It’s eerie when I read articles from back in the day on this blog. About a year ago, I subscribed to the Economist magazine (something I wish I had the time to still read, today) and shared this nugget of information with our readers before the recession was declared and before our economy tanked:
It was recently calculated that every American, including every child, carries $30,000 in debt. The current deficit is calculated at a $1 million a minute. The government is working on legislation that will write-off the suffocating interest currently accruing that crippled the subprime mortgage market. a recession is extremely plausible.Ybp, I say to you, with urgency…save. Have multiple bank accounts, readjust your spending habits, apply the 20% (not the 10%) rule, and build wealth. It is not an overnight process. Every little bit counts.
spooky, right?
Well, as the new year approaches and we try to survive this economic time, I keep to those words. Hopefully you’ve made some strides in having an emergency fund and keeping yourself afloat. If you’re blessed enough to be employed, continue to sock it away. Try and find assets that will have fixed returns, like a long-term CD or IRA, and let that be the basis for wealth. While the market is a no doubt bargain bin at the present moment, never get too greedy that you over-extend yourself in purchases where one broken piece brings your entire vision down.
I’ll relink to some past articles we had on the subject and ask that our readers post up some of their own financial advice that they’ve found useful over the years.
DNLee
This recession also makes me think about ways to save money. I keep thinking of ways get the necessities in life without spending money, or much less of it. I think we all should consider 'simplifying' our lives to one that resembles our parents or perhaps grandparents.
As a young child, I remember going out to eat was a treat, it happened, maybe once a month or two. Now, I am spoiled and lazy. I've become accustomed to fast food or quick heat and eat meals. It's more time consuming but money saving to cook from scratch or semi-homemade. I'm learning and applying hard lessons, mostly in the kitchen.
December 10, 2008 at 1:17 pm
talentdiva
I agree that simplifying our lives is a start. But we have to get into a saving mindset. I have a family member who won't do the 401K at her job because she doesn't think it'll fit her budget & she needs all her money. Whatever. I learned to stop thinking “my budget” and start thinking “save”. Before anything else 10% of your pay should go in the bank towards an emergency fund. Trust me, you will figure out a way to pay all your bills. I didn't understand this before. As I learned to get my debt under control, and curb my spending, I started thinking I need to pay myself first, instead of “ok which bill do I pay first”. It's not an easy mindset to get used to but I did it. I don't have much debt now but I still live by the same principal.
We can't be afraid of our finances. We need to get into the markets (learn them first) and start investing. I am so disappointed that we are still behind the curve in wealth building. But I'm confient it'll get better. In the mean time, stop listening to those news stories about the economy. Create your own opportunities, start a side business, or invest in your professional development so you can increase your earning power. The rich don't get rich by listening to the news and believing they need to live in a certain state. They forge ahead, take chances and make their money work for them.
Adrienne Graham
Hues Consulting & Management Inc http://www.huesconsulting.com
Empowered Black Women Blog http://empoweredblackwomen.wordpress.com
January 4, 2009 at 1:05 pm