New Financial Plan: Marry a Beer Heir

Finance 101: Coping in a Tight Economic Market

Unfortunately, we've all been watching the news and have heard of the current (and growing) financial crisis taking place on Wall St.. I'm not one to typically give financial advice, but I've been reading some articles, and thought I should set up a sound economic plan for myself (with the help of my financial planner). So, I thought I'd share. Attached are just a few random tips. Add to these as you wish.

1. Don't skimp on your 401k - think LONG-TERM. Maybe you want to reallocate your portfolio, but do not skimp on your future. "...history shows that some of the best long-term gains go to investors willing to buy stocks when they’re reviled, as in the years following major setbacks like the 1929 crash and the 1973-1974 bear market." [CNN]
2. Think of new and creative ways to cut back.
   

• Try shopping at your local farmer's market as opposed to eating out - buy only the essentials, don't overdo it in the grocery store.
• Pack your own lunch. To escape the office go for a walk during the day.
• Drink TAP, studies are finding that drinking from a water bottle may actually be more harmful than drinking right from your tap. Takes a little adjusting, but the savings are worth it.
  
• Take public transportation instead of driving your vehicle.
• Cut back on brand names (generic acetaminophen is the same as Tylenol, lol). And Payless is not the devil, unless you're in those shoes for more than 4 hours, then it's hell.
  
• Stop smoking!!! That $5 a day habit + future medical expenses will save you a fortune.
• Give yourself a budget each week and take out exactly that much in cash - when you run out you are DONE. Do not allow yourself to use plastic - it's just TOO easy.

3. Find a side hustle. Maybe you DJ, promote parties, or just love expressing yourself in artistic ways - do what works for you. Be creative.

4. Stash away that emergency savings (3-6 months living expenses). You never know if your company may be undergoing layoffs as a result of this declining market. Never get too comfortable. Savings should be a minimum of 10% of your income (in addition to your retirement savings).

5. In the event of number four, make sure that your resume is up to date and that you are keeping your skills current. Be ahead of the competition!

6. I know this is a tough one ladies - but try doing your own hair a couple times/month. We all know how expensive the salon can be. However, maybe you can at least discover a Dominican salon - good deals.

7. Get rid of that gym membership and hit the pavement. Cardio is cardio.

Here are a few that are slightly more controversial:

1. Do not loan money to friends OR family unless you can afford to NEVER see it again.
2. Do not pick up the tab when dining with friends. If they can't afford it, leave them at home. Oh, and please avoid that drunken "Round of shots on me" scene by leaving your plastic at the crib.
   
3. If you can't afford the vacation/tv/computer in cash, then now is not the time to be jet-setting or stunting in Best Buy. Sorry boo. Got to get our money tight and get it right.
   

Peace, love, and prosperity buppies.

P.S. - I really want to start this savings strategy AFTER I buy a new LCD monitor for my computer. Lord show me the way.