This month, as we remember the 9/11 terrorist attacks of five years ago, many people are reflecting on how life has changed since then and considering some of the lessons learned. While financial lessons are far from the most important takeaways, Smart Money magazine recently summarized a few such lessons. First, don't wait for a tragedy to make sure your financial house is in order. The article noted that life insurance sales spiked right after the attack, but then quickly tapered off as complacency once again settled in, leaving many families underinsured. Second, don't let your emotions guide your investments. In the two weeks following the attacks, investors pulled some $30 billion out of the stock market and the Dow Jones Industrial Average fell over 14 percent. Within 40 trading days, however, the market was back to pre-attack levels.
Matt's View
Perhaps one of the most important financial lessons we can all take from the tragedy of 9/11 is to make sure we're using our money to support what matters to us most of all. Some people profiled in the Smart Money piece took an early retirement after the attacks to spend more time with family. Others went ahead and started that business they planned to start someday, one day. Perhaps one financial planner said it best when she summarized the feelings of several of her clients: "They stopped worrying about how to get the best return on their investments, but rather, how to get the best returns on their lives."
For those with a desire to volunteer or donate to a good cause, but who are pressed for time, Charity Guide may be of interest. According to a recent article in the Chicago Tribune, the organization's web site lists 170 "flexible service projects"--everything from helping the homeless to protecting the environment--that can be done in as little as 15 minutes. The projects range from the simple (reading about how to conserve water or electricity) to the more involved (donating money to help provide supplies for a school classroom). Founder Michael Organ's goal is for the site to eventually generate one million acts of kindness per year.
Matt's View
If you're new to charitable work, this site offers easy ways to get in the game. Or, if you're a philanthropic pro, it'll help you expand your giving repertoire. One especially creative approach taken by Charity Guide is its encouragement to turn short stretches of free time into productive giving time. Find yourself with an extra 15 minutes due to a cancelled meeting or delayed flight? Log on and help out.
Just reading the above headline may have made some readers break out in a nervous sweat. We love our cars. We need our cars. Or do we? The Washington Post recently reviewed a new book, How to Live Well Without Owning a Car, written to challenge our assumptions that we need our cars. Author Chris Balish has been living car-free since 2003 when he sold his gas-guzzling SUV. He intended to buy a smaller car, but in the time between cars experienced such a powerful new level of financial freedom that he's been living without wheels ever since. His book profiles 100 people around the country who are living the car-free life and includes chapters on everything from carpooling to car-free dating. He isn't making a radical call for all to forego their Fords or bid adieu to their Audis; he just wants people to see that it is, indeed, possible for many to live just fine without a car or for two-car families to live well with only one.
Matt's View
With so many people finding it tough to save money, maybe Balish is on to something. So car-crazed has our culture become that there are now more registered vehicles in the U.S. than licensed drivers. Not surprisingly, 20 percent of new homes now come with garages build for three or more cars. Fueling, maintaining, insuring, cleaning, parking, and, oh yes, paying for a car, now costs the average car owner about $700 per month. So, for those wanting to improve their finances, maybe it's time to think about the previously unthinkable--life without a car.
The average cell phone user--and there are 200 million of us in the U.S.--gets a new phone about every 18 months, according to a recent article on MSN. What becomes of the old ones? Tens of thousands of them, each one containing toxic materials, end up in landfills every day. Fortunately, there are alternatives that are both better for the environment and good for your wallet. RIPMobile gives gift certificates from stores like Circuit City in exchange for certain used cell phones and Cellforcash.com gives, you guessed it, cash. Both companies will even send you a free shipping label. If your phone doesn't qualify for either company's program, CollectiveGood will at least give you the forms you need to claim a small tax deduction for a phone that you send in for proper recycling.
Matt's View
Of course, the other way to save the environment and our money is to keep our cell phone for a long time. Today's phones have become fashion statements and the fashion industry is built on planned obsolescence--the endless parade of new styles designed to keep our relationship with our money short term. Sure, our old phone may not be painted a designer color or enable us to keep up with our favorite sit-coms, but hey, it can still make a call.
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