From time-to-time, I like to highlight GRS-reader projects. Chett wrote to share an idea he’s trying to get off the ground. 5k5k is a fitness and financial challenge. He’s looking for people to commit to completing a 5,000-meter (3.1-mile) run and saving $5,000 (or paying off $5,000 in debt). As you know, I think personal finance and physical fitness have many parallels. If you’re working on these aspects of your life, I encourage you to visit Chett’s site.
Here are a few other miscellaneous tidbits:
The U.S. Federal Reserve cut the federal funds rate to 1% today, dropping it to a level last seen in 2004 (and before that, 1958!). Officials hope that this will lead to an increase in consumer and business spending. This makes me tense. I realize I’m not an economist, but this seems like the opposite of what they should be doing. Some people — and I’m one of them — believe that low interest rates are partly to blame for the trouble we’re in now.
This hurts savers (high-yield savings accounts will drop their rates again) and encourages inflation. And I have to say: inflation scares me. I feel like it’s one part of this economic crisis that’s being completely ignored, but has potential to cause huge damage. I hope I’m wrong. (Update: Please see the comments for a discussion of this topic. Those who know more about the subject say I’m way off-base — which is why I try to avoid these sorts of rants!)
Last week I wrote about how to compute your real hourly wage. Today Trent at The Simple Dollar explores the connection between time an money in a slightly different way. I’m striving to improve my time management, so I found this article helpful.
Several readers wrote to point out that schools here in Oregon may resurrect mandatory personal finance education. When I was in school, state law required a semester-long class on the subject, but that vanished during the late-nineties “back to the basics” movement.
Finally, Cap from Stop Buying Crap took a break from his cynical ways to share 10 simple ways to feel rich without materialistic means. It’s a short, sweet piece, but I think it gets to the heart of what real wealth is.
This article is about Spare Change