6 Lessons Learned From The Recession (And Government Shutdown)

photo credit: maneobjective.com

photo credit: maneobjective.com

Hello Sophisticated Spenders!

The government shutdown was around 53 weeks ago.  If you’d put away $100 per week since then, you’d have $5,300 in your emergency fund right now.

That’s a pretty nice chunk of change!

I was reading thru an article from MSNBC on “Lessons Learned from the Recession“.  While I don’t quite agree with all 6 lessons, I thought I’d give my 2 cents on what they had to day.

1. Use Cash and Borrow Less: I think this should be a rule of thumb for everyday life.  Unless you’re borrowing for (in this particular order) an education, real estate or a car, you really shouldn’t be borrowing for anything.  Keep your spending smart.  I noticed that I spend less at happy hours when I use cash.  I also don’t whip out my credit card if I know I can’t pay off the balance.

2. Make sure you build an emergency fund: There was an article that said most people couldn’t come up with $2,000 without having to sell items or liquidate assets.  This is horrible news.  Now is a critical time for saving for emergencies-most people would argue that our current economy is in a state of emergency!

3. Setting priorities is critical: It’ always very important to know where you stand.  Prioritize debt, bills and fun.  Sorry fun is last on the list.  And 9 times out of 10, too much “fun” is the cause of most peoples debt.

4. Budget is not a dirty word: I love tracking my budget on a daily basis.  I think it’s a really smart idea to set limits on everything and spend freely until you’ve reached the end of you budget!

5. Being a penny-pincher makes you smart, not cheap: I am the queen of deals and coupons!  But remember they are only as good as the product.  I only look for deals and coupons on the things that I already love.  I got into groupon trouble by not keeping a lid on the great “deals” and I ended up never using one because my eyes were bigger than my stomach.

6. Stay in charge of your investments:  I would say I have dropped the ball on this one.  I set up my retirement allocations and have only gone in only a couple of times this year and moved a few things around.  I have also not been making any moves with the stocks that I have with Sharebuilderand TD Ameritrade.  Maybe I will do better in the upcoming months.

Any things you guys have learned from the recession?  I’d love to hear your thoughts in the comments below!

More From Sophisticated Spender!

Leave a comment

Your email address will not be published. Required fields are marked *