There is no doubt that we are in uncertain financial times. House prices are falling and the general trend for the stock markets is a southern one. So what can you do? Here are some tips to help ease you through these shaky times

1. Don't panic

The worst thing you can do right now is panic and make rash decisions. If your finances are in reasonable shape, you will get through this crisis relatively unscathed. This is not the first financial crisis to hit the markets and it won't be the last. Markets are cyclical in nature and what we are experiencing is the opposite of a growth cycle. History has taught us that it will come around again!

2. Manage your debt

If you are carrying debts (other than your mortgage) try to bring them down. Avoid going into further debt. The more debt you have, the more it exposes you to risk. One of the contributing factors to our current crisis is that consumers have been madly buying and have been fuelling it with cheap credit. Now is the time to learn to live within your means. If you don't know how to do a proper budget, there are plenty of resources online to teach you.

3. Increase your cash holdings

Cash is king at the moment. Liquidity is the name of the game and those who have savings don't have to worry about short-term blips. You should aim to have three to six months salary in easy to access cash funds. ISA's are perfect as they allow you to shelter your money from tax, but still have it available to you when you need it.

If you have no savings, your first goal is to pay down your debts and then start saving. There is no point in having cash earning you 6.5% interest when you are paying 18.5% interest on your credit card debt. Pay the debt off first and then start saving.

4) Diversify

The key to any investment portfolio is to not put all your eggs into one basket. To minimize the risk of being hit by turbulent markets you want to aim to spread your money across a broad spectrum of assets: keep some in cash, some in shares (distributed across several industries), some in property, and possibly even bonds or gold if you are looking for security.

A well-managed investment fund will already be spread across a broad range of industries, so if you don't have a lot of money to invest in shares, a fund is your best place to start instead of individual stocks.

5) Try to stay in work

If you are currently employed, it is in your best interests to remain invaluable to your employer. At the same time, it is worth investing a little time in polishing up your CV, just in case. If you are out of work, you may need to double your efforts to find paid work. There are still jobs available, but you will need to increase your networking and perhaps work harder to convince an employer of your worth.

6) Opportunities

If you have all of the previous five bases covered, and you find yourself in the fortunate position of having surplus money, there are opportunities in this market. Property prices are falling and now might be a good time to buy either a first or second home. There are also currently a lot of undervalued stocks which a savvy investor can pick up for a fraction of their usual price. Remember that research is central to identifying the shares with potential.

Written by Knight Hooson