Taken for Granted
Yeah, yeah, yeah, I know I haven't posted since December. I got a new job and started going to the gym in the morning, so blogging time fell in my priority list. The good news is that I lost nine pounds! But let's forget about that for a minute and talk about macroeconomics and taking things for granted...just like you used to take daily Tepom.com posts for granted.
The down economy has taught the world about how sweeping problems under the carpet -- no matter how small -- can easily blow up in our faces. But it's promising to hear that Americans' savings rate is increasing and our consumer spending is in steady decline. Government stimulus and easy credit are quick ways to get things moving again, but it's not the be-all-end-all. Just because the economy will die of thirst if we stop the flow of water doesn't mean that we should stick a fire hose in its mouth.
Conservative oversight of our finances at a personal level is a big piece of what's going to get us out of this mess, but it's much more complicated than you might think. Our financial soundness and stability is about more than just saving ten dollars at a time, earning points with credit card purchases, and gaining 1.5% extra return in a savings portfolio. It's about planning for the worst and taking less for granted.
What are some of the things that our parents may have taken for granted that we Gen-X and Gen-Y'ers now know that we can't?
1. If you work hard, you'll have job security
2. If you buy a house, it will appreciate in value
3. When you turn 65, you can retire, move to Florida, and cash your Social Security checks for the rest of your life.
4. You can have as many children as you'd like whenever you'd like to have them.
I'm sorry to say it, but this economy has taught me that I should never assume anything; there are too many smart people standing in the unemployment line. Though my wife and I are both gainfully employed and don't expect to be laid off, we've made some significant life choices to improve our financial resilience that go beyond bargain hunting:
1. Established a moratorium on home projects
2. Began saving cash to refinance with much more equity (we're hoping to significantly lower our currently affordable monthly mortgage payment)
3. Agreed to wait at least six years to have children
4. Set a goal to open our own business, but only after our house is paid off
Some might argue that a conservative portfolio with complete debt elimination and low-risk investments isn't the best plan, but my wife and I have agreed to pursue it. But given the current macroeconomic situation, lower returns and lower risks look a little more promising than they used to.
Says Gabrielle to her husband Carlos on Desperate Housewives: "Save our money? What?!? Come on, nobody does that anymore!"
If you currently have a job, have you changed your spending habits to "weather the storm?" Have you taken any major steps besides cutting back on the little stuff?
Much thanks to my reader Tim Cederman-Hayson (www.cederman.com) from Queensland, Australia for kicking me in the ass and reminding me to start posting again :-)
Best wishes,
- Scott -
The down economy has taught the world about how sweeping problems under the carpet -- no matter how small -- can easily blow up in our faces. But it's promising to hear that Americans' savings rate is increasing and our consumer spending is in steady decline. Government stimulus and easy credit are quick ways to get things moving again, but it's not the be-all-end-all. Just because the economy will die of thirst if we stop the flow of water doesn't mean that we should stick a fire hose in its mouth.
Conservative oversight of our finances at a personal level is a big piece of what's going to get us out of this mess, but it's much more complicated than you might think. Our financial soundness and stability is about more than just saving ten dollars at a time, earning points with credit card purchases, and gaining 1.5% extra return in a savings portfolio. It's about planning for the worst and taking less for granted.
What are some of the things that our parents may have taken for granted that we Gen-X and Gen-Y'ers now know that we can't?
1. If you work hard, you'll have job security
2. If you buy a house, it will appreciate in value
3. When you turn 65, you can retire, move to Florida, and cash your Social Security checks for the rest of your life.
4. You can have as many children as you'd like whenever you'd like to have them.
I'm sorry to say it, but this economy has taught me that I should never assume anything; there are too many smart people standing in the unemployment line. Though my wife and I are both gainfully employed and don't expect to be laid off, we've made some significant life choices to improve our financial resilience that go beyond bargain hunting:
1. Established a moratorium on home projects
2. Began saving cash to refinance with much more equity (we're hoping to significantly lower our currently affordable monthly mortgage payment)
3. Agreed to wait at least six years to have children
4. Set a goal to open our own business, but only after our house is paid off
Some might argue that a conservative portfolio with complete debt elimination and low-risk investments isn't the best plan, but my wife and I have agreed to pursue it. But given the current macroeconomic situation, lower returns and lower risks look a little more promising than they used to.
Says Gabrielle to her husband Carlos on Desperate Housewives: "Save our money? What?!? Come on, nobody does that anymore!"
If you currently have a job, have you changed your spending habits to "weather the storm?" Have you taken any major steps besides cutting back on the little stuff?
Much thanks to my reader Tim Cederman-Hayson (www.cederman.com) from Queensland, Australia for kicking me in the ass and reminding me to start posting again :-)
Best wishes,
- Scott -
posted by Scott Bliss @ 6:31 PM
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