Fiscal Friday: These Are Not Investments

I enjoy reading fashion and lifestyle blogs (guilty pleasure) and I've noticed an obnoxious trend. People refer to a pricey pair of shoes, a nice coat, or a fancy piece of furniture as an "investment piece."

No. Investments are appreciating assets or tools that allow you to make money. Clothing, handbags and home furnishings almost always depreciate in value.

I have some nice things: a leather handbag, cashmere stole, and high quality clothes. I like them, and it gives me pleasure to wear and use them regularly. But they aren't investments, and it's a dangerous habit to identify them as such.

Your wardrobe is not an appreciating asset. You will not be able to retire one day on your stash of J Crew pencil skirts, classic black pumps and Kate Spade bags, no matter how timeless they are. Unless you are Macy's, purchasing clothing is not investing; it's consumption. Invest in stocks; consume clothing, and know the difference.

Fiscal Friday: Managing Post-Layoff

I got my last paycheck last Friday, which was a nice one, thanks to all those vacation days that got paid out. Between our freelancing work, CodeMonkey's long hours at the office, and my final paycheck, we actually realized a decent net worth increase this month. The stock market also went bananas, so we realized a pretty massive paper increase in our retirement funds. We have about $1800 to go to meet my revised net worth goal for 2013, so I may end up increasing it once more.

When I got laid off, we'd fully funded my IRA for this year, and funded 60% of CodeMonkey's. I had enough cash to finish funding it and was going to make the transfer the day I got laid off. Instead, I shunted it into savings. I normally keep a three month emergency fund, but I was nervous about my job situation and had upped it to six months. It's at about seven months now.

Right now, any extra cash we make is going straight into savings. It is my hope that our freelancing, CodeMonkey's paychecks and my Unemployment Insurance payments will cover our needs with a bit to spare until I get a new job. COBRA is so extravagantly expensive that CodeMonkey added me to his plan, which has a $10,000 per person deductible, so I'm just praying I don't need much medical care between now and when I get a job.

In the mean time, I've nixed as much recreational spending as possible, returned a couple of online purchases bought before I lost my job, and hunkered down. I'm searching high and low for work and seeking new freelance clients, because the idleness of being home all day is driving me batty. I'm also looking into volunteering in the neighborhood in the hopes of giving back and getting to meet new people.