Investing During a Recession

Ahhhh…the recession. We are living in tough times right now. People losing their jobs, stock market is doing ridiculously bad, housing in a downward spiral—what’s a young investor to do? During a down time like this, it is actually an optimal time to learn as much as you can about investing. Bad times don’t last forever, and as things slowly creep back up to normal (whether it’s three months or three years), we can equip ourselves with top knowledge that will allow us to make the best investments for our future.

Investopedia.com is a top educational finance site and one can seek expert advice from money gurus such as Susie Orman, David Ramsey, Robert Kiosaki and even from Norman Steisel, Deputy Mayor of NYC. In fact, Norman Steisel is the first Deputy Mayor of New York. Advice from this guy is valued because he oversaw the major overhaul in the city’s budget and has been instrumental in major financial decisions made for the city. Norman Steisel Deputy Mayor of New York is just one example of someone that may hold the key to financial knowledge. The underlying point is this: get expert advice, in combination with logical thinking and you can put yourself in a good place when it is time to invest. More to come on this topic…

Fantasia's Forclosure: Recession or Bad Habits?

Word on the streets is that Fantasia Burrino has foreclosed on "one" of her homes (the million dollar one in North Carolina). Allegedly, the signs are up and the home will be auctioned off soon. I'm a little confused about something: how did she owe $58,000 of taxes with $1 Million home? I'm no financial expert, but why on earth would you purchase a large home with NO money and a crap load of debt?!?! Come on Fantasia! First, I'm mad about the cost of living crisis here. What happened to the good old days when you purchased a home with cash--and it was yours to keep (with no mortgage)? I do realize that there are numerous social and economic factors that have contributed to this housing foolishness--but people should be a tad bit smarter. Even when you buy a home--it's not YOURS if you are still paying on it. The bank owns it! So besides the extra space and the "tax breaks" that you get from owning--you are essentially renting it. Well--I guess it helps to build credit--the same credit that could potentially ruin your financial stability if you make one slip up. Nevertheless, I hope Fantasia learned a simple and valuable lesson: don't get what you can't afford. If you're not making over $1 million a year, why buy multiple homes for that price? Sounds like lack of knowledge, terrible financial advising and bad habits to me...

With the economy in a wreck, everyone seems to be taking a hit. People are losing jobs, homes, retirement funds and their patience. The good thing about a suffering economy is that it forces people to become humble and appreciate each others as opposed to material goods. How much of this are we to blame though? Really--we all had a part in this whole big mess (although everyone is quick to blame everyone else for their financial troubles). When it boils down to it, the only person responsible for your bank account is YOU. Granted, there is a class division--but I've always believed in "working with what you got." If you can only afford a trailer park home as opposed to a luxury mansion, enjoy the heck out of your trailer! Work towards that mansion...but appreciate what you have. Above all, live within your means.

P.S. I love Fantasia's music--and I really wish her well with her financial troubles. Like everything else that is cyclical, this soon shall pass and people will be on their feet again.