I've been having quite a few conversations lately with people who are feeling stressed financially. Here in Los Angeles, many industries are feeling the effects of the writers' strike. And, of course, nationwide we seem to be facing a possible recession.

There are certainly no easy solutions. However, as we discuss in this month's article, panicking is definitely not the answer.

In early 2002, during the last economic downturn, I had just completed some financial education courses, had been saving for a while, and was ready to put my first real money into the stock market. I remember a friend asking "Why on earth would you be buying now? Everything is down." The thing was that the low prices allowed me to buy more shares in the companies I had chosen, than would have otherwise been possible. The money I invested ended up growing over 50% over the next 2 years as the market swung back up again.

The thing is - we don't necessarily know in advance what the economy is going to do, or how outside factors might affect us financially. The only thing we can do is make sure we are as prepared as possible for whatever happens. Make a commitment to your financial education, to developing your own financial plan, and to making sure that you have some "back- up" strategies for when the unexpected happens. By doing this, you'll be able to take advantage of opportunities that will pass others by, and ride through difficult times with the least amount of anxiety possible.

Until next time - to your prosperity!

Miata

Make a commitment to your financial education and register to join us this Monday, January 28th for a completely FREE teleseminar. Details below!

Panic! Run for your lives! In the last seven months, the housing market has collapsed, taking with it the stock market. Oil prices are rising steadily (with no end in sight), banks are showing record losses, the writers are striking (bad for those of us in the entertainment industry) and, basically, lots of people seem to be struggling. So now is not exactly the best time to be learning about your finances, right?

WRONG!! Here is a great quote by Warren Buffet (Multi- Billionaire, Philanthropist and strong candidate for greatest investor ever):

"Be fearful when others are greedy, and only be greedy when others are fearful".

What happens when there is a big economic slump is that people panic. Sometimes this is with good reason: when it is easy to borrow, people tend to get in over their heads with debt. The trick to riding this all out, however, is to keep your head, and not follow the herd.

Take stocks as an example. Let's say you bought a solid company when it was at $25. Things happen, we hit an economic downturn, and suddenly that same stock is worth $15. Oh no. We've lost almost half our money. Quick, sell before we lose any more -

Or not. If the company is strong, then it might not be its specific results that have caused the downturn, but rather, a more general tide of poor performance across the country. If this is the case, then all selling does is make REAL the money you have so far only lost on paper. Some experts advise holding stocks for at least a 3-5 year range. Following this advice will keep you from making any quick decisions that will lose you money. Everything goes in cycles. Remember the old maxim: "This too shall pass." And keep on keeping on.

The other thing, of course, is that a depressed economy can often be the perfect time to be investing. With the stock market, for example, there are numerous great companies whose prices are being crushed (and are therefore more affordable) due to overall economic woes. These companies are not going anywhere, and will, in all likelihood, bounce back to where they were (and more) once we have pulled through this current downturn.

Not that we should be running out there and jumping into things willy-nilly. Random buying will make you just as broke as panic selling. But now is the time to seriously look at your financial situation. As opposed to fleeing all things financial in the coming months, try swimming up stream a little. Learn how to handle your debt properly, so that it isn't hanging over you. Start a high interest wealth account so that you can have some money to start investing within the next year. Set up your finances so that you are maximizing your tax deductions.

Learn about how to handle money now, so that when things turn around (which they will) you are way ahead of the curve, not behind it.

FREE Abundance Bound Teleseminar: Understanding the Artists' Prosperity System

Monday, January 28th from 4:00 PM to 5:15 PM Pacific

If you're an artist who is tired of always struggling financially, join us for this FREE class where you will gain an understanding of the steps that will allow you to take control of your money. Learn about Abundance Bound and the ways we will support you on your journey towards financial stability.

This class is taught via tele-seminar so you can be anywhere in the country (and, in fact, the world). All you need is a phone!

The Artists' Prosperity Boot Camp

New Boot Camps Start February 4, 2008 - Reserve Your Spot Now!

This is a 10-week intensive program (taught by teleseminar), where participants learn AND implement each step of the Artists' Prosperity System. Students will get financially organized, improve their money mindset, create debt plans, start developing passive income, and much more!

The Artists' Prosperity Boot Camp ELITE

Limited to only 6 students!

New Boot Camp ELITE Starts February 4, 2008 - Reserve Your Spot Now!

For artists who want the accelerated growth that comes with extremely personalized attention, we've taken our popular 10-week Boot Camp program and added weekly private coaching sessions - during which participants receive one-on-one support in the achievement of personal financial goals. In addition to learning and implementing each step of the Artists' Prosperity System (TM), students will get extremely "hands on" guidance on all of their financial projects, such as business building, debt elimination, passive income generation and investment education.