Modern Gal’s Finances

I chuckled when I looked at my first few entries on this new blog. In planning this blog, I was thinking that this would evolve into a personal finance blog, one where I wrote about efforts of downshifting paychecks, saving for (early) retirement and various economic and financial issues that are of recent discussion. What I see is that most of the posts thus far are on food. There are probably several reasons for this. One, I eat everyday, so I’m constantly surrounded by food. Two, it gives me an excuse to read other food blogs and post comments. And, three, I am still in denial over the decline in the financial markets.

So here’s the situation: a year ago in December 2007, my net worth was about 30% higher than it is today. Although I understand (on some level) that I am very fortunate, and that most people on this planet struggle for daily survival, I nonetheless feel somewhat cheated. After all, I have never been a profligate spender, I have always paid my credit cards in full, and I was diversified in my investments. I can sum up the panic in a few words: WaMu bank account (check), shifted money to AIG annuity policy in 2007 (check), had several consulting checks bounce or delayed (check), anticipate substantially lower income for next year (check), and health insurance premiums up over 24% next year (of course check).

While there are a lot of personal finance blogs about getting out of debt. Most offer practical suggestions that can be implemented reasonably quickly (like cancel the cable subscription, stop eating out so much, and so on) along with interesting vignettes of how they descended into the depths of great debt and hopefully how they are gradually working their way out. I’ve also found finance blogs that analyze the latest economic news or give tips on trading stocks. However, I haven’t found too many blogs that seem to address the moment when you realize HOLY SH*T, my retirement has just gone down the drain. Or, I have to redraft my early retirement plans all over again.

So with that as a backdrop, I will embark on a 3-point plan which I intend to document here, to build back some financial security:

Point 1: Breathe – Imagine if you didn’t do this

Point 2: When calmer, write out a real plan (and review regularly)

Point 3: Save more, which can result from earning more, spending less, or both

I’ll report back each week on the progress.