wow. i know things are bad, but for ING to send everyone this letter assuring us that they're not threatened by the sub-prime loan crisis means that the average joe is deeply worried. which is something i have not yet experienced in my lifetime.
if you're like me, and a child of the 80's, this is the biggest financial crisis we have ever seen. it is scary time, mostly because it is hard to understand what is happening and how it affects our most personal interactions with money, both right now, and in the future. we want advice as to what to do with our money, how to take advantage of the market right now, how to ensure we will be able to afford our dreams in the future. ironically, that advice has been out there all along, and we didn't listen, because we always assumed that things would stay the same.
the trouble i think is that we grew up at a time when the economy was riding high and most of our money habits were probably formed in the 90's, when the idea of being financially prudent didn't occur to even the most risk-averse (uh, bear stearns?). consequently, the older, "conservative" ideas of cutting back, learning to save and watching your expenses, are both novel and terrifying. but they worked for our parents parents, and they'll work again for us, we just have to learn how to do them. as for now, that's the only advice i'd believe in.
i just revised my own financial tracking system, which i do in excel, to take into account some recent life changes. it looks pretty complicated, but does a whiz of a job allowing me to see my whole financial picture in one snapshot, and keeps track of savings and spending together. if you want a copy to start yourself, email me and i'll send it over.
Hi Dear. Your posts are fabulous. Very educational. Send me your excel template...i'll check it out!
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