Photo Credits: gee

This is not a blog about personal finance, but given the events of the last few days I feel compelled to chime in and say a few words especially to our youngest readers, since they are the best positioned to ride out these complicated times and come out ahead.

I really believe that what happened in the stock market these last few days has been a gross overreaction. I was just checking some large, world class companies with dividend-paying stocks (like BP, ATT, Kraft, etc.) and some of them are now selling so cheap that their dividends are yielding 6%, 7%, 8% or more per year.

If I were a 25 year old with $10,000 to invest I would pick three or four of these great companies, buy some shares and earn a hefty ROI (while waiting for the share price appreciation that will almost inevitably occur as we snap out of this recession).

Difficult times like these are when you find the best business opportunities, but taking advantage of them will require that you have cash available to move in quickly when opportunity knocks. This is the time to get your financial house in order. Develop a budget, stick to it, and get in the habit of saving and investing your money wisely. Buy only things that appreciate in value or that give you a return on investment.

Times like these, when everybody’s running for cover, are also a very good time to start a business: it is easier to get help, there are better deals for marketing and advertising, and less competition. I’ve been around enough to know that the individuals and companies that stick around during tough times are the ones who reap the best rewards when things come back to normal.

There is no bigger risk than postponing or trading what you really want to do for a “safe” alternative like a job (unless that job is what you really want, not have, to do). Job security is an oxymoron in today’s business environment (just look at those 60 year olds that thought they were playing it safe, now standing in shock as their retirement plans evaporate). So don’t be afraid. If you have a calling in life and feel there is something you were really meant to do, don’t delay and start today.

Good luck and let me know how are you doing.

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