Comments on: Don’t Save Your Money

By: Splendor

Splendor — Sun, 24 May 2009 15:01:40 +0000

Agreed.

By: Mike

Mike — Sun, 15 Mar 2009 16:27:55 +0000

It is always smart to put your money where the majority of the people don’t want to. Today nobody wants to buy stocks, so it is a good time to buy stocks. Few want to buy real estate, so it is a good time to buy a house.

In contract, five years ago everyone wanted to buy stocks, everyone wanted to trade up to a bigger house. The smart thing to do then would have been to SELL stocks, SELL your house and downsize, and put the cash in the bank.

By: thomas

thomas — Sat, 14 Mar 2009 05:39:54 +0000

We should have debt gladiators who battle it out till the death. Those who win get their debt erased.

Are you not entertained!?!?!?!

By: JC

JC — Thu, 12 Mar 2009 07:11:34 +0000

Hmm one thing to also note is that a lot of stores are having a bunch of really good deals right now because of the downturn of the economy. Not a bad time to buy that tv you really wanted or whatnot.

Also I think the govt is paying new homeowners 8k? Not a bad time to buy real estate.

By: Diane

Diane — Thu, 12 Mar 2009 05:42:50 +0000

IF your debt is paid, AND you’ve got an adequate emergency fund AND it is something you need and planned to buy AND it is a good deal, then YES I do agree this is a good time to buy. Lots of ifs there…

I will not spend a lot of money on ‘wants’ at the moment – it would have to be a totally outstanding deal, and I just haven’t found anything that wonderful.

We’re looking to move in about a year when my younger son graduates from high school. I wish we were ready now, as there are many deals on houses in the areas we’re interested in, but I won’t pull him out of his school for his Senior year.

I’m hoping there will still be good deals in real estate next year…

By: Jim

Jim — Wed, 11 Mar 2009 19:30:26 +0000

IF you’ve got an adequate emergency fund then YES I agree that now is a great time to be buying certain things cause of the deals and now is also a great time to invest in the market or real estate. Jim touched on the emergency fund but I think thats a point to be emphasized.

By: Patrick

Patrick — Wed, 11 Mar 2009 19:08:07 +0000

Now is the time to invest in stocks. Even though interest rates are low, it’s a perfect time to take advantage of the record low stock prices. It seems almost too stupid to leave you money in banks right now with interest rates so low.

By: Jessica

Jessica — Wed, 11 Mar 2009 18:37:53 +0000

I think that the dramatic increase in savings in the past months shows exactly how much people have been neglecting their finances. Those of us that have been steadily plodding along… paying ourselves first, paying off debt and in general being frugal aren’t having to change a thing about how we spend or save our money. It is unfortunate that many people are learning these lessons the hard way.

By: Rap Music

Rap Music — Wed, 11 Mar 2009 17:58:08 +0000

Jim, I actually have to agree with you on this one. If you’ve got your emergency fund well in place and have some extra money, it’s definitely time to spend and enjoy the extra money.

However, in my circumstances, as much as I want to take advantage of my extra savings which are pretty solid, I’m holding off because I know that I will have a span of 4-6 months without work and possibly no UI, as I’m going to be student teaching. To top it off, my wife is expecting in July, so I really need much more than just my emergency fund.

I’m bummed though because I could really use a new car.

By: Dana

Dana — Wed, 11 Mar 2009 16:38:38 +0000

It’s one thing to spend money that you don’t have, but it’s another to hoard it just because that’s what everyone else is doing. If one’s finances are secure, then there’s no reason why they shouldn’t spend money, especially when the deals are good. Given these people are in the minority nowadays, that should naturally drive a lot of businesses under as is. No need to exacerbate the problem by not spending when one needs to, and is able to.

By: BobV

BobV — Wed, 11 Mar 2009 15:56:13 +0000

I would agree up to a point with spending. It certainly is a time where bargains can be found. But as a previous commentator alluded to: we are in this mess because people spent more then they could afford. Living within your means, having that emergency fund behind you, and the spending the money you HAVE is the best solution. Unfortunately, I suspect we will see more and more debt being acquired by individuals as the economy continues to falter.

By: Chuck

Chuck — Wed, 11 Mar 2009 15:00:07 +0000

As a devil’s advocate post, it sounds pretty reasonable. I’ve been thinking about taking advantage of depressed housing prices by buying a new house. Unfortunately (and fortunately) the prices in my area are not depressed all that much.

If you have been saving, and you can use the economic disaster to make a deal, it makes sense to do it.

By: Dave

Dave — Wed, 11 Mar 2009 13:39:31 +0000

I don’t think we got into this mess by not saving, we got into this mess because people spent WAY more money than they had, and bought things they couldn’t afford.

By: Nate @ Debt-free Scholar

Nate @ Debt-free Scholar — Wed, 11 Mar 2009 13:14:43 +0000

How did we get into this depression? Not saving. How will we get out of this depression? Not saving!? Isn’t that the definition of insanity: Doing the same thing and expecting a different result.

Thanks,
Nate