I bought an etching by a famous artist for $40 & resold it to a dealer for $1,500 25 years later. Not a bad investment.
The thing about collecting is that you have the opportunity to buy really CHEAP & use/enjoy the items as they accrue in value! Then, when the time comes, you can sell them for much more than you originally paid, especially if you are a savvy collector who can sniff out a real bargain. The same cannot be said for most items bought NEW - which generally FALL in value with use.
Here are frugal solutions to the above problems:
1) use your credit card for a meal at a fast food place to eat under $10 (Most of the major chains accept them nowadays.)
2) see if you can put a bandaid on car repairs before a major outlay - Like putting additives into your radiator (stopleak)/transmission (goop)/oil/gasoline (fuel injection cleaner) - You would be surprised that these will give you a bit more time before a major repair - I had an automatic transmission that would get clogged up a few times a year (on a new car!)& adding transmission cleaner would clear out whatever dirt was catching in it & save me oodles!) Can you do an adequate fix on those house repairs yourself? (We put a board on top of a weak part of our flooring & covered it with a rug & forget it's there.) Learn to do things yourself!
3) shop at the dollar store for rockbottom values on household good & lots of other things - save lots of $ from reg. prices.
4) weatherstrip your house yourself with newspaper under rugs for leaky cold floors/make "snakes" to put on leaky windows/and doors - (fill tubes with stuffing). Have heavy winter curtains. - put black paper on windows to absorb heat.
5) it's not too bad to pay a higher deductible on health ins. or car ins. - because ONE accident or incident will pay for it ALL (esp. when you are broke!)
6) DIY & learn to live superfrugally. Even if you can't save - you can get along on what you earn, which is better than most folks.
7)Think about less expensive schooling. Maybe you can get a degree online? Go to a community college for 2 yrs. & transfer - get good grades & GET A SCHOLARSHIP. (My father went to Brooklyn College in NYC because if was FREE then.) Consider how much it will mean in the long run. Best to go to an ivy if you can afford it - want to pursue a certain career - or if you can get help with TUITION.
Just a few hints on how you can manage EVEN when BROKE. I have been doing it for YEARS.
A dry erase board is a great tool for meal planning. You can go to an office supply store and get a dry erase board that's a monthly calendar, or you can make your own with a blank board using a permanent marker to draw the grid. Get one with magnets and put it right on your fridge. I like that it's easy to refer to, but also easy to change if my plans change.
My husband and I have been trying to plan like this, but we are incredibly lazy. But we're also very computer oriented. I've found my free account at www.recipezaar.com makes menu planning super easy. I don't even have to write out a list because the recipes I choose that week put all the ingredients on a shopping list for me. Just browse, print, and walk into the store!
Gordon Brown is certainly over qualified in economics, but I have had to endure a year of frustration with the way he has handled our banks, as for Alistair Darling, well I wouldnt hire him as an Office manager in my company, Let alone give him responsibility to manage how the banks lend our money. I mean why is Mr Darling still in a job? how have we allowed our banks to hoard our money to make there balance sheet is up to scratch and also using it to make sure low risk investments in order to repay the government asap. I feel that the senior management at lloyds group and RBS must be celebrating at how they now got all our money to give themselves bonuses. The have left the public high and dry, showing a complete lack of respect for Alistair Darling and Gordon Brown....and what do they do about it???? absolutely nothing
Wow, I'm jealous to hear that you say you 'love' what you do. I have to say that the moonlighting writing gig I'm doing for Mango Money is a lot more creative than my day job. I can honestly say I'm having fun with it!
Yesterday I wrote on my Facebook status, "I love my job, I love my job, I love my job..." as if a mantra will change how I feel about it. My friends all sarcastically responded 'Yeah right!' They know me way too well ;-)
So, I'm working on an exit strategy from my full-time job to working freelance. My living expenses are intentionally at an all time low so I've properly prepared for the transition. What I can't figure out though is medical benefits. Sure, I could buy insurance but I have so many pre-existing conditions that it would be useless to me.
