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Before you panic and start moving around your personal investments, take a deep breath. Sensationalized news reports and paranoid friends can lead you to believe the American dollar is on the brink of worldwide extinction. Not so. Even though many foreign currencies are gaining strength, many foreign banks use dollars to back their own money.

Proceed Through Your Investments With Caution

Although it’s popular to believe that American stocks, bonds and mutual funds are in a bad way, they are actually doing better than many international mutual funds. The fact that this is true is a pretty good sign that the American dollar is still pretty strong. Historically, currencies will rise and fall, but it takes a major financial disaster for a currency to disappear.

If you’re concerned about unstable stocks, then move your money to bonds. There are many government, and even municipal, bonds that are looking for investors. The payoff potential is not as good, but the stability is better. If you prefer to keep your money in a simple holding pattern until things improve, then a simple savings account or certificates of deposit are always a very safe bet. Your deposits in American banks are insured up to $250,000. Savings accounts are safe.

Keep Your Personal Finances in Check

If you expect your government and the companies you hold stock in to keep their finances in check, then do the same with your personal money. It takes the entire population to stabilize an economy, so practice a little austerity and cut your frivolous spending. Lower your personal expenses, and be cautious with your budgeting. Even in great financial times, the wealthiest people always practice financial responsibility.  That’s why they’re wealthy.