The World is Crazy

My 2016 post (Why I cancelled the Bauman Letter) concerning finances and your money seems timeless. This is a comment from Unknown yesterday:

HELP. It is August 2020 and everything is crazy. I am scared, but trying hard to remain calm. I have a small/moderate savings and only a small income. Fortunately I have no debts at all. I'm feeling very unsafe right now. I feel certain I should do something but don't know what. At one point I have subscribed to half the services out there. Any direction ??? Thanks.

Who knew in January of this year that the world would change so much? Everything is crazy.

I know you're scared. I see fear reflected in the eyes of everyone lately.

It isn't easy to remain calm, but keep trying.

Any kind of savings is noteworthy, and no debt is worth praise. Well done for both of those difficult accomplishments!

You have a small income, but look at it differently. You have an income. (I have a small pension, as well, and I'm grateful.)

You feel unsafe. I get that.

We both feel we should do something. But what?

Financial services just want your money to be theirs. If they were as good as they say, they wouldn't need subscriptions, would they?

So what can we do?

First of all, look at all that is good and lovely in your life. You do have savings. You don't have debt. You have some income. Those are all positive.

Spend less than you make. I've repeated this like a mantra in my financial posts because it is fundamental.

I'm not saying to move into a cave and live like a monk. Examine your finances and reduce what expenses you can. I had a $40/month phone plan. A little looking around and I found a twenty dollar a month plan that works fine for me. We don't have cable television, but we do have the internet and Netflix and Hulu. Frankly, most of the big-name cable stations have trash on them, so why bother?

We look at our isolation as a negative, but it gives us more time to cook at home. We can save some money on eating out (the number one expense for citizens in the USA). 

Yes, the financial world is in chaos. I have no clue where to invest and have little inclination to do so. The banks offer me so little interest I am seriously considering taking most of my money out and keeping it at home.

I won't do that. Not quite yet. But my favorite bank just sent me a note telling me their interest rate dropped from 1.0% to 0.8%. We're getting close to zero and that's a whole new ballgame.

Remember my advice on the stock market. A good stock is worth owning if you can get it at a good price, but be willing (and able) to keep holding it through chaotic ups and downs.

What's a good stock? Personal preference rules on this one, but I think a company must make something worth buying and should have a good (if not great) dividend history.

In the past I bought recommendations from newsletters. I cannot recall a single time when it was a great idea.

Let's look at some history for a moment.

From 1914 -1918 the world engaged in the War to End All Wars (World War One).

In 1918 and 1919 the Spanish Flu ravaged the world. I'm sure the people then were as fearful as we are today. 

From 1929 to 1933 the Great Depression pummeled the USA.

Just before that, Black Tuesday (October 29, 1929) devastated the US economy in the Great Stock Market Crash. It took over two decades for the US economy to recover.

World War Two pounded the world from 1939 to 1945.

All these terrible tragedies shook people to their cores.

Yet the tragedies passed. People survived. Their children thrived.

This too shall pass.

But here's where I have some solid advice, from my personal perspective.

I hold on to one thing, and one thing only. There is a God and He is in control.

I'm not. The government isn't. The stock market isn't. Only God is in control.

Relying on that one fact, that one solid bit of faith in my life, gives me a sense of peace.

Do I still wonder about good investments? Sure. A bit afraid of the path society walks? I admit it.

But a God who loves me is in control.

That's not to say bad things won't happen. I've been hurt before and I'll hurt again. But God remains my one constant in an ever-changing world.

So look at the night sky. The stars still shine. The moon still bathes us in soft light. The soft breeze still whispers to me.

God was. God is. God will be.

And He loves me.

He loves you.

There is peace in that, so please know that God cares for you.

As do I.

Don't give up. Look up.

Thanks for reading.

PS Here is where to find more about a personal relationship with God if you haven't one.