COBRA is an option for 18 months, but then what? I wish group insurance would somehow be portable. If medical insurance wasn’t an issue I would be much more aggressive in making a career change!
We have a very similar story: my car was determined to be unsafe and expensive to fix, so we sold it to our mechanic and used the money to finance our move to a new city. Since I was taking my job with me and would be working from home without a daily commute, I thought one-car living would be a piece of cake-- and really, it should have been. Unfortunately I have been completely unable to learn to drive my husband's manual car (it's me, not him or the car, trust me) so my options have been limited. Most of the time my husband drives me wherever I need to go, sometimes I rent a car for important appointments, for group things sometimes a friend will pick me up, and sometimes I just don't go anywhere. (I can't even imagine how much money I haven't spent simply because I wasn't able to go to the store.) At times the inability to get myself around has been a royal pain, but we've made it work for almost two years now.
I look at interviews not as interrogations to be nervous about, but just a general meeting to discuss who you are and what you've done. I try to stay as relaxed as possible and talk to the interviewer as an equal.
In September, my husband and I purchased a split quarter of beef from a rancher in the area (Bay Area, CA). I couldn't be happier with the decision. We had originally purchased a chest freezer to help store the breast milk that I plan to donate, which is another story entirely. Anyway, I had been reading about the benefits of grass-fed beef and located a rancher whose prices and practices resonated with me.
It was such a great decision. The beef is higher quality than anything I could have found at the supermarket. Combined with the use of my bread machine, a well-stocked pantry and a weekly delivery from our local CSA, I haven't had to go to the grocery store in three weeks. Which is great, because a 4 month old baby and a grocery store is not an ideal mix!
We used to have a chest freezer and buy meat in bulk. Then we discovered: we were wasting money. Buying a side of beef or half a hog is fine if you're feeding a family. For a working couple, it makes no sense. Considering the cost of running the freezer (yes, we had an Energy Star) and the cost of buying the meat and processing, we were better off using the grocery store and meat market. We don't eat beef heart, beef tongue, beef liver, spare ribs (waste of time and energy and way too much gristle), chitlins, pig hocks, etc. Don't even ask me about power outages, freezer burn and cleaning a freezer!
Yup I definitely don't recommend plopping your entire retirement fund on any of these, but each one of them is fun to learn about and it is possible that there is price appreciation in the future. As to income, believe or not there are firms that rent out art to businesses and private residences. If you collect enough fossils you can probably put up a show and charge people admission to see them. If you are an expert in collectible books you can probably write articles about them and earn money. There are always options for income in anything. As long as you have fun doing it I think it's win win.
I am so glad to see this added to the discussion. I was devastated when I was not able to breastfeed my son. And to make matters worse, I feel (and still feel) like even some of my good friends judged me for it. People need to realize that this is not a choice of mine and that I would change it if I could.
What IS a choice of mine and what I can and have change is what I want to do about infant formula. I was like a lot of people. I figured the known brands were the only way to go. Until I learned that road was taking us straight into more debt! I did a lot of research that showed (and has been backed up in this discussion) that store brands are just as healthy for my baby as national brands at nearly half the price.
Now I see that Parent's choice formula is helping people save even more by offering a special...$10 for two 15.5 oz. cans of formula. Their regular price, I think, is somewhere around 12 bucks for 25 oz. So...good deal! And I, like you all, love to find me a good deal these days!
The timing on this is real good when you consider that the government, in its infinite wisdom (ha!), changed its WIC (Women, Intants and Children) policy TODAY. To promote more breastfeeding, they are cutting the subsidies for formula users, who will now in many cases be forced to buy formula for themselves. Read today where a lot of it is based on promoting more fruits and veggies. Great. What does that do for an infant who relies entirely on formula for their nutrients?
The utlimate business solution. The ability to cut the cost of any business expense, or just plain invest.
Developed multiple arbitrages for the financial markets. Arbitrages that produce just a few percent a year, to arbitrages that produce over 30 percent a year.
In 2001 i started developing, as of now, a dozen arbitrages. I lock in an X percentage, and Y time later, i close out the arbitrage. Over 30%/yr.
