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The Economy and Dimples

Craziness.

Ri-damn-diculousness.

Straight bull.......


Those are my thoughts on the current state of the economy. I could go further but I don't want to. I am economic crisis'd. I have been on the net searching here and there trying to understand what exactly is going on and how all this may affect me. I have been searching and there doesn't seem to be a positive out look on what's going on and it doesn't look like it is going to get better any time soon. It may actually get worse.

My 401K has decreased by $3000+ in the last 2 months. One day last week, I lost $1000 overnight. That was too much for me. So after doing some research and talking to a financial advisor I decided to move what was left in my account into a money market fund. Prior to that I had 40% in aggressive and 60% in growth. Since rebalancing my account on Monday it has actually gained $50. Now I know some folks aren't going to agree with my decision but I felt it was the best thing for my situation. I worked hard for that money and I don't like seeing it being basically depleted because some stupid rich CEOs and their croonies did not know how to run their business. I feel "safer" with my decision.

I don't believe the current economic situation will get better any time soon. Actually I believe it will be getting a whole lot worse. Especially when it seems to have had a domino affect and other countries are feeling the same chaos. Everyone except for Iraq of course. Hmmmm let me not go there. Don't need to start my Saturday off on a pissed off note.

Along with the change to my retirement account, I have made some changes to my spending, budget, and financial plan. I was going to put a hold on buying a house but I am rethinking that decision. I think now (within the next year or so) is the best time to buy a house (one that I can AFFORD) because I will get more house for my money. I am seeing 3/2's with a square footage of 1500+ going for as low as $125K. And these are beautiful houses in great locations. With my new salary and great credit (coming soon), I should be able to get a nice house with an affordable monthly payment.

Anyways I gotta go get ready and head out. My mom called me late last night to task me with some shopping to do for her at Ikea. Just wanted to drop in and say hey. I'll post more about my financial plans later today. I'll be posting more regularly also. I finally got myself on a schedule and life is not so hectic anymore. Let's pray it stays that way.

Ciao

Comments

SavingDiva said…
Good luck with the home purchase. Are you going to save up for a dp or just use your ef?
Dimples said…
@ saving diva

I am using majority of my ef to pay off my credit cards. I'll have all paid up by the end of the year. Once that is taken care of then I will replenish my ef. I will be able to save about $1700 a month once I pay off my credit cards. That coupled with my tax refund I should be able to replenish my ef and save enough for a down payment. I qualify for a first time home buyer loan program which only requires a down payment of 3%. I am looking at homes around $150K or less so that is at most $4500.
Anonymous said…
You're looking for homes in the same range as me, just in a different area of the country. I hope everything goes well for you!

So far as your investments - hey, you did what you were comfortable with. You have a little one - you can't afford to not be able to sleep at night!

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