As you know from time to time I do finance pieces on my blog. I have been a finance professional for 30 years. Of course I am another person on the web talking about money, so always trust your instincts and do your own research.
The markets are dropping again, Inflation is still high, Ukraine, and politics is ramping up for the midterm elections. It’s an anxiety filled season, oh and are you in Florida? Hurricane Ian created a lot of hardship and stress. So for the finance piece I’m not going to go on a long drawn out post about it. I’m going to give you some bullet points to navigate this, hopefully it helps.
Stock Market: It goes up and it goes down, it is a rollercoaster. The key is, you don’t get off a rollercoaster when its moving, you will get seriously injured or die. Same with the stock market. We are in an unstable period right now, the rollercoaster is moving. If you are in the market you stay, don’t sell. Stocks are fluid, this will level off be patient.
Inflation: Everything is more expensive and is going to remain expensive through AT LEAST the 1st quarter of 2023. So this winter is going to be rough. Energy costs are going to be very high, highest in recent memory is my best guess. You see the Ukraine war, Russia will use energy as leverage. They know Europe needs their gas and oil to heat their homes this winter. Less oil and gas = higher cost for everyone.
So how do you deal with this two negative outcomes? YOU STOCKPILE CASH. One less night out this month, make your coffee at home, tighter budget for Halloween… Whatever it is, you need to find money in your personal economy that you can shift. Remember this doesn’t have to be a permanent change, we are weathering a storm, or waiting for the ride to end so to speak. This bad economic time will pass. Believe it or not, I was alive the last time this happened in the 70’s and early 80’s.
Back then, we had so little gas in the U.S. depending on your license plate number you could only get gas on certain days. Now part of me wants to see that again, just to see how the younger generations deal, but I’m going off on a tangent…. Be more frugal NOW in October and pinch as much as you can off your budget and bank it. It’s going to be a long winter, in some places harsh but it will pass. The ride will end and whatever the new normal is we will deal with it.
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