Friday, March 14, 2008

Are you Scared of a Recession?

There has been a lot of talk lately about our economy slipping into a recession. From all the talk you might start to worry that we are heading for a repeat of the great depression. Lots of bleak terrible sounding data that can definately make you worry. So, are you scared of a recession?

I personally don't know what to make of all the talk. All I know is my fiance and I's personal situation and I can comment on what we are doing and why we aren't to worried about a recession.

My fiance and I both have fairly stable jobs. We don't feel disposable because we both hold jobs where they honestly need to hire more workers to get all the work done. Also, our work is required by the SEC. Thus, if we don't get our work done, the companies are going to be required to pay some hefty fees to the government. But you never know. We could be out of jobs tomorrow but we certainly hope not.

We have a nice emergency fund built up. It's not as high as we would like but well over 3 months worth of expenses. We will use some of that money to pay for our part of the closing costs for the purchase of our new home. But, we plan on putting some extra savings towards that account over the next couple months to boost it up.

Our retirement funds may not get a good return. However, we are both soo far away from retirement it's not even funny. We just started our careers and have at least 30 years before we could even think about early retirement. We have 40 years before a regular normal aged retirement. Therefore, we will keep funding our retirement at our current rates and hope for the best.

The only worry I have is with the purchase of our house. It's a big purchase. We did the math and have plenty of room in our budget for the monthly mortgage, insurance, and taxes. We also have plenty of room left over for savings. We just have to make sure we don't go crazy when we move in and buy a bunch of new furniture and items we feel we need while sacrificing savings. With our upcoming wedding, we will register for most of the stuff we feel we need. Hopefully we won't have to buy anything when we move in.

So what about you? Does all this talk about recession have you worried? What are you concerned about or why aren't you concerned? Is there anything you are doing to try to help yourself be in a better situation because you are scared of the recession? Or are you just continuing along with life with no fears?

1 comment:

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