drought

March 17, 2009

We haven’t had a lot of snow this winter.  Experts are predicting a dry summer.  Dry spells aren’t any fun.  You water as much as necessary to keep things alive, but you don’t water everything because water is limited and expensive, and you don’t want to waste it.  What lessons can a drought teach us about our finances, in a time when we feel like our money is drying up?

Water what’s necessary

Just as you provide water to your best plants or trees during a drought, you’ll need to do some careful watering of your money, too.  You want to make sure you’re paying all your bills.  Don’t neglect to pay for the electricity, water, gas, and phones.  Food is fairly important; make sure there’s always some of it to put on the table.  You also need to keep up with basic maintenance on your home and car.  Repairs that seem expensive now might break the bank later, after you’ve allowed them to get worse.

Don’t water everything

On the other hand, there are some things that don’t make sense to spend money on right now.  Now is probably not the best time to sign up for cable or satellite TV.  You may not need the best new cell phone or the best new laptop.  A new car or an addition on the house also don’t make sense if you have other goals that are more important, or if you’re worrying about running out of money.

Once we’re through this financial drought, times will be better.  It may take us a while; it might be this year, or it might be many years from now.  Keep being sensible about spending, keep searching for a job, don’t leave a job without another one lined up.  Keep the dinners out and the new iPhones to a minimum.  And imagine the green garden waiting for us on the other side!

This article originally appeared in the March 11, 2009, edition of the Greenhorn Valley View.