A Silver Lining To The Dark Financial Cloud

by golbguru on November 16, 2008

I bet this whole financial mess has made everyone of you open your eyes and question your wants, question your income, question your money management (or the lack of it), question your expenses, question your investment strategies, question your job security, question your $10-per-workday lunches, question your credit card statements, question your insurance coverages ….. sort of made you question your attitude towards money.

For those of you who still have your jobs, I bet you feel fortunate (and generally crib less about being less paid, etc.) - and I bet you are putting in extra efforts to make sure that someone higher up notices your hard work before you get into the to-be-laid-off list.

It has made people question their governments, and governments question their respective policies.

On my part, I have convinced at least half a dozen young people (close friends and relatives) to open their minds about saving more and/or investing in the stock market (on the argument that it’s a good time to buy stocks, develop good money saving habits, etc.). It’s a happy feeling (almost a proud feeling) when these guys and gals discuss interest rates, stocks, ETFs, and portfolio diversification over lunches and other casual meetings.

Of course there is much suffering and stress, but hopefully most of us will come out of it with several lessons for life. Hopefully, adversity will bring out the best of our efficiency and adaptability.

As it is, we have to read/hear bad news everyday … just thought I should throw in a pinch of positive out there.

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{ 18 comments }

1 stidmama 11.17.08 at 4:53 pm

Yes. It is NOT all bad news… this is a time of opportunity as well.

Still, for many people — especially people who don’t have the years to wait out this “market correction” — this is a very difficult time, as their incomes and savings not only don’t keep up with inflation… they are decreasing. I hope that sufficient support will come from the people who still have enough that we can avoid the complete disasters that our world faced in the 1930s. We are already seeing more homeless and under-employed people, though.

I wonder, if the lessons that are being (re)learned will have any staying power? After all, there were many protections and procedures put into place 70+ years ago, but they were gradually dismantled over the last 20 years, in an orgy of greed and profit-taking. Can we be more balanced in our money-management in the future? I hope so.

2 Super Saver 11.18.08 at 5:21 pm

Golbguru,

If this recession/depression converts everyone to sensible personal financial habits, there will not longer be a need for PF blogs :-) I wonder if the number of frugal living blogs is grown ?

3 stocks 11.19.08 at 6:24 pm

From the past few months of economic turmoil, I’ve learned to think long-term, and adjusting my portfolio as such.. instead of the get rich quick schemes.

4 Vincent Scordo 11.21.08 at 11:27 am

Hi,

Nice post, deep thinking is a good thing and something that most Americans spend little time doing (whether it’s the market and savings or food and politics).

Thomas Kuhn, who is a famous philosopher of science, coined the term “paradigm shift” and we’re going through such a shift (in terms of finance and personal spending habits) currently - allbeit the very beginning of the shift or change. Paradigm shift don’t occur very often, but when they do they bring about pretty big change (think about Einstein and how we all believed in Newton before the theory of relativity).

http://www.scordo.com/blog/blog - practical living blog

5 serviced offices 11.22.08 at 4:12 am

One thing I’ve learnt this most difficult period(recession) financially is to plan as if everyday will be the last day at work and income. I started by setting up a savings A-plan. Such post helps reminds a lot of people that the worse is yet to come. Thanks Golg

6 MoneyNing 11.23.08 at 11:29 am

Way off topic but OMG you are back :) Glad to see it!

7 Chris 11.24.08 at 8:12 pm

Hopefully many people are doing as you have and are spreading the word. To me, education is really what has been lacking–no one learns in school about budgeting or what it means to save for a rainy day. If nothing else good comes out of the current recession, at least some great pf blogs will have created some good content for the people who really do want to improve their financial situation. =)

8 rayn 11.25.08 at 6:48 pm

I agree with you. Things may not look so good now if we take a look at whats happening around us. But the real battle for survival starts within ourselves.. To be more objective about it, is despite the financial crisis we are experiencing, there are still lots of people who are making lots of money because of this global crisis. That goes to show that our situation is not hopeless. We should not stop our minds from finding great ways to take advantage of this situation. There is something good that comes in every adversity.. It’s there at the bottom of it. As for me, I would like to believe it and try to find it than be eaten alive by this financial mess without trying….

9 Diana Patterson 12.01.08 at 2:00 am

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Diana

10 serviced offices 12.01.08 at 12:17 pm

@Diana, If you want to ask for such opportunity - please send an email to the webmaster directlt rather that leavint it as a comment on a post on a site.

11 savings accounts 12.02.08 at 6:30 am

I do agree with you “serviced”. The comment box is not a place to ask for links, It’s a place to leave valuable comments for both other site visitors and the site owner. Thanks

12 Finance Frenzy 12.05.08 at 6:42 am

It is great to hear that you are spreading the word about the need to save. I think so many people have been caught with their hands in the cookie jar. These are desperate times, and I have also been feeling the pinch from my work. We’ve gone through several small layoffs and it is almost a week to week basis as to whether or not I will keep my job. I’m trying to convince my family and friends the importance of investing and saving well.

I don’t believe that the government is entirely to blame for what we have gotten ourselves into. Because of our bad judgment about credit and our need to own what we can’t afford, I think we got ourselves into this mess.

13 StockTradingToGo.com 12.07.08 at 2:16 pm

Saving is a critical part of life and it is unfortunate more Americans dont take part in it. I believe everything that has been happening lately is very good for this purpose though as it forces Americans to step up to plate and rethink their every day finances.

14 money funk 12.08.08 at 1:28 pm

Just as I feel the same about Christmas and the ‘Economic Crisis’. Great thoughts on your part!

15 make money from home 12.18.08 at 5:02 am

I think you have to remain positive about the financial situation, make good decisions with your money and plan long term. If you are struggling to make money think of different ways to survive if you are uncertain about your job then make sure you have back up plans

16 Forex Advice 01.12.09 at 1:09 pm

I’ll tell you something in “secret” :-) On my web site I’m advertising two forex brokers. Some of my readers sending me feedback and there they share that even the financial situation, they make big hits with every day changes on the currency market. They also saying that: “it’s important to catch the wave and the most important thing to do that is the INFORMATION - choose the right Forex Broker that gives you the earliest news and the best advices.” I’m absolutely agree.

17 Loyd Ford 01.14.09 at 9:09 am

You are right! Question everything. Want to improve your life almost immediately? Sit down and go over your spending for the last three months.

Find out where your money is going. See what you can reduce or cut and put that money in money market or high interest savings. Seek other ways to earn passive revenue and reduce cost. It will pay over the long-term. Remember: Money is not saved unless it goes from your checking to savings.

Loyd Ford
http://www.STICKYASSET.com/blog

18 Moneyedup 07.30.10 at 7:44 pm

I’m glad to hear that you are helping young people think more about their money, and learn how to save or invest it. It is integral that youth are educated about how to manage their money, and this is not something that is always taught in school.

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