RE: Economic situation, Should I be worried?

[Roy4President]

I am pretty much your typical college senior. I have a few school loans, but nothing unreasonable. I don't use any credit cards, nor do I have credit card debt. I don't even own a car (by choice). I have solid job offers for when I graduate. I handle my money very frugally. However, the more and more I read about this (and attempt to understand), I become very worried.


Can someone explain how this economic situation will affect me?
How I can go about making solid decisions to avoid this whole mess?

 

[triplehorn]

In reply to:

---

---

 

[Macanudo]

Dude, this is the time to be 30 or 40 years from retirement. Sock as much away now in investments while the prices are low and ride it out. Why all the stress about the market when you have a crap load of time?

 

[zzzz]

It's depressing stock prices and housing prices. So if you are fast out of the gate in your career, and don't spend frivolously or take on unnecessary debt, you'll probably be able to invest and buy a home just as things are beginning to move forward again. The fact you're even considering these things puts you ahead of the game. I think you'll be fine.

 

[triplehorn]

What Mac said. It's time in the market, not timing the market.

.

 

[Ag with kids]

In reply to:

---

---

 

[Oilfield]

Roy 4, sounds like you're in very good shape right now. I would not be worried at all in your shoes. You have nothing but time. Take care of your health and your money starting immediately and feed the spiritual side of your life as well. You will have a great degree from one of the best universities in the best country on the planet. Life is good.

 

[EuroHorn]

Well how did the great depression impact you? How about the oil embargo back in the 70s? What about the stock market crash in 1987?

My guess is that you probably don't think about those because they are so long ago. Well 30 or 40 years from now are you going to be worried about the great global economy downturn of 2008?

 

[BA93]

If you're just going out into the world, always remember to keep your marketable on the job market. If you get chances for your employer to pay for any additional training, take it. Even if its just some 4 hour seminar on a Saturday.

Second, there is little to no loyalty in the employee-employer relationship. You're basically only guaranteed that you will get paid for the day you are at work. Never know about tomorrow. Build up an emergency fund. you hear quotes of 3-6 months of expenses. Its not easy to save it up but anything you can will save you if unemployment happens. Besides you take that money and drop it in a 5% money market account. Keep contributing and it will grow quickly.

My point is that while the overall economic picture can always affect you, but if you insulate yourself by being a highly qualified future job candidate and you have some money save up, you can weather any recession storm.

 

[Brisketexan]

Constantly evaluate your co-workers and neighbors so that you have a good idea who to eat first should civilization collapse and we descend into a primal state.

 

[Roy4President]

In reply to:

---

---

 

[Summerof79]

"solid offers" are they? It might depend on which area of the market you are being employed. My Bro-in-law workd for a midsize toy company- They are about to dismantle their sales force and go with outside contractors, whose efforts won't save any money according to my BIL. They are scared though about the markets and the dip in retail, and consumer spending. What sucks for the folks my BIL is going to have to fire, is that he also has to take their car and their cell phones, and he is FIGHTING to try and get them more than two weeks severance....

If you have truly solid offers, not a lot of debt and can be frugal for a year or two you might really find yourself in a good situation. ESPECIALLY if you have great credit. (ie_ do not miss a payment on your student loan) you might be able to buy one of the houses either that will be foreclosed upon or a house with a depressed price. If you are young and single I would try and buy a duplex as soon as possible, tbut that part of the market may not be as solf as single family homes because of the lack of ability to qualify more folks who were buyers a year ago are now probably near permanent renters for a good while.

As far as investing do some homework! But more than anything just invest to the max in your Company's 401K if they have one (a consideration in accepting a job offer by the way) and buy a home/duplex as soon as possible to write off the interest, and begin to build some equity.

Slow and steady with the stocks and you should be fine over time, as it's long term investors that do the best over time.

PS- if the market does go to complete **** and jobs are no where to be found I woudl start thinking about what graduate degrees I might be interested in....