Press Release
February 17, 2008
The current economic downturn has many families worried about losing their job, struggling to keep up with bills and worried about the future. The outlook seems bleak – 11.6 million Americans are unemployed1, third quarter 2008 foreclosures jumped 71% over the same time period the previous year2 and the personal savings rate remains in negative territory.3
Primerica, an industry leader, presents four tips to help families’ finances weather a recession.
1. Stay focused on goals. Historically, clients who invest consistently, whether the market is bullish or bearish, reach their long‑term goals. The best way to ride out the ups and downs of the stock market is to maximize the power of dollar‑cost averaging – investing a certain fixed amount consistently regardless of market fluctuations. While dollar‑cost averaging does not ensure a profit or protect against loss, history shows that investors make up 80% of bear market losses within the first year of the recovery.4 Investors should consider their ability to invest in a declining market.5
2. Slash and burn bills wherever possible. An easy place to start: auto and homeowner’s insurance. “Some insurers give long‑time customers up to a 10% discount, but that can pale in comparison with the savings from switching insurers. At least once every two years, get a quote from another insurer.”6
3. Keep good credit. To keep that all‑important credit score attractive, clients should pay their bills on time, limit the number of credit cards they have and avoid financing more than one big‑ticket item at once.
4. Boost income. Start a part‑time business or work a few hours a week at a second job to get through a crunch. Business opportunities, such as Primerica’s part‑ or full‑time opportunity, are great ways to do something enjoyable while earning extra money each month.7 More information is available at Primerica Business Opportunity.
Times are tough, but following these simple tips can go a long way to helping families come out on the other side of the recession with their long‑term financial goals still intact.
- Kansas City Star, www.kansascity.com, February 6, 2009
- www.CNNMoney.com, October 23, 2008
- Newsweek, www.newsweek.com, February 1, 2008
- Money, November 2008
- Investments offered by: PFS Investments, Inc., 3120 Breckinridge Blvd., Duluth, GA 30099‑0001, 770‑381‑1000
- Money, November 2008
- In Canada, the part‑time option is not available in all jurisdictions and, where it is available, is subject to certain restrictions.