Monday, August 27, 2012

I don't want to overshare on this blog. However, I know there are single moms out there who dream of building a tiny house of their own, and families that dream about moving to farms or the beach but believe it's impossible -- why shouldn't I write about the money? What if these kinds of dreams are attainable, but people have the belief that they're not?


 It wasn't that long ago that I was driving across the country with 3 babies & all of our clothes in my beat-up old minivan, with no job and no prospects, crashing with my parents and applying for free school lunch for my oldest.

Seriously.

I'm also fully aware, given my own experience, that your entire life (including financial status) can unexpectedly change within a month. For better or worse. And sometimes the best laid plans aren't worth squat.

My willingness to take risks has suddenly increased despite the fact that it appears to be a bad time to take risks. I am not sure, but I think it's a combination of these factors:

#1. Hoarding a pile of cash in your savings account might not be the best use of your money. (Beyond having a safety net for car repairs or insert disaster here.) The worse inflation gets, the less your money is worth, and if things really crash and burn and a loaf of bread costs $50 - that savings account won't be your savior.
#2. Being debt-free on a small house is an excellent idea.
#3. Owning dirt is an excellent idea. So you have the ability to grow food if/when the economy finally starts the death rattle.
#4. You can't take your money with you when you die, and you can't leave it to your kids either because the government will take a huge chunk of it in the form of inheritance taxes.

{If you're not feeling a sense of impending economic doom, read pretty much any news report on the European financial crisis and this essay. It will help move you forward.}

So - we're in the worst economy in a century. What should we do? Or more to the point: What are you willing to do? Most of us still have choices unless we are slaves to enormous debts, sitting in a prison cell, or dead.

Right now there is land on my local MLS for sale for less than $15k. Beach property has cratered and there are deals to be had, if the beach and ocean fishing are more your thing. Real estate is the cheapest it's been since I was in high school.

Next: Recognizing Your Options...
Posted by Katy On 8:48 AM 6 comments

6 comments :

  1. Hi Katie,

    I think more people should talk about money. I love hearing about your adventures and "risk taking".

    ReplyDelete
  2. Money, why not talk about it. Sounds like you have been giving it some thought and I would love to hear more of your opinions!
    dee dee

    ReplyDelete
  3. I feel more *women* should talk about money! I know my heart rate accelerates everytime I have to do anything regarding finances, and I never feel like I understand what's going on or what's a good choice. And Suze Orman's personality just makes me want to punch someone (although I find her books and newspaper columns much less irritating). I have an absolute boatload of debt (credit cards, personal loans, 401k loans, car loans) and feel like I'll never be able to accomplish anything financial. (Notice mortage isn't in the mix ... but neither are student loans!) So any advice you feel like giving, I'd be more than happy to receive.

    ReplyDelete
  4. whoa that's a lot of loans! (I'm not even sure what a 401k loan is, probably because I never had a 401k before 2010, ha)

    Dave Ramsey is all the rage as far as paying off credit card debts, but if I were you I would unload everything I could, starting with the car.

    If that's not an option than getting another job might help. I am not a Dave Ramsey expert - but I have a couple more posts coming.

    ReplyDelete
  5. mollysusie, I'm a firm believer in Dave Ramsey and his "debt snowball." His program is simple and it works. Sell whatever it is you don't need, downgrade the car, make a budget, and pay down those loans! http://www.daveramsey.com/article/get-out-of-debt-with-the-debt-snowball-plan/

    ReplyDelete
  6. I hear you on the real estate prices. There are several places I'd like to buy, but we just can't seem to make the leap. Two of the places I dream of owning have had real estate dip by 30% or more. I still have a mortgage on my house, though, and I need to pay that off, first, I think.

    ReplyDelete

Welcome to my three ring circus. Cake? Tequila? Pardon me while I cut this lumber and yell at my kids for the 100th time --

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For many years I was a mechanical engineer by day, a house renovator by night, and a single mom. I previously built a tiny house on Tybee Island that I sold in 2015. Then I lost my day job, met Prince Charming, and now work full time demolishing (fixing) his lake house. ;) Stop by for the house stuff, stay for the never-ending disasters, pianos falling out of the sky, floods, threats of financial ruin, & panic attacks. It's like house flipping meets the zombie apocalypse! with lots of kids!

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