Sunday, March 04, 2007

Stock Market Crash and Opportunities

I'm not a financial guru. If I was, I wouldn't be having the financial troubles I am right now. I personally don't have a horrible debt problem. I only have 3 lines of credit that are not over $2000 (I've kept them at that level so I won't get into too much trouble). Of course, those are maxed out at the moment. Plus, I have my student loans to pay off, but I see that as an investment; maybe once I have my degree I'll have a chance at a higher income.

Have I been good about saving money? Oh no! I've made a lot of mistakes in that regard. I've been with my company for 8 years and I didn't ever sign up for the 401k.
Major opportunity loss there. I have a money market savings account, that I don't put any money into. I also own some stocks. I have one of those accounts that you can pay as much money as you can afford into and it disperses it throughout your portfolio. I haven't been putting any money into that either.

After the stock market fiasco last week, I checked my portfolio, and ya, I lost some of the money I did have invested. But it wasn't much and it didn't hurt me financially. Right now I'm looking at this as an opportunity to beef up my portfolio. I have some ideas in mind to find a little money here and there to add to my money market account and my portfolio so that I can start on the road to having a little nest egg, or at least emergency funds.
  • Take the money I was spending on cigarettes (haven't completely quit yet; that's a whole other post) and disperse that throughout my portfolio each month. ($80)
  • Once I'm enrolled in school full-time (hopefully this week), I'll apply for a deferment on my student loan payments and write that check out to my money market account each month ($295 at 4.48%)
Of course this all depends on how much money we will have to spend on daycare and on how much our rent will go up when we have to move to a two bedroom apartment.

I still have time, if I am aggressive, to get to a point that I am completely out of debt and have some money left over to be comfortable. I really don't want to be working full-time for the next 30 years, or even the next 10. I'd like to be able to gain an income, even if it's small, through my hobbies, be able to spend time with my family, and possibly travel.
I'd like to do a lot of things, but I just need to
do it, rather than always make plans and not follow through.

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