Risk-Free Investing is not only possible, but in abundance. Just that people are told and taught that it is impossible. No risk has been in front of all, but not seen.
The market is unlimited.
I'm interested in selling, or partnering to sell, or partner in a business that uses my arbitrage.
Mary ... sizing for a smaller system through better efficiency is not only possible, but the sensible and frugal thing to do. Google "zero net energy building" to learn more.
We just did a major upgrade of the insulation in our home through our local utility program for only $500. Just call and ask for a free energy audit, and they will refer you to whoever they are using to make upgrades. The government picks up 75% of the cost up to $2000 in our state to have somebody come in and check how much your house is "leaking," they'll seal up all the cracks, install better weatherstripping, and insulate the heck out of your attic. Then, they'll do followup "leak test" to show you how much better your house should hold heat. We dropped from 2300 (a bad number) to 1800 (a much better number), but next year we'll qualify for an additional $1500 worth of services and can get our house down another 600 points to 1200 (the "goal" number for a house our age and size). We're estimating our heating bill should drop around 25% and earn back that $500 investment within 1.5 years.
We also took advantage of the 30% tax credit up to $1500 to purchase a wood-burning fireplace insert stove. You can only take the credit once during 2009/2010, but if you are a two-income family with a big mortgage and a lot of kids, you will want to make the investment THIS year because purportedly the credit will be subject to the Alternative Minimum Tax next year (it's unclear whether Congress fixed this defect for 2010). You don't need to buy a wood stove ... the credit also goes for new energy efficient windows and doors (but not the installation cost), weatherstripping, extra insulation, etc. However, BE CAREFUL the product you buy actually qualifies for the tax credit. An Energy Star rating is not enough ... Congress upped the standards and the industry has not caught up yet, so get it in writing from the manufacturer before you buy.
Lastly, if you've ever considered investing in a true alternative energy system such as solar PV, solar hot water, wind, geothermal, etc., now is the time to invest. The 30% credit is making many of these technologies cost-competitive for the first time and there is no cap on how much you can spend (if the credit is more than your tax bill, you can carry it over multiple years). However, be cautious that the 2010 Alternative Minimum Tax won't snag you (you may need to insist in a 2009 install date).
Mary, perhaps a solar hot water heating system combined with a backup-heat wood stove would heat your home, and you can just keep the old boiler around a bit longer for 3rd-tier backup?
The government is GIVING AWAY and PAYING 30% of the cost to upgrade. With the market in the dumps right now, and figuring in broker fees and taxes, what other investment do you know of that will give a guaranteed tax-free 30% return on investment over the next several years?
Hey man, and what about the people that dosent live in the USA, I'm in Guatemala a Microsoft doest give apply warranty here, this console is dead, i got now pS3...
these investments are good if you have money to spare and you have a liking towards this things. i personally have never heard of fossil investments and i really dont know what to think of them. as for the books, i think they are perfect in preservation of value and history. i have never heard of anyone getting rich off these things but i have heard of rich people investing in this things to keep their money safe.... like a gilt fund or something...:)
I agree with the concept that we create our own reality. The more we think about lack, that is what we attract, more lack. I’m not interesting in creating lack, I’m interesting in creating a joyful life.
I have struggled in this economy but I can think of times in my career where I was caught more off-guard. Because of earlier experiences, I feel like I’m going to be OK in this economy.
In 2001 after the 9/11 attacks, I had just pulled myself out of debt. It took me 10 years to pay off that debt! Then I was laid off after the attacks. Although I wasn't in debt, I had no savings which was not comfortable terrain for me since I ended up being unemployed for over six months. Going back into debt was NOT an option!!
I promised myself at that time that WHEN the economy falters again, because it’s cyclical and it will go up and down, I will have an emergency fund of six months of salary saved. It took me such a long time to save six months of salary, but I did.
Fortunately, in this economy I managed to keep my job but I've been trying to sell a house from my divorce for over 2 years ago. I finally took a loss on the home just so that I could 'start a new chapter' in my life. I close on October 20th. It feels good to release it.
