Multiple times over the pandemic I wrote about how there was only so much that one could do personally while forces way beyond one person or one business are at work in the world. And now it feels like we may be on the verge of a similar situation as the banking system feels less secure even as other banks and governments try to steady things.
So there may not be anything new I am really saying here (I definitely will not be claiming expertise in global banking) but it did feel like a good time to drive home some of the points we held onto during the pandemic times.
For yes, there is only so much one can do in some of these situations. That is why one can easily feel for some of the people deeply involved in this situation. Like, can you imagine if your bank suddenly was failing and you have moments of not knowing if your money even existed anymore? And then after going through that, it is easy to understand why someone would run to the bank and gain the comfort of having actual cash. But of course, that is also the worst thing one can do when it comes to halting the issues on a grand scale.
So just what should one do?
The thing to do is stay on top of your own situation. If you are worried about uninsured funds, you personally have, then look into ways that could spread them into other places that would help you gain the comfort you lack.
This could be even more of a trying time for business owners. Of course it is awful enough to imagine your own money going away, but what if your business loses a significant amount of funds and then you can’t cover payroll? That would be just another moment of the snowball growing as it goes down the hill.
But even then, any bank failure would be at least difficult and most likely impossible to predict, so there is no surefire way to avoid this. But again, you can spread out funds if that helps your comfort level. You should also remain on top of your bookkeeping so that if these outside forces start shifting things in your business, you will be able to make changes to address them before it becomes too late.
And I am not saying that things will get to a point where it is too late. Chances are it will not and there are already indications that things have leveled off. But at the same time, if you have worries, putting your head in the sand is not the best way to handle it. Be vigilant to the degree that it helps you gain comfort and you will be in the best position to keep that snowball from growing.
Connect to Us ~ Facebook ~ Twitter
To ensure we don't make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.