Obviously, the economy in the US has been less than stellar in recent times. In July 2020, CNN reported that the US economy experienced its worst drop on record, and the situation is hardly an enviable paradise today. There are some real issues deeply imbedded across the country now, and some of these problems may persist for a longer while yet.
Still, life needs to go on and find a way somehow. Keep reading for tips on mitigating the financial impact of a turbulent economy.
All Weather Investing Opportunities
While a turbulent economy can seem greatly restrictive, there are still opportunities for investing and success.
For example, the Ray Dalio All Weather Portfolio is an investing portfolio designed to thrive in all economic conditions. Optimized Portfolio provide an in-depth breakdown of everything it entails, detailing how it was modeled after the risk-parity-based All Weather Fund. With their insight, you should be able to keep your finances lucid in tough times as a low risk tolerant type of investor.
The All Weather Portfolio uses different types of asset classes that perform best during varying degrees of inflation and economic growth. Assets include 30% U.S. stocks, 40% long-term treasuries, 15% intermediate-term treasuries, and a combined total of 15% for gold and various other tangible, diversified commodities. In the end, the All Weather Portfolio possess more dependable realistic returns and less crippling downside volatility more conventional portfolios.
The amount of money coming in and out of your home or business needs to be acutely assessed regularly.
A turbulent economy is largely unpredictable, analyzed in ever-changing broad strokes. Still, that is no excuse for stumbling completely blindly through your finances. Audit yourself and try and gain a foothold on at least some insight. The chaotic economy may be hard to ascertain, but your own personal situation should not be as tough to understand.
Access help wherever possible too if you need it. Last year, states like Connecticut offered help to small businesses to help them manage their cashflow problems, so it might be that such or similar services are available for use in your area. If government support is lacking, it might be financial advisors or charities could step in to assist. It is important to remember that you are not alone, and that support is out there if you need it.
Impressive Credit Scores
Having a high credit score greatly boosts your chances of receiving financial help.
Applications for loans, grants, mortgages, and credit cards only really get approved if you have a proven track record of financial stability. Everyone takes a bit of a hit in a turbulent economy, but if you cannot show that you were responsible with your money before the nation was engulfed, then why should lenders think things will change when times are tougher?
Because of this, the best thing you can do is practice good financial behavior. Pay bills on time, square away your debts rhythmically, and keep your oldest credit cards open. That way, you are painting the picture of a reliable spender, and receiving financial help from official bodies becomes more likely.