadline & You

Looming “Fiscal Cliff” Deadline & You

I hope you had a lovely Christmas holiday yesterday. Or, simply enjoyed a day of rest and relaxation if you don’t celebrate. Mine was fantastic, and not too long ago, I enjoyed a late lunch of yummy left-overs. But earlier this afternoon, I had the pleasure of appearing on HLN to share some tips on what to do if our elected leaders don’t reach agreement and we, in fact, go over the “fiscal cliff. In case you missed the segment, I thought I’d share my suggestions here, as well: What to do & what to expect if the “fiscal cliff” happens Tip #1 – Don’t panic You tend not to think too clearly when you panic. Thereby increasing your chances of making reactionary choices, instead of smart, strategic ones. So don’t do anything rash. Before solidifying any action ask: “Am I doing this purely because of the fiscal cliff?” If so, think twice. Tip #2 – Prepare for less cash If we do go over the “cliff,” you are going to have less take-home pay. Maybe not immediately, but certainly before the end of January. If you haven’t been paying attention to what you do with your money — how much you spend and on what — now would be a good time to begin paying attention. It’s likely that you’ll need to make some adjustments and what you pay attention to will give you insight on what changes will become necessary. Tip # 3 – Do scenario planning Because of tip #2, now is a good time to run some numbers according to worst-case, likely, and best-case scenarios....