Earn What You Spend

If we learn anything from days like today, it’s that the market is fickle:

Source: Google Finance

Short-term investing in the stock market is a legal form of gambling - the market is simply too prone to wild swings like those from last week until today.  We saw some spectacular gains today, but it is easy to forget they are on the coattails of the stock market’s worst week ever.

My take: Things could certainly get worse in the markets, especially as some bold new plans are underway.  Moving forward, we’ll explore more of why we shouldn’t have money we need in the interim tied up in stocks, why cash is king most of the time, and the difference between short-term and long-term investing.  But for the interim, a continued focus on your earn/spend ratio is the best, and most effective, way to get your personal finances moving in the right direction.