THE big blockbuster movie 2012 told the story of how the world, according to scientists, would be coming to an end in that year. While no one knows the day or time, our focus right now — as it relates to our finances — should be on putting things in order for 2010. The bitter taste of the financial and economic woes still lingers with many individuals who are now forced to find the best strategy to become and remain financially fit in 2010.

The steps to remaining financially viable in 2010 are quite simple but will take effort and determination. The first area of focus should be ways to look for savings. With Santa Claus already decked out and decorations up, I think now would be the ideal time to put that principle into practice. Tips such as trying to make gifts instead of buying them, collaborating with family members to buy gifts, giving baked goods for gifts, should be considered. Also look for lasting ways to cut cost in other areas of your life for example home maintenance, grocery shopping, child care etc. Conduct family meetings to brainstorm on new ways to cut expenses and how to bring in more money; you will be surprised how many creative ideas may be born.

Another point to bear in mind is to continue saving for retirement during the tough times. This will by no means be an easy task but what we do with our investments now and in the immediate future will dictate more than anything else how much we have at retirement.

Individuals may be forced to rethink their emergency fund, providing that you had one to begin with. Realistically, each person should have in savings up to six months’ salary should the unexpected occur, such as a loss of job, illness etc. Given the current situation, it may be more difficult to have that much saved up, so now the question to ask is how much is reasonable? And the answer to this question is dependent on a number of factors. For example, are you married? Do both of you work? Do you have assets that you can sell if you had to? Having considered these factors you may realise that your best bet would be three or four month’s savings. The point of the exercise is to set a practical target which you can achieve without sleepless nights.

It almost goes without saying that when faced with a credit crunch individuals ought to protect their income. Simply put, keeping your job should be your number one priority. Sounds silly right? Who would try to lose their job? However, try to remain employed by going the extra mile, by working a little harder and improving your skill set. Although its best to remain employed, we should also plan for the unthinkable event of job loss. This means having your résumé updated, a lot of good advice is available online on how to present a good and efficient résumé. It has become much harder to find and switch jobs due to the high unemployment rates and the greater number of candidates on the prowl. Stay in contact with friends and colleagues who can refer you to new positions as this becomes a huge asset during a weak job market.

The benefits of earning a second income can also help in surviving 2010. The beauty of the extra income is that it can go directly towards the emergency fund. When assessing how to generate multiple income streams consider something that’s flexible, sustainable, enjoyable, and scalable.

These tips are not rocket science but require diligence and perseverance. The future is certainly unknown but as best as possible we should plan for.

Dian Blackwood is a personal financial planner with Sterling Asset Management Ltd. Sterling provides medium to long-term financial advice and instruments in US and other world market currencies to the corporate, individual and institutional investor.

Feedback: If you wish to have Sterling address your investment questions in upcoming articles, e-mail us at: info@sterlingasset.net.jm

You can now follow our investment updates on Facebook.com and Twitter.com!