Can we afford to be entertained, right now?

By: Angela Jones

Some believe this is the best of times, for whatever reason and some say it is the worst of times because of political divisiveness in the country, rampant inflation, a volatile stock market and rising unemployment. Whether you view the glass full or the glass empty right now, one must admit that the future appears more uncertain than ever.

We do not know if there are more layoffs lying-in-wait for the New Year, or if gas prices will fall before the holidays, as we are being led to believe. When there is uncertainty, especially financial uncertainty, it’s time to dig deep and ramp up saving. Unfortunately, in order to start saving, spending must be slowed. That is the reverse of what many people are doing right now because of the holidays. I also believe people are spending as a pacifier to forget about all of the turmoil happening in the world today. That is considered ‘retail therapy,’ but that type of ‘therapy’ can lead to financial ruin or could cause a speed bump on the road to financial independence. I would rather have my money to use as a ladder to get to the next level of financial security through investments.

In order to slow spending in a household, it is important to know where most of the spending is occurring. Here is where creating a budget makes a lot of sense. Knowing how much is spent on categories like groceries, dining out, and entertainment. Entertainment, really? Who can afford to be entertained during times like these. If I played the lottery, watched sports, or enjoyed eating at restaurants, now is the time that I would be looking to curtail those activities, if not stop them completely. As the amount of time spent entertaining one’s self decreases, I will predict that one might see their savings increase significantly.

Also, one may want to consider purchasing a home soon if they are currently renting. There is no end in sight to the rise in costs for renting a house or an apartment. There is no shame in sharing a home or apartment with family or friends while saving for a down payment. Currently at least one bank is offering special financing for ‘people of color.’You may want to get your share before the green Martians take it all. Seriously, there are programs out there that will provide financial assistance for purchasing a home.Visit hamptonroadsmessenger.com for details.