Real estate investments won't always yield a profit, just like the stock market won't either.
In this economy I've learned to:
1. Diversify my talents by moonlighting
2. Be more disciplined with how I'm spending my money.
3. Cut my losses when a negative experience is holding me down; regardless if that means a breakup or an investment
4. Stay out of debt and live within my means
I think the economy is coming back but like a pendulum that swings, it will take time to find its way back to a good rhythm.
Even better - plan after looking at the grocery store flyers, but before going grocery shopping. Combine with a chest freezer for maximum convenience and savings. =)
What a great article. Thank you for taking the time to write it.
I especially appreciate the information about freelance writing. I landed my first real freelance writing position about a month ago. I'm really excited about it and having fun! My client's product is a pre-paid debit card by MasterCard called Mango Money, and I'm using it in my daily life to budget my money. I feel so fortunate to use a product that helps me budget my money while getting income.
What I love about writing is the opportunity to express my thoughts. This is really the first time in my career where I've been able to be so creative.
If anyone else in the forum has suggestions on outlets for freelance writing opportunities, I welcome the ideas!
I read in some book or it was a dialogue in some movie - debt is the real power, that is how banks control people. I think the book gives enough reasons for people to live within their means.
The big win of stocks, bonds, and real estate is that they can provide income. Sure, many stocks don't pay a dividend, there's such a thing as zero-coupon bonds, and real estate usually only provides income when it's rented out. But from within the universe of each investment category, investing for income is a real option.
I don't see any obvious way to earn income from any of the investments that you list. Any financial return has to come from rising prices.
It may well turn out that prices of just about anything will be higher in the future than they are now, but for investments, I generally prefer they to earn some income.
I bought an etching by a famous artist for $40 & resold it to a dealer for $1,500 25 years later. Not a bad investment.
The thing about collecting is that you have the opportunity to buy really CHEAP & use/enjoy the items as they accrue in value! Then, when the time comes, you can sell them for much more than you originally paid, especially if you are a savvy collector who can sniff out a real bargain. The same cannot be said for most items bought NEW - which generally FALL in value with use.
Here are frugal solutions to the above problems:
1) use your credit card for a meal at a fast food place to eat under $10 (Most of the major chains accept them nowadays.)
2) see if you can put a bandaid on car repairs before a major outlay - Like putting additives into your radiator (stopleak)/transmission (goop)/oil/gasoline (fuel injection cleaner) - You would be surprised that these will give you a bit more time before a major repair - I had an automatic transmission that would get clogged up a few times a year (on a new car!)& adding transmission cleaner would clear out whatever dirt was catching in it & save me oodles!) Can you do an adequate fix on those house repairs yourself? (We put a board on top of a weak part of our flooring & covered it with a rug & forget it's there.) Learn to do things yourself!
3) shop at the dollar store for rockbottom values on household good & lots of other things - save lots of $ from reg. prices.
4) weatherstrip your house yourself with newspaper under rugs for leaky cold floors/make "snakes" to put on leaky windows/and doors - (fill tubes with stuffing). Have heavy winter curtains. - put black paper on windows to absorb heat.
5) it's not too bad to pay a higher deductible on health ins. or car ins. - because ONE accident or incident will pay for it ALL (esp. when you are broke!)
6) DIY & learn to live superfrugally. Even if you can't save - you can get along on what you earn, which is better than most folks.
7)Think about less expensive schooling. Maybe you can get a degree online? Go to a community college for 2 yrs. & transfer - get good grades & GET A SCHOLARSHIP. (My father went to Brooklyn College in NYC because if was FREE then.) Consider how much it will mean in the long run. Best to go to an ivy if you can afford it - want to pursue a certain career - or if you can get help with TUITION.
Just a few hints on how you can manage EVEN when BROKE. I have been doing it for YEARS.
A dry erase board is a great tool for meal planning. You can go to an office supply store and get a dry erase board that's a monthly calendar, or you can make your own with a blank board using a permanent marker to draw the grid. Get one with magnets and put it right on your fridge. I like that it's easy to refer to, but also easy to change if my plans change.
