Tuesday, September 16, 2008
The Dow Jones Industrial Average plummeted 504.48 points yesterday. This was the largest single-day drop since the terrorist attacks on September 11, 2001, as Wall Street firm Lehman Brothers, the nation's fourth largest investment bank, filed for bankruptcy amid worries about the health of other key financial institutions. I received an email from my bank with some valuable advice that I wanted to share:
"While we don’t have an crystal ball, we do expect the economy to remain fragile through 2009. The best course of action for our Customers is to be disciplined: avoid splurging; identify and cut out unnecessary expenses and save for what's essential; and hedge against those tough times. We can all benefit by developing good spending habits: confront and cut up credit cards; use your home as a savings vehicle - not as an ATM; and establish and contribute regularly to an IRA or 401(k)."