Five Personal Finance Moves to Make Today

Don't rely on credit cards. For those who have been paying off debt and even those who pay off their credit cards in full each month, it has become more common to rely on credit cards as a sort of emergency fund. The strategy is simple. If there is an emergency, it can be placed on the credit card until the money can be taken out of other investments to pay it off. In this way, the money can be placed in investment instruments that produce a higher yield than a savings account.

The problem with this strategy, however, is that with the worsening banking crisis, banks are tightening credit and will likely continue to do so. Many people, even with good credit, will find that their credit card limits will be reduced and it's even possible that some accounts will be closed altogether. The ease with which credit cards have been obtained in the past will likely dry up, meaning that the credit card funds that you may assume are available might not be there in an emergency. If you have been placing your emergency fund in non-liquid investments to try to earn a better yield, you might want to consider placing them in more liquid assets for the time being.

Increase your emergency fund. It's also a good time to look at your emergency fund and decide if it needs to be expanded. Most people should feel a bit more concerned about their employment with the current economic conditions. With this in mind, it's in most people's best interest to have a little extra tucked away just in case. If you don't have a personal emergency fund, it's time to begin one right away.

Update your career basics. The poor economy is going to take its toll on companies, and most people know that there is no longer a guarantee of a secure job. Now is a great time to work on all the little things that can improve your career.

Take the time to make sure your resume is up to date and look into job related training that will make you a more valuable asset to the company. Doing the little things that make you an important asset to your company will increase your chances of keeping you job if there are layoffs and in finding a new job if you happen to lose your job.