Saving Money

Ignore the Economic Boogeyman and Stick to Your Financial Guns

, Gawker Media

Ignore the Economic Boogeyman and Stick to Your Financial Guns

By most measures, our economy is on the upswing. But for most of us, there will certainly be more downturns between now and retirement. If you're saving and have a solid financial roadmap though, fears about the overall health of the economy shouldn't have little if any effect on your goals.

Our friend Trent at the Simple Dollar calls this fear the "Economy Bogeyman," but warns against paying too much attention to it.

Just like the bogeyman when we were children, the economic bogeyman of the moment isn't real.

A person who works hard, spends significantly less than he or she earns, and invests the rest in both a diversity of investments - stocks, cash, real estate - along with investments in their life - education, skills, a home, a strong social network, debt freedom - have everything they need to protect themselves from virtually any economic bogeyman.

The point is, if you're doing all of these things, and you still aren't protected from a downturn, then nobody else will be spared either. He likens it to worrying about an asteroid strike; there's a chance it could happen, but there's nothing you can really do about it. Every downturn will bring about fear mongers hoping to capitalize and lead you to bad investments and financial decisions, but staying the course is almost always the better choice. Check out the source link for some more insight.

The Economic Bogeyman | The Simple Dollar

Photo by isak55 (Shutterstock).

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