Important Factors in Personal Investment Match potential investments with your goals in terms of several factors Safety and risk Minimizing the risk of loss (e.g., investing in blue-chip stocks) Maximizing potential returns by assuming some risk Investment income Predictable interest and dividends from stable investments (e.g., certificates of deposit, corporate and government bonds, and certain stocks) Investment growth An increase in the value of an investment, such as mutual funds and real estate that appreciate in value Investment liquidity The ease with which an investment can be converted into cash Copyright © Cengage Learning. All rights reserved

Surviving a Financial Crisis To survive a financial crisis, many experts recommend that you take action before the crisis to make sure your financial affairs are in order Seven steps you can take Establish a larger than usual emergency fund Know what you owe Reduce spending Pay off credit cards Apply for a line of credit at your bank, credit union, or financial institution Notify credit card companies and lenders if you are unable to make payments Monitor the value of your investment accounts Copyright © Cengage Learning. All rights reserved