Swine Flu and the World Economy

As if investors didn't have enough to worry about we now have concerns about another flu pandemic - swine flu. This is causing concern in global markets following deaths in Mexico and its spread to various parts of the world.

Global sharemarkets have been nervous by concerns about its economic impact. And the impact on economic and financial markets of the world would be significant. Coming at a time when the global economy is already weakened, pandemic fears have already caused nervousness in sharemarkets making more weakness possible. BUT, following the experience with SARS and bird flu the world is now better prepared for a viral pandemic. The advice from some economists is to be alert, but not alarmed.

Your Family Budget is Not Just for Rainy Days

A family budget is basically a list of your intended expenses and expected income. The aim is to ensure that your expenses or outgoings are lower than your income.

This quote from Charles Dickens’ David Copperfield says it all:
“Annual income twenty pounds, annual expenditure nineteen nineteen six - result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six - result misery.”

Unfortunately these basic fundamentals of family budgeting have been largely forgotten over recent times. In the last 15 years we have experienced a period of excess where most of us were spending 110% of our income. Now that the value of our homes has dropped we can no longer use our mortgage as an ATM. And reality has hit – result misery.

It’s time to get back to basics. Bring out the family budget forms, get the family together and work through a plan to reduce spending and find ways to increase income