Well, Aunties, times are tough financially. And I have to admit, the barrage of news regarding the economy is really getting to me.  I cannot get away from it and it is seeping into other areas.

A friend recently shared that she could not go out for dinner because of the economy.  While i agree that she didn't have to go to a trendy place, I think she still needs to live her life.  Why didn't she consider a more frugal night out, like "Chinese," or another less expensive option?

We should not put our lives on hold and become paralyzed because of the economy. However, what can we do so that we're being careful at the same time? I recently read an Op-Ed in the New York Times written by Warren Buffet. I read it once and walked away with actions steps I can do right away.  Here are my takeaway points:

1. Buy American stocks.  Chances are the market will move higher well before the economy turns up.  So if you are buying stocks now, you are buying at the low.  After the Depression, the market advanced 30% even though economic conditions were terrible.  Same in the early 1980’s: inflation raged and the economy was in the dumps but stocks increased.  I will add, that you should stick to mutual funds and invest for the long term.

2. “Equities will almost certainly outperform cash over the next decade.”  I would add that if you are holding a good amount of cash, have enough in your emergency savings account and do not need it for the long run, consider investing a portion.  Perhaps this is the time to put it in your IRA or your niece or nephew’s college savings account.

3. Follow Buffet’s simple rule: “Be fearful when others are greedy and be greedy when others are fearful.”  When you are wondering what to do, stop for a minute and read this quote.  Keep doing it until you feel calmer.

Remember, Aunties, give yourself a break and be optimistic about the future. And if all else fails, order in.