My husband and I have been trying to plan like this, but we are incredibly lazy. But we're also very computer oriented. I've found my free account at www.recipezaar.com makes menu planning super easy. I don't even have to write out a list because the recipes I choose that week put all the ingredients on a shopping list for me. Just browse, print, and walk into the store!
Gordon Brown is certainly over qualified in economics, but I have had to endure a year of frustration with the way he has handled our banks, as for Alistair Darling, well I wouldnt hire him as an Office manager in my company, Let alone give him responsibility to manage how the banks lend our money. I mean why is Mr Darling still in a job? how have we allowed our banks to hoard our money to make there balance sheet is up to scratch and also using it to make sure low risk investments in order to repay the government asap. I feel that the senior management at lloyds group and RBS must be celebrating at how they now got all our money to give themselves bonuses. The have left the public high and dry, showing a complete lack of respect for Alistair Darling and Gordon Brown....and what do they do about it???? absolutely nothing
Thanks for the link love and the compliments!
Wow, I'm jealous to hear that you say you 'love' what you do. I have to say that the moonlighting writing gig I'm doing for Mango Money is a lot more creative than my day job. I can honestly say I'm having fun with it!
Yesterday I wrote on my Facebook status, "I love my job, I love my job, I love my job..." as if a mantra will change how I feel about it. My friends all sarcastically responded 'Yeah right!' They know me way too well ;-)
So, I'm working on an exit strategy from my full-time job to working freelance. My living expenses are intentionally at an all time low so I've properly prepared for the transition. What I can't figure out though is medical benefits. Sure, I could buy insurance but I have so many pre-existing conditions that it would be useless to me.
COBRA is an option for 18 months, but then what? I wish group insurance would somehow be portable. If medical insurance wasn’t an issue I would be much more aggressive in making a career change!
All my best,
Kim
We have a very similar story: my car was determined to be unsafe and expensive to fix, so we sold it to our mechanic and used the money to finance our move to a new city. Since I was taking my job with me and would be working from home without a daily commute, I thought one-car living would be a piece of cake-- and really, it should have been. Unfortunately I have been completely unable to learn to drive my husband's manual car (it's me, not him or the car, trust me) so my options have been limited. Most of the time my husband drives me wherever I need to go, sometimes I rent a car for important appointments, for group things sometimes a friend will pick me up, and sometimes I just don't go anywhere. (I can't even imagine how much money I haven't spent simply because I wasn't able to go to the store.) At times the inability to get myself around has been a royal pain, but we've made it work for almost two years now.
I look at interviews not as interrogations to be nervous about, but just a general meeting to discuss who you are and what you've done. I try to stay as relaxed as possible and talk to the interviewer as an equal.
Ooooo, or maybe even a canned pumpkin puree. The possibilities are endless for this! I love it!
I bet a sweet potato puree in place of the bananas would be yummy! Gotta try that.
In September, my husband and I purchased a split quarter of beef from a rancher in the area (Bay Area, CA). I couldn't be happier with the decision. We had originally purchased a chest freezer to help store the breast milk that I plan to donate, which is another story entirely. Anyway, I had been reading about the benefits of grass-fed beef and located a rancher whose prices and practices resonated with me.
It was such a great decision. The beef is higher quality than anything I could have found at the supermarket. Combined with the use of my bread machine, a well-stocked pantry and a weekly delivery from our local CSA, I haven't had to go to the grocery store in three weeks. Which is great, because a 4 month old baby and a grocery store is not an ideal mix!
We used to have a chest freezer and buy meat in bulk. Then we discovered: we were wasting money. Buying a side of beef or half a hog is fine if you're feeding a family. For a working couple, it makes no sense. Considering the cost of running the freezer (yes, we had an Energy Star) and the cost of buying the meat and processing, we were better off using the grocery store and meat market. We don't eat beef heart, beef tongue, beef liver, spare ribs (waste of time and energy and way too much gristle), chitlins, pig hocks, etc. Don't even ask me about power outages, freezer burn and cleaning a freezer!
