Image via WikipediaFinancial IQ Philippines Quick Hit(s):
In order to properly secure our future, we need to have a "Saver" and "Investor" mindset. The earlier we can break away from the "Spender" mindset, the better it would be for ourselves and our family.
With this latest recession, I was caught off guard. I'd been living in Florida, where unemployment rates were low and the housing market was off the charts. My job was stable and most people I knew had no financial worries. But then the housing market crashed and the layoffs started. I gained an entirely new perspective having lived through the most recent recession.
I view my house as a liability
While a home that you own and can rent out is an asset, most houses are liabilities. I never realized how much of a financial burden a house could be until my friends started losing their homes. Because of the recession, I've picked up the pace in terms of paying off our mortgage. According to USA Today, a lot of people are crunching numbers to figure out how they can pay off their loan in 8 years, using a Quicken Loans product called Yourgage.
I don't decline extra work
When I was living in Indiana during a local economic depression, I was always motivated to work. I could not pass up an opportunity to earn income doing what I love when so many people couldn't find a job. Seeing people living in humble circumstances then and now keeps me focused on productivity. In contrast, during the economic boom I just went to my 40-hour job and took it easy the rest of the time.
I question my own purchases
When the economy was booming in Florida 9 or 10 years ago, I never thought twice about buying things I wanted. I may have questioned my sons' purchases, but rarely my own. Now I think before purchasing a new outfit or even buying treats at the grocery store. I track my spending and consult my budget.
I don't count on a job
It's not wise to put all your money into one investment vehicle or to depend on one source of income. Because of the recession, I've thought about diversifying my streams of income. I find creative ways to make money such as being a secret shopper and participating in focus groups through marketing firms.
I'm not embarrassed to scrimp or forage
Before the recession, I felt as though people gave me a strange look if I pulled out my coupon organizer. Now they expect people to use coupons. I also forage for elderberries to use for pies and jellies. I'd never go so far as to be a "freegan" who salvages discarded food in dumpsters, but I don't look down on those who do. I never would have had the guts to collect berries before the recession, but now I look forward to elderberry-picking season.
The recession has not made me bitter or cynical, but it has made me appreciate and respect money. I'm more thankful for my family and the work that I'm given. I take better care of my things so they last longer.
In the end, the recession has made me a better, more thrifty person.
http://finance.yahoo.com/news/First-Person-How-Recession-ac-4133652592.html?x=0
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