Earlier today, a transcript of a Fox News interview with President Barack Obama was released. In it, Obama describes some of the measures his administration is taking to help ease the recession and stimulate economic growth. However, the president also warns that there is a chance of a double-dip recession if government deficit spending isn’t brought under control. Federal debt is starting to get a little crazy right now, and Obama recognizes that economic recovery won’t come until underlying fundamentals improve.
This means that we may not be out of the woods just yet. And, in terms of personal finance, it is a reminder that now is not time to grow complacent, even though there have been some encouraging signs pointing to the beginnings of an economic recovery, now is not the time to abandon new habits developed through economic expediency. Indeed, it is time to reaffirm your commitment to the financial basics:
- Spend less than you earn.
- Distinguish between needs and wants, and focus on the needs first while cutting back on wants.
- Put more towards retirement savings.
- Build an emergency fund.
- Pay down debt.
It you are starting to see an upturn in your financial fortunes, it is a good time to do what you can in terms of shoring up your financial situation. Because if a double-dip recession does become a reality, you want to be ready for it.