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We live in very uncertain times. The present global recession began as a trickle. But now it has assumed the awesome momentum of a tidal wave. We are faced with record unemployment figures and the collapse of once viable businesses. Now, more than ever, we need to have a financial safety net.

But hoping and wishing for a financial safety net is a far cry from actually having that financial safety net. In specific terms, what exactly can we do to ensure that we have a financial safety net?

First, we have to understand clearly what a financial safety really is. In very simple terms, we can describe a financial safety net as a fall back position case we are hit with unexpected financial problems. A financial safety net ensures that even if we are down, we can still rise and begin to build up our finances again.

Having said that, we need to understand exactly what form the said financial safety net should take.

Now, in view of the problems facing both the stock market and the building industry, some people might be tempted to change their opinions about the wisdom of investing in stocks and landed property. Well, this writer is not in that category.

In a recession or a boom, the best things to invest in remain unchanged and they include the ones discussed below.

Land

1. This is one of the things into which you can put your money and sleep well at night. Land has a very limited supply so, it is one investment that will only appreciate with time.

2. Real Estate

Like land, real estate is way up there as a sound investment move. If you have cash to spare, put your money in a block of flats, a farm, a cattle ranch or a private parking lot. This will serve as a great financial safety net when your fortunes are no longer as good as they used to be.

3. Stocks

Forget the Maddof fraud. Warren Buffet is still investing in the stock market and so should you. It is wise to have stock investments for two basic reasons. Under normal circumstances, most viable stocks grow above the inflation rate. Again, you also benefit from capital appreciation, bonus shares and dividend payment. Therefore, buying stocks is a great financial safety net. It makes more sense than keeping your money idle in a savings bank account.

4. Invest in Commodities

Sometimes, it is hard to plan for the unexpected. However, the prudent individual should anticipate a drought and save some water. To this end, it makes sense to buy gold, diamonds and other precious stones. The beauty of this strategy is that it offers you a way out when currency value falls and there may even be loss of confidence in the banking industry.

Finally, invest in yourself as well. Find a way to get relevant training and qualifications that will make a marketable and valuable individual. That way, you will remain a financial safety net as a person even when other things you placed your hopes on have failed.

Learn more about this author, Emmanuel Osondu.
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