Pontificators feel that economic entanglements will spur people on to immediate corrective action. Many families are hurting as much emotionally as they are financially. And numbers are in lurches due to economic situations beyond their control.

RedBook magazine (May 2009) presented a perceptive article titled, "10 reasons the bad economy is good for you." Among the 10 reasons cited are these: the courage to change habits, greener living, having a sense of community, greater confidence, increased creativity.

The article referenced 82 percent of the people who have been laid off since the start of the recession are men. Women tend to work in sectors of the economy - health care and education - that are less vulnerable to economic fluctuations. These are real economic entanglements.

U.S. News & World Report devoted much of its May 2009 issue to jobs for the future. Two of the digestible articles are titled, "How to Find Your Way in Today's Job Market" and "Who's Hiring and Who's Not." Salient points are found throughout the two articles.

Veronica Dagher, a staff reporter for the Dow Jones Newswires in Jersey City, N.J., passes along four measures to cut spending during sour economic times: "Enroll the kids in a virtual school to avoid private school tuition and fees; barter; cut out the extras for a month, and stop supporting adult kids." These are measurable ways to filter economic entanglements.

Economic entanglements are as they are, but there are ways to maintain a balance between necessities vs. wants and desires. Here are seven suggestions as presented in The Wall Street Journal (April 27, 2009):

1. Reduce expensive debt, even before saving for retirement or investing in the stock market.

2. Get on a budget. Thrift is the new black. (Thrift is also the new chic.)

3. Guard against inflation. At some point, a portion of fixed-income investments should be in Treasury inflation-protected securities (TIPS). This demonstrates fiscal foresight.

4. Save for retirement. Remain very disciplined in this venue. Employer 401(k) programs are viable. Some are paired with corporate matches.

5. Have a stock-market strategy. Diversify assets among stocks, bonds, cash, retirement account(s), illiquids, etc.

6. Cash must be kept in other than the back yard, a mattress or a tin can. Keep cash in certificates of deposit, money markets, etc., earning some kind of interest.

7. Maintain common sense relative to investments. Be prudent; invest wisely.

Undoing economic entanglements will take time due to the complexity of the surrounding issues. But said British scientist Stephen King (1942-): "When expectations are reduced to zero, one really appreciates everything one does have."

Overcome economic entanglements through a persistent emphasis on the issues at hand. Deal with the meandering issues that make economic entanglements hard-pressed. Wrote U.S. President Abraham Lincoln (1809-1865): "Determine that the thing can and shall be done, and then we shall find the way." Undo economic entanglements.

Reach T&D Columnist Howard D. Hill, Ph.D., via educationconsultant@sc.rr.com

You must be logged in to comment.