C Thomas shares his kind advice for us: be prudent, so that be prepared for what might come
“If you really have integrity, there are very few people that can insult you, or honor you.” Bill RussellGood Morning, I’m Austerity Jones and we would like to honor the subject of our 3rd podcast Bill Russell with a moment of silence. Bill Russell, the 11 time NBA champion, passed away at the age of 88.
C Thomas: Rest in Peace Mr Russell.
Austerity: C Thomas, you taught us the importance of sacrificing to win from bill Russell and I understand you have something similar in mind.
C Thomas: Yes I do and good morning Austerity. We have been talking the last couple weeks about how the common folk are becoming agitated with their governments and their decisions. The one thing to keep in mind is that driving your tractor to the highway and parking it doesn’t put food on the table or get you a paycheck so it must be done while being balanced with the rest of your life. I promised actionable items to consider and I am a man of my word.
First: build a nest egg. Remember when we talked about investing in yourself? Developing a new skill or perhaps getting a second job to start paying off your debt. That is the sacrifice that is important before something bad happens. Good intentions don’t count for much after a crisis has happened. We must sacrifice some of our leisure time, some of our extra activities or purchases before events that can take us out of our comfort zone take place. Save, clip coupons, get a paper route.
Austerity: I don’t think they have those anymore C Thomas.
C Thomas: Really? Ok, then drive for Uber if you have a car, pick up a few weekend shifts, volunteer for overtime, but get a coffee can full of small bills set aside just in case. When you are beyond broke, you have few options. Have a couple to start with.
Second: Get strategic and think. If you have some credit card debt, but you are a two car family, can you sell the second car and pay off that debt? Used car prices are very good right now so take advantage of it if you can. What if you lost your job right now, how big would that debt look? What if you could pay it off now? Then start saving and putting aside money for that nest egg. A second car does a lot of sitting around. Make sure that it is truly necessary. Thinking means making good decisions, not easy ones. Take the amount of times that you eat out a week, or leave a light in the other room or buy a soda. That money needs to be spent just as wisely as money toward your credit card. Remember little things add up to big things.
Third: Stay positive and try to find the good in a situation. There often is and it can be a surprise. I asked G Spot, who is not a fan of politicians to think of something nice to say about one of our politicians. He thought for a minute and said “Well, I think Joe Biden is quite good at getting on his bike.”
Austerity: He didn’t say that?!
C Thomas: Yeap. That’s where humor is so important as well. It is pretty cheap and makes you feel better.
Lastly, don’t believe everything that you hear. We have already learned to question what the government tells us, but honestly I think it is them lying because they feel they need to. This situation isn’t good as we have confirmed two quarters of negative GDP growth, but now the government says that one of their agencies will tell us when we are in recession. Listen, I don’t need a government to tell me that our economy is bad, I don’t need a government to tell me that they screwed up with how they handled the Mexican Virus, and I don’t believe most of what they say period. Always, always, always ask yourself this question, who benefits? Do the politicians benefit? I’d say 4 months before election, not calling two quarters of negative GDP growth a recession is definitely in the best interest of the party in charge. When the Federal Reserve tells you that inflation is transitory, then we get the worst inflation in 40 years. Forgive me if I don’t take them at their word right now about anything. That’s what you need to do. Focus on yourself and how to better yourself because the government isn’t going to always bail you out. For example, a bunch of people invested (they foolishly speculated actually) in the Crypto site Celsius and now they are writing letters to the judge begging for his help saying that they have lost their life savings and that they can’t pay their rent without help. I guess they weren’t too humble when they were putting their money in a site offering 17% interest? This is the time to be defensive people not aggressive, remember the goal is to avoid the outhouse and not buy the penthouse. If it is too good to be true, then it probably is. That brings me to the word of the week: prudent.
Prudent- acting with or showing care and thought for the future.
This isn’t a time for fear. There is a lot of opportunity during tough financial times. Whatever your area of expertise might be, always keep an eye out for an opportunity because they don’t come around very often. Be prepared and be ready to prosper. Unprepared people call that luck by the way. That’s actionable.
Austerity: What you say is actionable? Come on C Thomas! Which stocks should we buy?
C Thomas: Haha, oh Austerity… I don’t give individual stock picks remember the AARP and NAACP and all the other regulatory agencies that prohibit giving financial advice? Even on our fictional site, giving fictional stock picks might land me in fictional jail. Is there a jail in the metaverse? Regardless, I don’t want to go there either. But here is my advice. Be prudent. Be patient. These are times when things can change quickly. If you want to look at stocks then look at very stable companies, good balance sheets, companies that don’t rely on more debt financing to meet payroll next quarter. Then I would buy a little and wait, if you like the company at this price and it goes against you do your best Warren Buffet impression and be happy to buy more at a cheaper price. Remember to buy the company not just any company that looks cheap. Good companies will survive and probably pick up market share in the years ahead.
“He who is prudent and lies in wait for an enemy who is not, will be victorious.” Sun TzuSincerely Yours,
C Thomas Printer
Also born on this date:
Lucille Ball,
Robert Mitchum,
the discoverer of penicillin – Alexander Fleming,
Dutch Schultz,
and Ginger Spice Geri Halliwell.