Money Mistakes to Avoid

Ken: Hey Daria do I look like blue boy? I’ve got blue, blue, blue and my pants are blue. You know very often— Daria: We humor on here folks because it’s all we’ve got on this hours. Ken: Now, agree or disagree hold on. Sometimes the best way to cope with the crisis or a situation rather than doing something is to avoid doing something else or avoid thinking something else, agreed or not? Daria: What you're trying to say is sometimes doing nothing in a crisis is better than doing something stupid in a crisis. Ken: This is part one. The Dolans mistake to avoid on the financial crisis we find ourselves and don’t be fooled, we’re still in it. It’s going to be around for a while. Give me one— Daria: Number one because I’m seeing it over and over and over again when people call their broker saying, I’m really nervous I think I want to get out. Don’t worry. Stay the tied. We’ve bought this for the long whole and these people hang up and they say, well, he’s in the business, she’s in the business it’s more than I did. Ken: They know more sure. Daria: Prose doneness necessary— Ken: Tell about your friend— Daria: They’re all guessing at this particular juncture. They’ve never experienced this. Ken: Number two. Daria: I’ve got so excited, I forgot to swallow but I mean this is the first time that in a long time. Ken: We have a lot of this. Daria: Okay. Ken: I’m going to give you one. Buy and hold still works. Buy it, leave it alone, forget about it, put it in the closet, everything will be fine. Tell that to the people who—a few years ago just got bailed out from year—from start about years and years ago. You’ve got to be much more flexible. Daria: And what else’s to have—what also that it comes to pass in this particular economic crisis. The recertification has in held whether right ther. Ken: It’s really been tough-- Daria: Because when something went down, everything went down with it. So the whole idea of diversify so this way when this goes down something else will go up hasn’t been true either. Ken: How about the bale out will cure all this. Its fine the $750 Billion to a Trillion dollars—wait a minute. Are we giving it to some other same people that screwed up in the first place? So don’t think of that. We’ve got trouble—it’s going to be a while. Daria: The only else that might get cured quickly by this bale out is it will save a few members of the house that represented of C to the election year when they should all be thrown out. Ken: Borrowing with even—even with good credit is the easiest pride—it isn’t? Daria: No. Ken: It is not. It’s good to have a good credit score if you’re in that 750 or higher. It’s easier but we’ll be talking none of this particular video but in others and also on Dolans.com about interest going up and they bale out. So it just because you have good credit, don’t get cocky. Credit is tight for everybody. Daria: Another mistake to avoid in this financial crisis, beware of Presidential Candidates promising lower taxes. Ken: It’s not going to happen Daria. Daria: You can't go in the hook for over a Trillion dollars in debt and manufacture the money to pay it because let’s face it the government didn’t have this money when it started of for 700 Billion here and 200 Billion there. So they’re making this money which will be inflationary, we can talk about that in another time. But don’t assume that whoever gets into office is either going to give 95% of working people a tax card or maintain the lower rates of the current year. So if you're predicating on not making your tax move in this calendar year— Ken: Because it would be better next year. Daria: It will be better next year, you—do your tax planning on schedule this year and beware next year. Ken: Borrowing from your 401k is okay. It’s a good place to be at your money and that’s it, so go ahead and borrow. Daria: Go ahead and borrow and take all those loses number one because if you’d pointed it out of there you’ve absolutely as to tend that you down 20% 30% 40% in the value. Ken: It can turn to a real lost. Daria: And half of that, you’ve totally put the Kai- Bash to your retirement plans. Then go ahead and do it. Ken: No, is that you know from being facetious. Daria: I’m being facetious. Ken: The last but not the least, budgeting. I’d tried it, it doesn’t work—wait a minute now—I haven’t got enough money at the end of the month maybe now if I ever started a budget maybe if I ever want to do now when my money is going maybe now is the good time. Daria: Yes. And if you don’t want to save budget then call it a success plan. Call it a survival plan; call it a keep by nose above water plan whatever it is. Figure out where your money is going if your finding yourself with more monthly pay check because you can't afford to close your eyes, stick your head into the sand and figure “oh everything will be better next week so I’m not going to worry about it now” I’m not saying you should worry but I’m saying you should be proactive so you don’t have to make some sort of reactive move that you’ll regret. Ken: Daria, words from the heart, I appreciate that. Part one, mistakes to avoid during a financial crisis, part one there’s more, more? Get ready for part two, we’ll be right back.