With the collapse of Lehman Brothers about a year ago, we came face to face with the financial meltdown, which led to severe unemployment and depletion of retirement savings. Though the economy and the stock market have recovered to some extent, there are certain timeless lessons which the financial meltdown has given us. Let’s take a look at it:

• Living within your means: Unfortunately, most of us had forgotten this golden rule. We had started spending more than what we earn while the rule is just the opposite - spend less than you earn. It’s very important to save for the future. It is our savings which can help us in dealing with any financial crisis. So, once you get the next paycheck, make sure you keep aside a certain sum of money as your savings. Keeping an emergency fund is also a good option.

• Financial regulators cannot always help you: It was believed that financial regulators like Securities and Exchange Commission (SEC) and Federal Deposit Insurance Corporation (FDIC) would create a safe place for Americans so that they can save and borrow the money in order to buy a home. However, with time, mortgage and appraisal fraud became widespread. Moreover, they were ignored during the financial boom. No rules were enacted until the damage was fully done. Though rules have been enacted and government has offered bail-out to the banks, the foreclosure rates have still not come down. Now, the White House has proposed a number of financial regulations in order to help the common people.

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