Two months ago, I attended the local Memorial Day celebration, and again recently on July 4th pledged unending gratitude to our forefathers and servicemen for our country’s independence and freedoms. The positive, allegiant energies apparent during both those days transcended this past year’s dark blanket of fear and crisis.

We are reminded that fearful times and struggles, followed by faith, perseverance and brotherhood is the dynamic which has historically lifted us to new heights. Last issue I quoted, “… this has been like a massive forest fire—nearly everyone got burned. And like a forest fire, it could ultimately be a cleansing experience that rejuvenates and strengthens…” (Financial Advisor Magazine, February 2009) You may reflect and say “…just a few years (months) ago we had it all.” But if you had experienced no lean times in comparison, you could not know this.

The economy appears to be rejuvenating and strengthening. How does that apply personally? Look around you and see what remains as the forest fire diminishes to a smolder. Most likely what remains is most important; your family, job, health, rebounding investments and a renewing spirit for life. Begin rebuilding, looking forward and planning for the future.

Creating a solid foundation will include a bold look at your cash flow. Spend less than you earn. Ah, you say, you have heard that a thousand times before? Maybe so, but you now need to practice this mantra. Too much leverage was the kindling for this past forest fire. Be honest with yourself; where are you spending, and is it in line with your spend less than you earn intention?

Many have been asking me about looming inflation. That is certainly a possibility. Evaluate your investment portfolio and include inflation-hedging investments to help smooth that road if it comes. You may not want to leave all your investment dollars hiding in cash. Most personal investment policy statements (IPS) project an approximate 7 percent investment return for long-term goals to be successful. The 1 to 3 percent fixed income rates just won’t do. On the other hand, if your IPS projects 9 percent or higher, then you probably want to reevaluate the reality of internal return averages.

Dollar cost averaging, systematic investing, is a widely recognized investment strategy that can help compensate for a constantly fluctuating market. Implementing dollar cost averaging may ease you into “auto pilot” that has you “pay yourself first” easily within your cash flow plan. However, dollar cost averaging does not guarantee profitability or protection against a loss.

The blanket of fear is lifting, freeing us to strengthen and rejuvenate. Spend less than you earn, build back your emergency reserves for the next time (oh sure, there seems to always be a next time, will you be better prepared?) and let’s move to resume planning for your future dreams and goals. C’mon you can be creative and resourceful.

This is Part 2 of a 3 part series. Next time I will look into opportunities for building wealth and funding goals. If you have a particular topic you would like for me to address in Part 3 or a separate article, please write or call, I would love to know and accommodate wherever I can!

Erin Carper, CFPâ is the owner of Carper Wealth Management. Call 678-566-3682 or e-mail erin@carperwealthmanagement.com, www.carperwealthmanagement.com Erin is an Ameritas Investment Corp. (AIC) Investment Advisor Representative. Securities and financial planning offered through AIC, Member FINRA/SIPC. AIC and Carper Wealth Management are not affiliated. The above information is intended to provide general information. It is not intended as, nor may be considered, as tax or other legal advice for you. Please consult the appropriate professional advisor for your specific circumstances.