Financial Friday - Ramblings

Today I am going to hit numerous and varied topics - so go with my ramblings so I can clear my mind and get back to the post on credit! Regarding the current economic situation I am going to link to some articles - from Marketplace and CNN Money.

First, the financial picture this week is more of the same. Volatility, uncertainty, low consumer confidence, layoffs, more store closings, pension concerns are a few of the issues facing us.

The basic principles still apply - start saving now (especially with the market so low), Time is on your side. Make wise decisions with your money - give up the impulse buys and don't be drawn in by the marketing, the best things in life are free - stop think what is your favorite childhood memory? I will wager it isn't something you received but something you did with someone. Remember that when you start to pull out your wallet.

Next, I found a comment on the blog that I want to respond do. Here is the question:
Josh said...
My girlfriend is in pharmacy school and is receiving student loans. Her loan covers her tuition and gives her about $1,200.00 every quarter. What could she do with her money that would benefit her after pharmacy school?

Josh, thanks for the question. There are a few factors to consider. Is there any chance she will need any of the money sooner? If so, put that portion in a savings account hopefully returning some interest - so she can get to it in an emergency. Next, depending on how many years she has until she graduates - I would think about keeping it safe - she could put it in a CD that may secure a higher interest rate than the savings account - but not take on any additional risk. If she is not going to need the money for 5 years or longer she could look into a conservative mutual fund - something that has a mix of stocks and bonds. Many firms offer asset allocation funds that go from lower risk to higher risk. The more stock in the fund the more risk you assume. So she could look at a fund that has 20 -40% stock and the rest in bonds - if she wants to assume more risk and have the opportunity for a higher return. As always, check with a financial professional prior to making any decisions. Smart about Money is a good unbiased educational resource.

Lastly, I can not encourage you enough to really look at your values and where you place your time and money. Our family had a tragic loss 5 months ago - my cousin Joe was 34 years old and killed in an automobile/motorcycle accident. He had his helmet on, had the right of way and the person turned right in front of him. The driver was charged with vehicular manslaughter yesterday. This whole situation is tragic. You don't know what is going to happen from one second to the next - so spend time with the people you love, be kind, give back, laugh, learn, have fun, embrace the world around you and realize that money and things can never replace the time and energy you give to others. Have a safe and awe inspiring day!

Stay tuned........