As I recently flew within the domestic US last week, I was pleasantly surprised to see only a couple of people wearing masks within the airports I visited. Even though the news has gotten worse and there's now a fatality within the USA, I find it hard to imagine that the whole world is going to come crashing down. The tourism industry will definitely be taking a hit, but people still need to eat, a place to stay, transportation to get to work, etc.
Nobody knows how bad it'll be, but now's the best time to get a mortgage, re-finance, or start investing in the market with all this downturn. I recently attended a talk and read an article where "on average" every dollar invested in the market will double in 10 years. So if the market tanks further in the next couple of weeks or months, and you've saved up a sizable cash cushion that you don't currently need, why not invest? It's definitely a hard thing to do cause because nobody knows how bad this current drop can be and nobody likes losing money, but just remember that the 2008 drop was about 50% as a worst case scenario. If the market tanks down to that level of percentage again, it could definitely be worth the gamble to wade back into the market. Here's a photo showing how the bulls always win over bears long term.
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I had an interesting conversation recently when I explained that my workplace offered fitness classes with showers and the conversation was steered about saving money.
I've heard the rumors in college about how new professors often sleep and work on the school campus; and recently about google employees that were saving money by living in their car and doing everything possible on the google campus such as eating, sleeping, showering, doing laundry, etc. I hadn't realize that I could have done it at my current workplace as well! The only amenity I don't have access to is laundry service. However, I was educated that it could easily be done if I went to a laundry-mat. My living situation could be managed by work, if I chose to! I'm definitely not recommending this to my readers, but if times are really tough and you're fortunate to be working at a Fortune 500 where a company provides meals and showers, it is possible to lower your living costs by not renting out a place and living in your car. Ideally, it would make sense if you could live in a place like this https://sportsmobile.com/mercedes-benz-4x4-sprinter/ that would be less conspicuous and blend in the parking lot, but I'm sure a minivan could be converted something livable. This unorthodox living situation would definitely change your social life, reputation, and mental sanity, but you could definitely put that money saved towards a future down payment, retirement fund, or financial related goals important to you! Luckily, I was able to attend a financial planning seminar today and would like to dispense some financial habits I've picked up. You had to attend to really have these notes meaningful to you, but here are the top things that I've learned with my personal anecdotes added in. :)
1. First you have to determine total your net worth. Sit down one night after work and crank up "Under Pressure" by Queen & David Bowie. Next, calculate what your total net worth is. Your Total Net Worth = Assets - Liabilities. Through this work, you should realize what position you're in. Now, it's your J-O-B to increase your assets and decrease your liabilities. 2. Determine and realize what your goals are. Depending on your life stage, realize what your goals are. Are you trying to pay down your student debt? Sick of living on food stamps to get your three daily meals? Saving to buy a car so that you can get to work? Paying for your child's college tuition? Ready to retire in Hawaii? Having these goals and planning on what you want definitely helps you with goals. 3. Make sure that you create a savings plan that contains: A. An Emergency fund (should be at least 6 months of living expenses) B. Savings for Short Term Goals C. Retirement Savings 4. Think about retirement. What are your goals for Retirement? What percent of your average annual gross salary do you need to retire on? What do you want your retirement to look like? What lifestyle compromises are you willing to make? Realize that heath care costs will likely increase in the future! Tips and Tricks 1. You're eligible for one free credit report per company every year. That means you can get multiple credit reports a year, cause there are multiple companies out there. For example, you can draw a credit report from TransUnion in 1 quarter and Experian in another quarter, etc. 2. If you're in a precarious situation, you MUST change your behavior. Don't run away from your problems. Time to face reality. You MUST reduce your debt. It's much better to cut down your costs and pay down your debt asap. Pay off your credit card debt that has the highest interest rate ASAP. 3. You really need to invest in your 401k or 403b if your company has one available. 4. You should really save 15% of your salary for retirement. Life is hard. It's going to get harder in the future. What ended the good ole times in America? Globalization. What's next? Artificial Intelligence taking over your JOB. Be afraid, but be prepared my friends. 5. Pay off your credit cards to zero, but don't cancel them. Don't close the card. Put it somewhere secure so your borrowing limit is still high. Tips for Saving Money 1. Turning lights off 2. Wear multiple layers instead of using the heater/Wear easy breathing clothes instead of using the A/C 3. Eating in/Cooking at home 4. Shopping at various grocery stores using coupons/sales 5. Buying easy to care for clothes 6. Giving gifts of trade/service 7. Taking advantage of library, free movies, discounts, community events, free concerts 8. Pay with cash as opposed to credit 9. Check out your local goodwill store for goods/shop at discount clothing stores for high quality goods at low prices (TJ Maxx, Nordstrom Rack, etc.) And most importantly... Spend less than you make |
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