staying safe in the storm
Oh yeah. This is a recession. It’s getting ugly out there, folks. Governments are feeling crunches. I read one article that said a few states only have enough in their unemployment funds to last for a finite amount of time. This is what I’m telling myself in order to be proactive about any hard times to come:
Keep Investing
And the stock market averages are constantly in the red. I already know what I want to do with my next paycheck - buy more mutual fund shares for my IRA! The price per share is as low now as it’s ever been, so I can get more for my money.
Keep Saving
I also want to shovel as much as I can into the My Own Home fund. You don’t know this yet, but I’ve been in touch with a realtor, and Mister Ant and I have gone to look at a house. I know, I know - I’ve been grousing about how I shouldn’t buy with my unstable income. But I couldn’t resist. The picture pulled me in. And don’t worry, we didn’t put in an offer. I just wanted to experience viewing a home as a prospective buyer. It was fun! When the time comes, we are going to be so ready. In any case, the more money there is in the My Own Home fund, the better, both as a backup emergency fund and as a nest egg should the need not arise to use it in place of lost income.
Keep Controlling the Spending
I’m being extra conscientious about energy use, since our gas bill goes up in the winter, and the nights are cold again now. I’ve read suggestions to have the heat on during the day and turn it way down at night. I find that stupid and I do it the other way around. We turn the heat way down and let the sunlight in when we leave for work, and then turn the heat back up to about 68-70 when we get home. We both like it hot, so that’s a real sacrifice. We keep plenty of blankets around. I’m also buying lunch, and ordering delivery and take-out much less often. It’s a two-for-one deal to cook at home, because you save money on food, and you warm up the place while you’re cooking. I’d gotten lax when I started making more money, but I’m using more discipline lately. I want a new waist-length peacoat, but I’m not in a rush to get one - the 3/4 length wool coat I have is good enough for now. By saving in these ways, I don’t feel so guilty about the things I do spend money for, like the new Toni Morrison book I ordered online the other day.
Keep out of Debt. Period.
I don’t have credit card balances, and I aim to keep it that way. I don’t put anything on my cards that I can’t pay off in one billing period. If I don’t have the money, I can’t buy it - cash or credit. Not having balances means less monthly bills. I can definitely get with that.
That’s about it. Keep investing. Keep saving. Keep controlling the spending. And, keep out of debt. Period.
ditto, ditto, ditto!!!
Comment by Ms. MoneyChat — November 14, 2008 @ 7:12 pm
What’s the current market like for young attorneys?
While I understand your house fever, it should not be an automatic “next step,” and, though I wish you and your man the best, you should make sure that you can afford any house you buy entirely on your own income. As my daughters are fond of telling me (usually when they’ve done something majorly stupid), Sh*t Happens.
Am I sounding like your mother?
I was waiting for someone to notice that paragraph! It’s like noone is worried about me having been in touch with a realtor. Thanks, Grace. You’re not sounding like my mother. You’re sounding like my dad!
Like I told him, we have looked honestly at what we can afford, not just based on our down payment, but also based on our income. Either one of us would be able to afford the household expenses on our own income alone. Because I know that Sht happens!
Comment by Grace — November 16, 2008 @ 6:03 pm