Was It Really a Black Monday?
The Financial Repercussions of The Stock Market's Black Monday
When the stock market fell this past Monday, reporters were throwing the words "Black Monday" around as though it was the beginning of the end of America's financial future. Is it really as dire as some have made it sound? Is it the Great Depression all over again? Here are some things to consider, and a few things you can do to protect yourself and your family...
It's Not Doomsday
First, understand that it is not the end of the world. The likelihood of a repeat of the Great Depression is slim to none. That being said, we might indeed be in for some hard times depending on how things go in the upcoming months.
No, we won't all be starving and homeless (today's unemployment rates are nowhere near what they were when Black Thursday struck) but we're going to have to tighten the belt. Here are some easy ways to do it.
Stop Squandering, Start Saving
Start tightening the belt now so you can accumulate a savings account equal to at least six months of your living expenses. That means those $4 lattes? No more. Put that $4 in the bank. The weekend evenings out? Start renting movies (you can get em for cheap if you join a program like Netflix) and staying in.
People clip coupons for a reason, and try cooking your meals rather than buying convenience foods. Even if cutting back only saves you $20 a week, that's $80 a month, or $960 a year. Over the course of two or three years, your savings will add up.
Out with the New, In with the Old
The recent "excess is best" attitude we've taken lately must change. That's the bottom line. The frugal living ways of the depression era generation can be learned from, and we should do that now. Even if we don't face any more financial drama in the coming months or years ahead, it's a sound way of living because, whether we like to admit it or not, the future is never certain.