Me, again.
How’s everyone doing out there? Anyone else patiently waiting for that guy to jump out and say, “Smile, you’re on Candid Camera!”? A new zoonotic disease that destroys modern civilization! Good one, haha!
I am fine.
And by “fine”, I mean “things-are-groovy-on-paper-but-I-hate-everything-and-everybody”. This is clearly going to be a great blog post. *sigh* And circumstances really are quite favorable here at LBYM headquarters. Everyone over 18 is as employed as they were previously. The government manages to distribute aid in indiscriminate and Kafkaesque ways. Thanks to various levels of sheltering in place, we don’t really do much (i.e. spend money). A national bakery chain is giving everyone more or less unlimited free coffee all summer which is terrific, but leaves me concerned about the company’s long-term viability. I randomly got a gift certificate from a favorite store which I, on brand, spent on something that cost exactly that amount and not a penny more. A local supermarket is running their Wednesday sushi special EVERY DAY OF THE WEEK. I fully expect that, sometime soon, I will pass “GO” and collect $200.
If you are struggling right now, and would trade places with me in a heartbeat, umm, can you let me know the number of things you are keeping alive at any one moment and what your health insurance plan is like so I can evaluate your offer? I will get back to you.
If you are fortunate enough to be in a similar position, with your Net Worth going in the right direction even now, you might be wondering, pencil poised in hand and ready to take notes, what my next savvy financial move is going to be. Lean in, my friend, it’s …
Yeah, cool, huh? Aren’t you glad right now you don’t pay to read this blog? With all this fabulous advice? By the way, just because I’m doing nothing doesn’t mean nothing is happening. And I really am doing nothing. I am not putting extra money in retirement accounts. I am not putting extra money in college savings accounts (is college still … a thing?). I am not diving into the booming second-hand bicycle business. I am not traveling to a now-postponed family reunion. If you find yourself living even further beneath your means these days, what’s still happening even when you’re doing nothing? Your emergency fund is growing.
And that is the absolute best thing to be happening in the midst of a pandemic, an emergency if ever there was one.
Even in normal times, cash is King. In uncertain, unpredictable times? Cash is King, Queen, Crown Prince, Sergeant of Arms, Master of the Horse, the Piper … possibly even the corgis. Cash, and specifically, USD-denominated cash, is everything in a crisis, especially one with no readily discernible end. When you don’t know what tomorrow will look like, your number one asset (ha) is easy access to a liquid, flexible, universally-accepted currency. Preferably lots of it. Trust me, no one ever looks back and thinks, Gee, I kinda wished I hadn’t saved so much money and just had it sitting there.
Having such access is so important, I might even be OK with you thinking about starting to shop for a low interest line of credit in case your emergency fund isn’t as healthy as you’d like it to be. OMG, THE WORLD HAS OFFICIALLY ENDED 😱.
So good news, folks. If you’ve been doing a whole lotta nothing these days, if you spend a lot of time just staring at the wall, or lying prostrate on the floor with a spatula in hand, I’m telling you—you NAILED it.
There’ll be plenty of time later—maybe, fingers crossed, 2023?—to set goals, make plans, look forward to the future, and follow rules, financial or otherwise.
Except the one about masks. Put your mask on now, dude.
What about paying down your mortgage during this time?
I don’t know your specific situation (do you mean paying it off entirely?), but I would lean toward no. If anything, I have counseled people to consider working with their mortgage company to change the terms so that you are paying less now and more later (say, tacking on payments at the end of the term). Not all forbearance options are created equal, so it depends on what your options are. Once you put funds toward your mortgage, you can’t (easily) get those back. A house is a pretty illiquid asset.
Thanks for the question!
Glad to hear I am doing the right thing! Nothing! Just wish I wasn’t SO bored! I do enjoy seeing my money actually stay in my bank account though! Check my banking app regularly just to smile at my balance!