As the economy continues its upheaval, the word thrifty seems to be on many people’s minds. Is it absolutely necessary to be thrifty in times of economic uncertainty? There are many schools of thought on the subject, and while at first glance, it may seem like the only economical choice, there is another way to look at it. Speculation is an age old practice, and in times like these, those that are willing to take risks may end up either losing their shirts, or making out like bandits.
While it only makes sense to apply some measure of thriftiness to your everyday spending, now may be the perfect time to start thinking about investments. For example, with the housing market downturn, there are thousands of properties that are now in foreclosure, or that are running short sales. If the property is in reasonably good condition, you may be able to pick up one and flip it as soon as the market stabilizes. Or, you can pick it up as a rental property, since this market is currently booming.
Instead of immediately hunkering down during an economic crisis, it makes sense to start thinking about opportunities that you could be purchasing. Those that are into investing on a serious level know that when the markets get tough and the shakier investors bail that there is real money to be made if you can hold out and make smart decisions. The key is learning how to make those smart decisions and taking calculated risks that can pay off in the future.
Granted, if you are not in a position to start making investments now, you may want to hold off. However, it is important to change up your mindset a bit and start looking at times of economic crisis in a different way. These are the times when fortunes can be made by the intrepid, and with care, it is possible to do quite well. Speculating is obviously not for everyone, but for those that are willing to take that risk, it can pay off handsomely.
So, how can you apply this to your everyday life? Instead of immediately clipping coupons and stopping all spending, think about funneling some of your unnecessary spending into other avenues. Take a look at the big picture financially and see where you could be making money instead of hanging on to it or throwing it out the window. With the help of a financial advisor, you could use this time as your own special turning point towards financial stability.
Being thrifty has a time and a place, but it doesn’t need to apply to your finances across the board. Take some time to consider what you could be doing with your money and take the necessary steps if you feel that you can bear the risk to perhaps get into investing or at least developing some secondary income streams that could provide you with more security in the future, as well as right now.
Photo Credits: 1
Originally posted 2008-10-22 05:02:39. Republished by Old Post Promoter
Related Posts -
Learning Basic Money Management Skills Whether economics is your idea of a great way to fight insomnia, or you just didn’t get the benefit of learning about money management early on, it is never to late to learn the basic skills of proper money management. We highly recommend taking a brief course on finance if...... -
Finding The Right Financial Balance If you are ready to get serious about managing your finances, it is vital to find that perfect financial balance that will help you reach your goals in less time. In many cases, simply finding that balance can make all the difference in how you view money and how well...... -
Keeping Your Money Safe in Economic Turmoil While many are reacting to the news of bank failures and bailouts badly, there are a few people that are taking the time to assess the situation and figure out what they can do to stay on top, and keep their money safe. Panic is an ugly thing, especially when...... -
What You Need to Know Before Buying a Foreclosed Property As housing prices keep falling, many people are considering getting into the property market like never before. If you are looking for an investment property, now is certainly the time to strongly consider your options. However, before you get in over your head, there are a few things you need...... -
Learning the Basics of Money Management For many people, the prospect of money management is just too much to handle. Nobody really enjoys being a bean counter, and if you're spending too much and having a good time doing it, money management may be the farthest thing from your mind. However, given the state of the......
Related Websites - Midweek Roundup: Davy Crockett Edition "We have the right as individuals to give away as much of our own money as we please in charity; but as members of Congress we have no right to appropriate a dollar of the public money." - Davy Crockett My what a difference a couple hundred years makes! Imagine......
- Antique Postage Stamps Stamps -> Worldwide -> Postal History When it comes to collecting stamps, most collectors dream of being able to find the perfect antique postage stamps. By far, these are usually the ones that are the most valuable and in many cases, they are the most visually interesting. If you are......
-
How Expense Ratio Affects Long-Term Performance? What is an expense ratio? It is a fee that mutual fund companies subtract from your investments each year for their services. Can that small fee have such a big impact? Yes, it's possible for high expense ratio to eat up 50% of your gain -- given enough time, high...... - Should You Prepay Your Mortgage In This Economy? I wrote about Dave Ramsey’s Baby Step 6: Pay Off Home Early about a year ago, and I'd like to revisit the question of "Should you pay off your mortgage early?" in light of today's economic crisis. In the Dave Ramsey article, I examined both the advantages and disadvantages of......
-
Could Low Wii Supply Drive Up Demand for Its Competitors? The Wii is, of course, the hot-ticket item this Christmas, just like last year. And once again, there aren't enough to go around. Micah and I frequently watch G4, the "geek" network. During one of their news segments, G4 brought in some people to discuss the Wii supply and......
Categories:
Money, Personal Finance, saving
Tags:
1 comment so far ↓
I think it’s great to be thrifty–but we all need a certain amount of wisdom and discernment as to when to observe austere thriftiness; because there are times when we really need to spend and we have to be open and adjustable to that.
It all depends on our priorities… sometimes we’re absolutely thrifty over certain necessities like food–which personally I find rather weird. I really think more than being thrifty, we should be healthy about our food purchases. There’s a difference.
I think thriftiness shouldn’t be viewed on a micro-scale level, instead it should be seen as a macro-scale issue. The micro-scale perspective is important only because we only get to the macro-scale with the daily grind of the micro decisions made.
Cheers!
Leave a Comment