Monday, January 26, 2009
The upside of a down economy.
Businesses are closing and your 401K (if you had one) has tanked. What is there to be positive about? Well for one...there is a lot on sale!!! Yep there sure is, so if you managed your money well before this...things could go your way. If you are graduating from college and need a car, they are at rock bottom prices because people who can't make payments are practically giving them away...check out craigslist, your local adds and bank repos. Need a home...you can get one for practically a steal...there is one down the street from me for less than half price (it sold for 370 new and it's now down to 159!!!). Oh you are unemployed? Sad but guess what you have what no one else does. Time. You have time to take that vacation you haven't had time to take, and now you can take it for a third of the price. And you are wasting your time looking for a job because there aren't any in your field. So reinvent yourself...what talent do you have, what degree have you always wanted to get? Now is the time to do it. So you have credit card debt, a second home that you couldn't sell, or an equity loan? Banks are terrified they won't get money from you and you will go into foreclosure or bankruptcy...this is the best time to renegotiate your interest rate and loan payment...just mention some coercive problems you have and you might get a whole new attitude from your bank. Ok so you are 40 and you haven't invested anything....well guess what..everything at the DOW is on sale. That's right, you can buy more shares for less money, what that means is when it comes back up (and it will) you will have made up for some of those years you forgot to invest. Ok so maybe you are not rolling in extra dough, and on top of that you are getting ready to retire, that RV or Boat you always wanted, well now is the time to get it (used of course).