The Recession is Coming! The Recession is Coming!
And you know what that means! Time to start investing!!
Whoa, wait a tic there Scott. What the hell do you mean start investing?!? The economy is in the tank, the housing market is a smoking wasteland, the dollar is worthless and gas and oil prices are through the roof! I can’t afford my regular monthly bills, never mind start investing. Well, you’re right. The recent economy woes and high oil prices have caused a lot of people to cinch their money belts tighter and tighter. Maybe jumping straight into investing is a bit premature.
The fact is that you need money to make money. So we need to think about accumulating some money first. I’m willing to bet… hell I’m willing to guarantee that everyone reading this can manage to find $25-$50 every month to put toward savings. Impossible, you think. Well I’m also willing to bet that everyone reading this, doesn’t really know where every penny of their money goes each month. It’s amazing how people treat their money. Personal finances are often listed as one of the top five reasons for stress and causes for divorce. People fret and worry and agonize about money, and yet when they actually get cash in their hands, they go temporarily insane. The “smart” thing to do is pay down debt with the cash. The “not quite as smart, but still smart” thing to do with the extra cash is buy that plasma TV you’ve been wanting. Yet people consistently ignore the smart things to do, and think, “Now with this extra cash, I can put the plasma TV on credit, AND get a new couch!” Now you’ve got more stuff you don’t truly need, AND you’re deeper in debt! Two strikes with one pitch. Now is the time to take control of your money. The first step is finding out exactly where every red penny of your money is currently going.
And that my friends, is where most of us say, “Screw this counting pennies crap. I’m going to apply for another credit card.” Well, counting pennies and writing down and categorizing every single purchase is so last decade. You’re in the information age now, baby!!
You’re now probably expecting me to suggest software programs that do all of that counting and catgegorizing for you, but cost $50-$100, such as Microsoft Money or Quicken. Well, those are fine programs, but after all is said and done… these programs are basically just doing math for you. Free websites can do it just as good or better, and be just as secure. They offer automatic updates and synchronization with all of your financial institutions.
Mint.com is one such, and will even let you split ATM Cash withdrawals into different categories. However, if your bank’s online system isn’t supported, this site might not work for you. On the other hand, if your bank lets you export your transactions, Wesabe.com will import them and get you right on track. Both sites boast tools and communities that give individual saving advice instead of the generic “Skip a couple of coffee’s at Starbucks each week.” A couple of other sites that track your finances that I’ve heard of, but not tried out are Buxfer and Expensr. Another great source for being frugal and finding tips for saving, is the Living Below Your Means discussion board at The Motley Fool.
And before you ask… No. I don’t know where every penny of my money is going. Hey now! I never once claimed that I wasn’t a hypocrite. It’s just that with moving to Virginia soon, and a burst pipe that flooded my house… my finances will be rather unusual for the next few months, and I won’t get a good read on what my everyday spending habits are costing me.
So, once you figure out a way to squeeze an extra $25-$50 bucks from your finances each month to put toward savings… come back and find out why NOW is the best time to start investing!
Tags: Investing, Money, Personal Finance