MEMPHIS, TN (WMC-TV) - Global financial problems and their solutions start at home, according to a Memphis financial planner.
Thursday, Joe DeLisi of Chartwell Financial Group said what happens after the opening bell dominates the headlines, but you should be more concerned about what you're not hearing on the news.
"People should not be paying attention to what the numbers are doing, but understanding that we're in a mess," DeLisi said.
According to DeLisi, the current market crisis doesn't mean you have to sell your stocks or your home, but investors should consider it a wake up call when companies that have been around 150 years run out of money.
If it can happen to them, he said, it can happen to you.
"You need to get on a budget," DeLisi said. "You need to stop spending like crazy people."
Just like any big company, you and your family need liquidity, which is cash in the bank, not an emergency credit card, Delisi said. As long as you don't use your home as leverage to accumulate more debt, you won't risk losing your home.
"The average Memphian is shouldn't be worried about that unless they're way over extended on what their house is worth," he said.
DeLisi said people shouldn't panic and cash their retirement accounts. Changing your spending habits now will help you ride out the current financial crisis and any others that follow.
"There's a problem in the market right now, and I think its okay to be nervous and aware of it, but ten years from now are we still going to be talking about this? No. It's going to be fine," he said.