Yup I definitely don't recommend plopping your entire retirement fund on any of these, but each one of them is fun to learn about and it is possible that there is price appreciation in the future. As to income, believe or not there are firms that rent out art to businesses and private residences. If you collect enough fossils you can probably put up a show and charge people admission to see them. If you are an expert in collectible books you can probably write articles about them and earn money. There are always options for income in anything. As long as you have fun doing it I think it's win win.
I am so glad to see this added to the discussion. I was devastated when I was not able to breastfeed my son. And to make matters worse, I feel (and still feel) like even some of my good friends judged me for it. People need to realize that this is not a choice of mine and that I would change it if I could.
What IS a choice of mine and what I can and have change is what I want to do about infant formula. I was like a lot of people. I figured the known brands were the only way to go. Until I learned that road was taking us straight into more debt! I did a lot of research that showed (and has been backed up in this discussion) that store brands are just as healthy for my baby as national brands at nearly half the price.
Now I see that Parent's choice formula is helping people save even more by offering a special...$10 for two 15.5 oz. cans of formula. Their regular price, I think, is somewhere around 12 bucks for 25 oz. So...good deal! And I, like you all, love to find me a good deal these days!
The timing on this is real good when you consider that the government, in its infinite wisdom (ha!), changed its WIC (Women, Intants and Children) policy TODAY. To promote more breastfeeding, they are cutting the subsidies for formula users, who will now in many cases be forced to buy formula for themselves. Read today where a lot of it is based on promoting more fruits and veggies. Great. What does that do for an infant who relies entirely on formula for their nutrients?
Anyway, check out http://www.parentschoiceformula.com for more info!
The Holy Grail to Investing.
The utlimate business solution. The ability to cut the cost of any business expense, or just plain invest.
Developed multiple arbitrages for the financial markets. Arbitrages that produce just a few percent a year, to arbitrages that produce over 30 percent a year.
In 2001 i started developing, as of now, a dozen arbitrages. I lock in an X percentage, and Y time later, i close out the arbitrage. Over 30%/yr.
Risk-Free Investing is not only possible, but in abundance. Just that people are told and taught that it is impossible. No risk has been in front of all, but not seen.
The market is unlimited.
I'm interested in selling, or partnering to sell, or partner in a business that uses my arbitrage.
Thomas
352-283-3326
HolyGrailToInvesting@hotmail.com
Mary ... sizing for a smaller system through better efficiency is not only possible, but the sensible and frugal thing to do. Google "zero net energy building" to learn more.
We just did a major upgrade of the insulation in our home through our local utility program for only $500. Just call and ask for a free energy audit, and they will refer you to whoever they are using to make upgrades. The government picks up 75% of the cost up to $2000 in our state to have somebody come in and check how much your house is "leaking," they'll seal up all the cracks, install better weatherstripping, and insulate the heck out of your attic. Then, they'll do followup "leak test" to show you how much better your house should hold heat. We dropped from 2300 (a bad number) to 1800 (a much better number), but next year we'll qualify for an additional $1500 worth of services and can get our house down another 600 points to 1200 (the "goal" number for a house our age and size). We're estimating our heating bill should drop around 25% and earn back that $500 investment within 1.5 years.
We also took advantage of the 30% tax credit up to $1500 to purchase a wood-burning fireplace insert stove. You can only take the credit once during 2009/2010, but if you are a two-income family with a big mortgage and a lot of kids, you will want to make the investment THIS year because purportedly the credit will be subject to the Alternative Minimum Tax next year (it's unclear whether Congress fixed this defect for 2010). You don't need to buy a wood stove ... the credit also goes for new energy efficient windows and doors (but not the installation cost), weatherstripping, extra insulation, etc. However, BE CAREFUL the product you buy actually qualifies for the tax credit. An Energy Star rating is not enough ... Congress upped the standards and the industry has not caught up yet, so get it in writing from the manufacturer before you buy.
