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It’s easy to lose focus on wealth building and panic during a financial crisis . There are brighter times ahead so get your head out of the sand and your wealth system right away . Review and keep these 7 strategies in your back pocket so that you can stay on track to protect and build your assets back up :

1. Make a budget . To almost everyone, budget is a dirty word . So watch your cash flow . Track what goes out and what goes in . Get on a money diet. There are many free and low cost tools to help you track your finances like Mint, Wesabe, and Quicken . Find a budget worksheet you like and use it . You’ll be surprised, too, at how easy it is to pay bills online.

2. Get and stay out of debt . Easier said than done, right? Start with consolidating all of your cards to a low or no interest one and then start paying off that one. You will be paying down more of the principal than the interest which helps it go down faster. Meanwhile tear up the ones you own until you get the debt under control.

3. Make cash work for you. Get your cash out of the coffee can, or from under the mattress and invest it . That’s right, invest it. If you are nervous that we are headed for a depression, then invest in something that will guarantee your principal back like a bank account or certificate of deposit . If you don’t invest, those dollars under the mattress are a guaranteed loss. Inflation will guarantee that you buy less goods and services each year . And you don’t want that.

4. Pay off higher interest debt with low interest funds . Cash is king right now. If your savings is 3% and your mortgage is 8%, then it’s obvious to start using your savings to pay down the mortgage. Don’t do this until you have adequate cash in the bank for emergencies like fixing the roof, car repairs, etc. Have enough cash to support you for a minimum of 6 months in case you lose your job, just to be on the safe side .

5. Keep contributing to tax deferred plans . Don’t stop believing, and don’t stop saving for retirement. Believe me that one day you will want to stop working and when that day comes you are going to need the funds to support yourself . The fastest way to accumulate money is to contribute to tax-deferred funds in a pension, 401K, 403b, etc . Be brave and keep contributing the maximum. You will be glad you did years from now.

6. Have an investment strategy and stick to it Stick with your investment scheme . Many of you who did not have a strategy to look at in this crisis are the ones that panicked and sold everything and now wonder if they did the right thing. The federal government is spending like crazy and that means inflation is on the horizon. That means you need to be invested in equities to keep up with taxes and inflation. Buy and hold is my favorite all time strategy. It is easy, boring, and was thought up by Pulitzer Prize winners in economics and favored by some of the (still) wealthiest people in the world.

7. Don’t abandon diversification. Just because one sector is doing so well that you want to bet the whole farm on it is chasing performance . Stick with a diversified strategy . Cash for emergencies, equity investments, fixed income investments, and real estate should help you stay ahead of the game. Avoid the enticement to chase after high yield high risk investments to make up for losses in the past.

By following the 7 strategies above you can reconstruct your portfolio and protect it from taxes and inflation . Many scams will be floating around in tight times like this . If you focus on your personal financial strategy to build wealth, you will be set for brighter times ahead . -Fern Alix LaRocca CFP® Wealth Coach