This is a guest post from my friend Nick who is a financial consultant in UK.
I take this oppurtunity to quickly present some ground rules for these turbulent times in financial markets. Make your own judgement w.r.to risk-reward profile of yours.
- Do not commit to any long term debt, most particularly buying a house
- Do not bottom fish in assets for a long time
- Reduce family fixed cost base: rent house on a short contract, downsize expenses
- Delay purchase of any big ticket goods in anticipation of sales Q3 2008
- If a contractor, try to go permanent
- If a City worker, avoid front office volume-driven jobs
- If you have a relatively secure position at work, do not be lured away for more money, especially if it’s heavily weighted towards a bonus
- Liquidate all assets. Hold cash across many banks below insured limit, and preferrably in different currencies
- Save now on the assumption you will lose your income at any moment