Lastly, if you've ever considered investing in a true alternative energy system such as solar PV, solar hot water, wind, geothermal, etc., now is the time to invest. The 30% credit is making many of these technologies cost-competitive for the first time and there is no cap on how much you can spend (if the credit is more than your tax bill, you can carry it over multiple years). However, be cautious that the 2010 Alternative Minimum Tax won't snag you (you may need to insist in a 2009 install date).
Mary, perhaps a solar hot water heating system combined with a backup-heat wood stove would heat your home, and you can just keep the old boiler around a bit longer for 3rd-tier backup?
The government is GIVING AWAY and PAYING 30% of the cost to upgrade. With the market in the dumps right now, and figuring in broker fees and taxes, what other investment do you know of that will give a guaranteed tax-free 30% return on investment over the next several years?
Hey man, and what about the people that dosent live in the USA, I'm in Guatemala a Microsoft doest give apply warranty here, this console is dead, i got now pS3...
these investments are good if you have money to spare and you have a liking towards this things. i personally have never heard of fossil investments and i really dont know what to think of them. as for the books, i think they are perfect in preservation of value and history. i have never heard of anyone getting rich off these things but i have heard of rich people investing in this things to keep their money safe.... like a gilt fund or something...:)
I agree with the concept that we create our own reality. The more we think about lack, that is what we attract, more lack. I’m not interesting in creating lack, I’m interesting in creating a joyful life.
I have struggled in this economy but I can think of times in my career where I was caught more off-guard. Because of earlier experiences, I feel like I’m going to be OK in this economy.
In 2001 after the 9/11 attacks, I had just pulled myself out of debt. It took me 10 years to pay off that debt! Then I was laid off after the attacks. Although I wasn't in debt, I had no savings which was not comfortable terrain for me since I ended up being unemployed for over six months. Going back into debt was NOT an option!!
I promised myself at that time that WHEN the economy falters again, because it’s cyclical and it will go up and down, I will have an emergency fund of six months of salary saved. It took me such a long time to save six months of salary, but I did.
Fortunately, in this economy I managed to keep my job but I've been trying to sell a house from my divorce for over 2 years ago. I finally took a loss on the home just so that I could 'start a new chapter' in my life. I close on October 20th. It feels good to release it.
Real estate investments won't always yield a profit, just like the stock market won't either.
In this economy I've learned to:
1. Diversify my talents by moonlighting
2. Be more disciplined with how I'm spending my money.
3. Cut my losses when a negative experience is holding me down; regardless if that means a breakup or an investment
4. Stay out of debt and live within my means
I think the economy is coming back but like a pendulum that swings, it will take time to find its way back to a good rhythm.
All my best,
Kim
Even better - plan after looking at the grocery store flyers, but before going grocery shopping. Combine with a chest freezer for maximum convenience and savings. =)
What a great article. Thank you for taking the time to write it.
I especially appreciate the information about freelance writing. I landed my first real freelance writing position about a month ago. I'm really excited about it and having fun! My client's product is a pre-paid debit card by MasterCard called Mango Money, and I'm using it in my daily life to budget my money. I feel so fortunate to use a product that helps me budget my money while getting income.
What I love about writing is the opportunity to express my thoughts. This is really the first time in my career where I've been able to be so creative.
If anyone else in the forum has suggestions on outlets for freelance writing opportunities, I welcome the ideas!
All my best,
Kim
I read in some book or it was a dialogue in some movie - debt is the real power, that is how banks control people. I think the book gives enough reasons for people to live within their means.
The big win of stocks, bonds, and real estate is that they can provide income. Sure, many stocks don't pay a dividend, there's such a thing as zero-coupon bonds, and real estate usually only provides income when it's rented out. But from within the universe of each investment category, investing for income is a real option.
I don't see any obvious way to earn income from any of the investments that you list. Any financial return has to come from rising prices.
It may well turn out that prices of just about anything will be higher in the future than they are now, but for investments, I generally prefer they to earn some income.
Imagine my surprise when I updated my google reader feed and saw one of my own pictures in your post!