I have read a ton of blog posts recently about things to do in a down market. So I am going to write about my ongoing plans too...
Income:
I work for an educational institution. My job is sort of stable but there are no guarantees. I want to keep up to date on training and learning new skills so If I end up looking for another job I will have the ability to do so at an increase or at least the same.
I try to make myself valuable to my current employer by not complaining and doing as much as possible around the office. I am not very popular as I am going out on Maternity leave. I try to make sure that all the bases are covered and I will still have a job when I get back. It is not easy.
I have been thinking about a second job but the numbers of hours in a day always seem to limit me. I am skilled at website design but I have no idea how to find clients that would hire me to do that. There are TONS of scams on the internet to get a web site built for $250.00. That is not a very large budget for a site that will represent you. I have looked at elance and the prices are really low for the amount of service needed. And you are competing with those over seas. I am a skeptic. BUT I am also still thinking about it I will let you know if I choose to make a leap of faith there.
Expenses:
Reduce Spending.
Being a gestational diabetic has been a very hard learning curve for me. I have found it is a little hard on my sugars to eat rice and beans. As my doctor put it skip the rice eat the cow. So Lunches have been expensive. My husband on the other hand wonderful man that he is has really done an outstanding job on the dinners front. He looks for bargains and keeps us in line there. I see it as my job to try and reduce my lunches out. I need to eat more meals from a brown bag and keep the sugar and the expense down.
I need to keep on getting out of debt. As of today I have paid down 28.39% of my debt. That is a lot of progress. Don"t be fooled it is also a lot of debt to go. It will take time to get out from under $30k of debt.
A couple of years ago the interest rates kept going up and a few points meant the difference between being able to pay the MINIMUM payments of being short. These days I am putting about $450 to principal in addition to paying off the minimum payments. The snowball works!!! I did carefully evaluate transfering balances - O% offers are not free, nor are reduced rate offers. Make sure you are going to save money in interest before you transfer. I did, so I accepted some decent offers. But even still I was not able to move all of my credit to the lowest amounts. Thus Card#2 is the latest focus. At 15.99% I am working to have it paid off by March. If I cant do that I will at least have it completed by this time next year. And then on to Card #3. Currently at 12.9%. It is actually funny because the fed rates are down somewhat I am better off in what interest is accruing on my cards. My plan for the long term. Get out of debt. I just no longer want this lifestyle of can I make the minimum payment this month. It makes me sick to my stomach that I cant go maternity shopping whenever I want because I need to watch every penny so carefully. I robbed yesterday from my life today. I will not continue to do that.
Retirement... I do have about 30 years left to go. Even at 41 I see myself working until 70. I don't believe Social Security will be around for me. I have to be relying on myself. What does that mean during this down turn??? Well...
1.) I am earning more stocks per share in my 403b plan.
2.) I need to roll over a retirement plan from my previous employer. This would purchase EVEN MORE shares at a lower rate. And then when the market rebounds in 10 years or so I will have a big gain.
I am concerned but not worried. Here is why... This is the first time in my life that I have EVER had a 403b plan. My employer contributes to it at a very reasonable rate. I am contributing nothing at all and I still have more money in the 403b then I have ever held in my life. (Keep in mind it is less then 10K) So I feel hope for the future. Once I am out of debt in 3-4 years I will change my contribution to 3% or more Depending on our finances at the time. Always evaluating. Always checking.
Saving and Investing:
Our emergency fund is fully funded. Phew big sigh. I am sure that the need to dip into it is coming though.
We also have $3500 for a down payment on a home. I really want to transfer that money out of my low interest savings to a money market fund. I am investigating cheep ways to transfer the money.
Insurance:
I believe in us as a married couple. I know that we can do it together. I have life insurance, Both long and short term disability, and health insurance. I carry car insurance, and we have renters insurance. We evaluate the plans and make sure they are current and fit our changing life styles. Open enrollment for health insurance is coming to my employer and it is time to evaluate it again. We will take a look at the costs for baby and mama & hubby to see what makes the most economic sense without jeopardizing our care.
Investments:
Once I am out of debt I would like to go and get my masters. I might start before I am out of debt but I question splitting my focus. I will evaluate after the baby comes.
I am looking forward to the times when I am no longer focused on saving every penny to debt and instead shopping for solid investing tactics.
Here are some links that discuss that topic...
http://www.ncnblog.com/2008/02/25/10-things-to-do-after-you-get-out-of-debt/
http://www.gatherlittlebylittle.com/2008/10/18/debt-to-investing/
Other things to do in tough times
1. Keep communication open with your spouse
2. Evaluate your resources. Each other - and your incomes, Could I get a second job now at 8 months prego??? Debatable
3. Do you really need it? is it a savings?
4. Pack a lunch - really.
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