As I write this, the stock market has just completed the single best day in its history. This follows the worst week in its history, in which the market lost approximately 20% of its value (depending on the indicator you use).
During the summer of 2007, my wife and I purchased our first home. We spent tons of time doing homework and we are still very happy with our purchase, but as first time home buyers, there were simply some things that we didn’t fully understand that fell through the cracks during the process.
After writing my piece yesterday on fear and the economic situation, a very eloquent reader named “Maggie” wrote to me:
I completely agree with your assessment on the economy, particularly if you’re young. There is no crisis that is well served by panic and I don’t think that the current economic situation is anywhere near as bad as the Great Depression.
Many workers in the United States receive their paychecks every two weeks - many federal and state employees are in this group. At the same time, most bills and payments that people make are paid on a monthly basis.
This creates an interesting situation.
Whenever I write about how I organize my life, I usually get several comments and emails from individuals who lament their lack of energy. “I get tired just reading that task list!” is a common thing that I hear.
I’m in the same boat.
Recently, I happened to be leafing through Elizabeth Warren’s worthwhile personal finance book, All Your Worth, when I stumbled across an interesting statement on page 244: “If things get really tight and you don’t have enough to cover all your expenses, pay the most important bills first.”