US Economy Scrapes on By

I know I’ve been stuck on the economy of late, even more so by the latest announcement concerning our GDP:

“The Commerce Department reported Thursday that gross domestic product increased at a feeble 0.6 percent annual rate in the October-to-December quarter. The reading — unchanged from a previous estimate a month ago — provided stark evidence of just how much the economy has weakened. In the prior quarter, the economy clocked in at a sizzling 4.9 percent growth rate.”

Looks like we’re on a one way trip to recession town, but I’m curious as to when I’ll feel the pinch. Maybe it’s because most of my discretionary income after living expenses is either saved or used to pay off debt. Speaking of debt, my car will be paid off in August! Talk about an exciting feeling! But back to the matter at hand…

I dug around for some steps to take when heading into a recession. These steps should help shield you from the worst of the storm, and allow you to emerge ready and full of money on the other side! For the sake of diversity, I picked out a varie

•  My Personal Favorite from NPR.org: “Avoid Investing in Retail and Financial Sectors. These markets are taking a big hit right now, AuWerter says; though it is likely that there is money to be made here in the long term, it’s going to be a rough ride. She says that average investors who don’t have the stomach for volatility should avoid these sectors.”
• About.com says we should Spend Less: “Delay or eliminate unnecessary purchases. Then, add the savings to your emergency fund.”
• Kubler Financial president and founder John Kubler says we should “Turn off the TV or shut off your monitor.”We live in such an information age, where now you get a lot of immediate experts, so when stuff gets a little whacky — emotions come into play,” Kubler said. “That can be where you end up screwing up your financial future.”

What about you? What steps are you taking to make sure your nest egg stays intact? Are you moving into more conservative investment vehicles? Going International? Looking for a new job? Feel free to let me know.