"A penny saved is a penny earned"
"A penny saved is a penny earned." - Benjamin Franklin
The stock market is slowly rising thanks to the upcoming holiday season and Obama's push towards clean energy and a green economy. Yet many people are still wary of conditions surrounding the stock market.
According the an article written by the Washington Times, "It's hard, after all, to keep the faith in buy-and-hold after the market crashed harder than at any time since the Great Depression. It's hard to trust your financial adviser after Bernard Madoff stole billions from his clients. Most of all, it's hard for a generation that equated personal finance with investing in stocks to accept that the rules have changed."
Despite the negative impacts recession has on the job market along with the loss of investment in stock and 401(k)'s, there are a few who believe the recession may bring about positive change on our consumerism lifestyle. For instance,Tom Warschauer, finance professor at San Diego State University states, "Virtually every type of financial decision was being made in a kind of fairyland atmosphere, thinking, 'This will lead me to be better off,' when, in fact, that was never the case."
The recession has strengthened bonds within family members and neighborhood communities as more people spend time at home during holidays and the weekends. Furthermore, it has taught us to put more thought into how we spend our money. Thus, there has been an increase in the number of people who invest their money into savings. As we focus more on quality over quantity, we are able to decipher which items ought to be categorized as necessities rather than luxury items.
Other positive outcomes of the current economic situation as noted in the article are: "maximize your savings; limit your use of credit cards; keep a substantial emergency fund; know how much risk you can tolerate; diversify your investments; don't try to short-cut your way to wealth."
CBS also has some positive findings in regard to the recession:
- The share of people who carpooled to work rose to 10.7 percent, up from 10.4 percent in the previous year. Commuters who took public transportation increased to 5 percent, the highest in six years, with Washington, D.C., at the top.
- Women's average pay still lagged men's, but the gap has been narrowing. Women with full-time jobs made 77.9 percent of men's pay, up from 77.5 percent in 2007 and about 64 percent in 2000.
- More people have high school diplomas. Only two states, Texas and Mississippi, had at least one in five adults without high school diplomas. This is down from 17 states in 2000 and 37 in 1990.
CNN has provided on online calculator which determines how much money you have to save to reach your retirement goals.
Of course I am not recommending we stay in a recession forever. I hope the US will be able to move out of the recession by the end of this year. I am suggesting we try to make the best out of this current situation. We ought to take an unbiased look at the situation by considering both the negative and positive aspects of the recession.
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