Reading: How to prepare for a recession

How to prepare for a recession. (Move to Canada! Then turn around and blow all your extra loonies and toonies on super cheap American goods. Wait, that’s not on the list. Hmm.)

This paragraph from the NYT struck me, all the way down at the end of the story:

“We want people owning homes. But oftentimes, to be able to do so requires literacy when it comes to financial matters,” Mr Bush said. “And sometimes people just simply don’t know what they’re looking at and reading. And it can lead to personal financial crisis, and that personal financial crisis, if accumulated to too many folks, hurts our country.”

I agree. So I’m reading a lot about personal finance lately. It’s a mom thing, really — I look at those sweet cherubic little children of mine, and I think, “When I don’t feel like strangling them, I feel like providing for their future.” And seeing as I’ve never been formally educated in the matters of personal finance — no business degree for me, just Hard Knocks University — it only makes sense for me to turn it into an academic question, read a bunch of books on the matter, and reassure myself that the sky is not falling.

Working OK so far, I suppose.

January 22, 2008 | Filed Under check it out, neuroses

Comments

5 Responses to “Reading: How to prepare for a recession”

Bad Hippie on January 23rd, 2008 7:26 am

You know, getting a financial advisor is a good move. HWSRN and I are writers, and completely admit to not knowing much about money. So two years ago we hired a financial planner. Yes, we pay him a fee each year. But you know what? He’s started a Roth Minor IRA for The Beavis, an IRA for us, and has taken old 401Ks from past jobs, invested them in some crazy RAVA annuity thingie (see? Not good with money!) and actually created two retirement accounts that grow each quarter! And he manages our current 401Ks through our jobs, picking the companies to invest in, etc. Consequently, those are doing pretty good, too.

It’s an expense, yes. But we figure that this is something we couldn’t do on our own…or at least that we couldn’t do as well on our own. We are smart in a lot of ways, but having to learn everything about the markets, etc. to make smart investments isn’t going to happen. Having the financial planner really makes us feel better about the future, and forces us to save without the temptation of spending money instead!
Ty on January 23rd, 2008 10:08 am

Financial planning rules:

#1 Save first.
#2 Don’t get a mortgage with an ARM unless you understand your rate will go up and you plan to refinance at that point or move. Period.
#3 Call the credit card company every few months and ask them to lower your interest rate. Then ask for the customer service person’s supervisor because the CSP will tell you they can’t do it. THEIR SUPERVISOR CAN.
#4 Take advantage of 401Ks.
#5 The financial planner idea is a good one.
#6 Relax. You have a good head on your shoulders. Use your brain.
kelly on January 23rd, 2008 10:34 am

i wish the hard knocks university taught us more about this. you are a good mom, wife and woman..taking these steps and learning what you can is such a smart thing.
Megan on January 23rd, 2008 10:51 am

You may have come across these books already, but my husband (who reads personal finance books with a passion that mystifies me) has narrowed his favorites down to these:
- Millionaire Next Door
- The Only Investment Guide You’ll Ever Need
- The Wealthy Barber
- The Richest Man in Babylon
Good luck figuring it all out!
Jen on January 23rd, 2008 11:14 am

President Bush actually said that? That was the clearest, most sane thing I’ve ever heard from him!

Thanks for the post. It’s good to be reminded to save and prepare for the future.