This is an interesting time to be alive.  You see who the savvy financial people are in a time of crisis.  Another thing I love is watching middle managers and supervisors in a time of crisis in a business.  You learn more about them at that time than you could in any other way or at any other time.  How we handle difficulty speaks volumes about how we see the world.  The pessimists see the sky falling and their demeanor reflects the despair they feel inside.  The optimists go around in denial.  Everything’s great.  Everything’s going to be fine.  No need to worry.  The realists are making plans that change day to day, hour to hour, minute to minute.  They are the survivors and the only ones who will be standing tall when the crisis has passed.

A crisis is no place for that person who makes a plan and sticks to that plan come hell or high water.  In a crisis the situation is always fluid and twists and turns as new information becomes available almost constantly changing shape.  The only thing you can count on is that nothing will be the same in a few hours as it is right now.  This is the playground of those who can process information at the speed of light and make good judgements based on that information.

It’s interesting to watch the stock market as it bounces up and down like some kind of unruly puppy.  It’s even more interesting to watch how people deal with what’s happening there.  There are those who caught like a deer in the headlights, afraid to make any move for fear of jumping right in front of the oncoming bus.  Then there are those who make a knee-jerk reaction and sell everything while the stock is falling — in many cases committing financial suicide by throwing themselves ritually upon the sword of buy-high, sell-low.  Then there are the experienced investors who move confidently (but cautiously) through the maze of opportunities that exist in such a situation.

One thing is certain:  this is not a time to panic.  It’s not a time to be frozen into inactivity.  It’s certainly not the time to act recklessly, driven by unbridled emotion.  No.  This is a time for deep personal reflection.  You should be asking yourself what your plan for the future is.  You should be asking yourself how the current circumstances affect your ability to reach your goals (both for your business and your personal goals.)  

I read an article this morning on a potential deflationary situation facing our country.  You need to read this one.  After you do, you should be asking yourself how you’re going to get out of debt.  You should be asking how you can free up your cash to take advantage of the opportunities that will begin to present themselves in the coming months.

It’s clear that those who are prepared financially will reap bounties in the coming months that they never could have imagined possible.  It’s also clear that those who are not prepared financially — those who have been living on the borrowed dollar — will reap the whirlwind.  It’s not too late.  Get your debts paid, make sure your discretionary cash is liquid enough to be available and not invested some place where it might be gone tomorrow, and be ready to jump on what’s coming.