economy – 1800PrepareBlog

Things aren’t looking great for homeowners these days regarding home values. Since the housing peak in 2006, homeowners have lost about $5.9 trillion in value. The major impact on declining prices are foreclosures and the economic recession. Bloomberg reports:

“A phenomenal amount of wealth has been erased since the housing bust,” Stan Humphries, chief economist for Seattle-based Zillow, said yesterday in an interview. “For many households, most of their wealth is tied up in real estate.”

The net worth of U.S. households at the end of June fell 19 percent from two years earlier to $53.1 trillion, according to Federal Reserve data.

You can’t control the economic crisis happening around you, but you can take simple steps to make sure you and your family are prepared. It’s important that you start and finish the year 2010 and beyond with your financial house in order. A part of your plan should include emergency preparedness, so that you avoid spending higher, unexpected money to recover from natural or man-made disasters.

It’s time to get out debt, keep a stock of major supplies you’ll need to survive if there are widespread power outages in your area, or if you lose your job. Start with survival kits for your home and add to your supplies as you’re able to financially.

Source:
http://www.bloomberg.com/apps/news?pid=email_en&sid=af9OWXW1MJ6k

Natural and man-made disasters aren’t the only circumstances that should concern you as you prepare for emergencies. A lingering financial crisis should also be factored into your plans for preparedness. As the economy continues to sour, prices on needed medical, food and water supplies may go up dramatically. In an economic depression, these things may become scarce.

The Miami Herald reports that one financial indicator to keep an eye on, to let you know that things may really be getting bad, is the jobless rate in the United States:

One million workers could lose their benefits in January without the extension, according to a new report on the stimulus act unemployment benefits, written by several labor advocacy groups. “This is a lifeline,” said Jim Garner, the secretary of the Kansas Department of Labor.

Garner was one of eight state labor officials who appeared at a news conference alongside labor advocates. Though last week’s economic report showed hopeful signs, “We are facing a real catastrophe,” said Christine Owens, the executive director of the National Employment Law Project, one of the co-authors of the report.

At least you can see the possibility of this catastrophe coming, and therefore act now before things get worse. Emergency preparedness must be grounded in sound financial planning. Get the emergency kits and other items you need while prices are still affordable.

Source:

http://www.miamiherald.com/news/politics/AP/story/1370659.html