1. 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
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2. 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
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