How to Invest Your Money in 2009 and Beyond

Cash is king. You should have a cash reserve at all times, both as a "just in case" fund and also as a base of capital should an amazing investment opportunity present itself unexpectedly.

In addition, you want to have a certain percentage of your wealth in stocks. Assuming civilization doesn't crumble, it looks like a lot of great, profitable publicly traded companies are going at greatly discounted prices right now. An opportunity like this may not come along again for several decades.

What companies should you invest in? Invest in what you know. What basic consumer goods do you think will do well in a tight economy? What services are people going to need, even if they are out of work or low in cash? Invest heavily in these companies, but don't invest more than you can afford to. And don't take loans or lines of credit to invest (too risky).

Also, do you have a great business idea you have been sitting on for years? Maybe this is the year to make it happen. Set aside a few hundred (or a few thousand) dollars for the creation of your business web site, incorporate if necessary, and begin to make your dream a reality. Sometimes the best investment is the creation of your own business, especially if you've been laid off or reduced to part-time only.

Adversity is often the greatest opportunity. Don't forget this. It's only money, but you want to grow it, to turn your dreams into reality. A tight economy actually creates many opportunities -- lazy competitors will go out of business, and only the toughest and most dedicated companies will remain. Stay dedicated, keep your costs low, and offer great value to your customers. They will spread the word if you do right by them.

Good luck, and be well.