Newsflash! (((cheezy newsreel sounds)))

Google misses 4th quarter earnings estimates! Your inner monologue somehow manages to hold in the collective "You have got to be BLEEPing kidding me!" response that you were microseconds away from yelling at the top of your lungs.

UUGGGGGHHHHHHHHHHHHHHHHHHHH!

A quick check of the after hours market reveals that you're favorite stock pick of all time has just fallen from grace. That darling 4 symbol palindrome (GOOG) that's made you tons of money in the last 3 years has given you a reminder that gravity still exists. Worse yet, it continues its downward spiral to the point that your stomach feels exactly like the time you went skydiving on a dare.

After the first few moments of shock and self loathing subside, you suddenly realize that most of your savings were used to buy more GOOG shares because it was a "sure thing." You now have the very real possibility of having zero or little cash in your bank account to pay the bills.

Now you are reminded of the house down the street on the corner block with the foreclosure sign in the front lawn. Just what the heck are you supposed to do?

Back to Reality!

My apologies if you got caught up in my scenario, but rest assured there are many people who have fallen victim to a similar chain of events, and gotten themselves into serious financial trouble due to their poor investment management skills.

The sad fact is that Google really did disappoint Wall Street today (January 31, 2008), and was severely punished by falling around 50 points in the after hours market. Therefore, if you think my panic stricken diatribe was fictitious, think again!

How to fix the short term fallout?

If you really managed to lose a substantial amount of cash reserved for your personal living expenses, you still have a few opportunties available to you. Granted, some might include groveling, but at this point, you really have no choice.

First things first! If you can't come up with the cash on your own, ask a close friend or family member for help. While the money is important, listen to their advice even more to avoid this from happening again.

Second thing would be to call your mortgage company. Foreclosure is a nasty word heard in every news report for the last year it seems like, so it's highly probable that your lender and the federal government will offer some form of assistance, as well as delyaing your upcoming mortgage payment. Just like you, mortgage lenders lose money during a foreclosure, so its in their best interest to keep you in your home.

Lastly, and most importantly, go visit the biggest friend you have and have him/her beat some sense into you! Don't whine, don't whimper, and most importantly, the next day when you wake up with a big fat lip, remember how you got yourself in this position.

Investing is a serious, life altering process and if done incorrectly, you will wind up in a world of hurt sooner rather than later.

How to Correct the Problem?

Never invest money that you require to maintain your normal way of life in any type of high risk venture. Period!

If you have little cash on hand, start by saving as much as you can each and every day, and put these funds in a safe investment vehicle. Once you develop a functioning strategy to consistently save money each month, set a goal to build an emergency fund for some added security. This will allow you to steadily build up your savings over time.

My advice would also be to use this time to learn how to trade the stock market more effectively and minimize your trading risk. Treating the stock market like a roullette wheel will only do two things: drive you nuts and make you broke!