1)  Debt can be deadly - Bear Stearns was leveraged 30 to 1.  When you're deep in debt, even the smallest misstep can lead to a crisis of confidence, and ultimately disaster.  There were rumors last week that Bear Stearns could be vulnerable, which lead to a run on the bank that ended up in a transaction where the company was bailed out at a small fraction of the previous day's market close.

2)  Allow yourself a reasonable margin for error - not only should you allow for things to go bad in your monthly budget but you need an emergency fund for those large expenses that arise from time to time that could potentially throw your finances out of line.  For example, are you prepared for unforeseen car expenses or medical bills?  When these items arise, and they will every once in a while, you don't want to run to your credit card to bail you out.  You will be much less frustrated by the experience if you can pay with cash.

3)  Diversify your investments - Bear Stearns was more than 30% owned by its employees.  As a result of the crisis, many of those employees will not have jobs, and their savings have been wiped out as well.  Since you are relying upon your employer for a regular income, you don't want to have a lot of money saved in your company stock as well. 

Even if you do not work for a given company, it is not wise to have too much of your investments in one company or sector, no matter how good of a company or sector that may be.

4)  Try to keep some cash around for opportunities to buy at low prices - This is especially true for your investment account but could also be applied to your checking/savings account.  You don't know when the opportunity of a lifetime will present itself.  If you don't have the available funds, you won't be able to take advantage. 

JP Morgan had some cash available to pounce upon an opportunity to buy Bear Stearns at a price of more than 95% off its highest price.  Plus, the Federal Reserve was there to help JP Morgan make the deal happen.  One week ago, no one would have thought that such a scenario was possible.  Because JP Morgan had the cash, they were able to make the deal.

5)  Don't find too much comfort or self-worth in the size of your income statement or balance sheet - we don't know what will happen tomorrow.  As it reads in James 4:13-15, "Now listen, you who say, 'Today or tomorrow we will go to this or that city, spend a year there, carry on business and make money.' Why, you do not even know what will happen tomorrow. What is your life? You are a mist that appears for a little while and then vanishes.  Instead, you ought to say, 'If it is the Lord's will, we will live and do this or that.' "

No matter how much of how little we have, something can happen tomorrow that will wipe us out financially.  Instead, we should put our trust in God.  Our attitude should be like that expressed by David in Psalm 20:7, "Some trust in chariots and some in horses, but we trust in the name of the LORD our God".