Venus Rising

ProfileIssue: Scorpio 08 - The Money Issue

My Peace On Money

C.D. MoriartyIn October we had one of the most tumultuous months on Wall Street ever recorded. We are in uncharted territory as far as investing and government involvement. I have repeatedly heard, “What can we do?”

This is not the time to do anything drastic financially. Reviewing where your cash is held, investments are made and how you spend money are steps you can focus on to find some peace of mind. Pay attention to what you are doing and focus on what you can change. More than ever, this is a time to get back to basics. Here is how.

Back to Basics

The economy. The gas prices. The food prices. Every where we turn we are reminded that costs are rising. Salaries and wages are not rising to match our increasing financial needs. What to do? 

Get Back to Basics. Years ago there was a big push in the federal government to do zero based budgeting. This is still a standard in the accounting world on how to create spending in a department or corporation. Start your own zero based budgeting review. Evaluate from the bottom up your expenses and include only what you really need at this time of a tightening economy.

This is the time for you to think critically about what you are spending. You do not have to resign yourself to overspending. Nor do you have to set yourself up to suffer not having what you need in life. Begin to make new choices that are sustainable as the world changes around you. Looking at every expense critically will give you the information and initiation to make better spending decisions.

The words that come to mind as we all have to reevaluate our finances are from the first reader we saw in school: Stop! Look! Listen!

Stop!

Stop buying. Stop buying because the ad says “Buy one, get one free.” Or “No payments until 2009.”  Or “0% interest.” These terms of sale do not justify a purchase. They are marketing tools to help sell a product. Consider a purchase. Think if you really need this product or are only reacting to the product promotion? What do you have to spend? What you had planned to buy?

Stop before you sell your car and buy another one to save money on gas. This is not a simple equation. The average person looks and says…I will lower my monthly car payment. Or I will lower the price I spend on gas. However, your debt may be increased because you have a greater car loan. Your payments may extend out longer. And any gas savings may be offset by the larger long term expense. Buying outright with cash? You will still want to work in the price of depreciation into the car expense versus the gas savings. Gas is bound to go up, as we all have found out. But spending more on a hybrid may not do the financial trick you are hoping. First, do the math. All the math. Include depreciation, additional expenses, debt, interest, etc. Look at the monthly income you have available. Then decide.