Save the economy. Buy the right things.
Posted on February 11th, 2009 – 4:37 PMBy Kara McGuire
To spend or to save, that is the question. At least it’s the one that’s on my mind, oh, about all the time, lately.
On one shoulder sits the spender, wanting to go out and take advantage of good deals and do my part to stimulate the economy. The saver perches on the other shoulder, reminding me that as someone who saved through the past decade, buying a home I can afford and waiting until I could afford a flat screen TV instead of charging it, why should I change my prudent ways now?
So which one is the angel or the devil in this recession? That’s a trick question, argues David Leonhardt of the NYT.
The topic of his column? Stimulate the economy while improving your “future self’s” financial circumstances by buying items that will save money down the road.
Example: A programmable thermostat that costs $50, but will save on energy bills. Our household did this a few years ago and we have seen our bills go down because we set it so the heat goes down when at work and asleep.
Example: A $55 Costco membership that you can make up in mere months depending on your buying habits. But be careful, you can stimulate the economy much more than you might want if you’re easily tempted.
Example: A seltzer maker for those addicted to San Pellegrino. This is a tempting one for me.
Here are a few examples I could think of that Leonhardt didn’t mention. Share your own spend to save pairings below:
Buy stocks. Heaven knows the market can use an infusion of cash. Find a couple of stocks you like and invest. Hopefully, over the decades, your small purchase will grow.
Invest in education. A class that would improve a skill and increase your workplace worth down the road would stimulate the economy now and improve your financial circumstances in the future.
Get yourself a bike. Commit to riding to work and driving less and you’ll save money on gas.
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