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So we are not in hog heaven right now.
You haven’t removed any money from your piggy bank, but it seems to be losing weight anyway. The DOW is sinking faster than Bernie Madoff’s reputation and the national debt is growing faster than Rush Limbaugh’s pant size. It’s not all that clear that we’re “all socialists now,” but it’s pretty apparent that many of us feel somewhat powerless.
So what do we do now?
Surfing the Economic Rapids
The Wall Street Journal has some ideas about places it may not make sense to scrimp.
First, they say, if you are not sure what to do, be willing to pay for expert advice.
I know I’m not and expert on everything, and at times realize that I need advice. I will definitely do my best to find my own answers. At some point, my coach (my significant other) Holly, will tell me, “You need to find someone who knows what the hell they are dong.” Ahhhhhhhhh, wisdom.
Next, they say to pay down some debt.
These tough times may teach us this, if nothing else. On the other hand, when Erin Burnett of CNBC was asked if Americans had learned this lesson. She said that we’ve probably learned it for now. Ten years from now, we may make the same mistakes again. Our brains just haven’t evolved to hold these hard times in memory for extended periods. Think of the economic madness like it’s a toothache. You’ve had a toothache, right. When it’s throbbing away, you’ll do ANYTHING to get rid of it. Once the pain’s gone, over time, you’re busy, and maybe the flossing falls off a bit.
Third, WSJ says to Pay Yourself.
The dollaars people sock away has risen since we drove off this cliff. My experience in talking to folks, though, is that people are a bit shy in putting money in the bank. Rational fear? I don’t know, but lumpy mattresses can’t be all that comfy, either.
Fourth, Pay for the good little things you can do for yourself.
Small indulgences, they call it. I was in graduate school during one of the last recessions. That is when Godiva Chocolates became a hot property. I wonder what the next fine treat will be, once people get tired of eating McDonalds.
Fifth, Pay for some things you could do for yourself.
The journal says this one well -
“Some retirees are always worried they will run out of money. They know how tough times can get,” he says. “But some retirees may be pinching pennies unnecessarily. They don’t want to pay some guy $50 to shovel the driveway during a snowstorm, and then they may end up falling.”
Finally, Comparison Shop.
When you are going to buy something, look around. Barry Schwartz, author of The Paradox of Choice, advises to buy what you need, and to buy the product that “satisfices” rather than what is ideal. His TED video is in the multimedia box. Well worth a look.
All of this is hard on both our bodies and our brains. I have to say here that I am not confident in the people who are supposedly running this country. Barack Obama is an intelligent man. He can’t do this alone. I do believe in the people of our country. We are resilient for the most part, and will succeed in bringing life back into our economy and our way of living. But I do think things will be very different.
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