The Asian markets took a hammering on Tuesday. Japan stocks were down 5.7% while Hong Kong posted 5.3% losses. With no resolution to the Lehman problem I'd say we'll have another down day on Wall Street.
So what can we do as out of the loop main street folks. Check out your banks' financial health. Do they have a lot of assets in mortgages? Have they set aside money to cover losses from mortgages?
Something I recomended in posts last year was to set aside 10% of your take home pay. Pay yourself first then the bills. When I first started doing this I was making just enough to get by but I found that as time went on it became easier and easier. Once you get a few thousand saved you can use that money as collateral for a car or personnal loan and pay much less than the going rate.
Always pay more than the minimun payments on credit cards. If you have more than one card try and pay off the one with the highest rate first. When the first one is paid off use that payment along with your regular payment to pay off the second. These are just some of the basics. The problem at the present is that there may not be too much time to prepare for long term bad times but for those interested here's a link to my post on surviving hard times.
Plans for surviving hard times
As I mentioned before the biggest problem at present is the funding of FDIC. If something doesn't change with that then you will see runs on banks and the Depression of the 30s will look like a picknic.