A few weeks ago, I read this post over at Rude Cactus…and you know, he got me thinking about how I feel about the economy and what I am doing to ease the financial stresses that go along with this media created “recession.” (this is my humble opinion…I know that there are true reasons, financially, why we are seeing a slump…but it is FUELED by the news.)
Well, perhaps I shouldn’t blame the media - but they create such pandemonium. There are people rushing down to their local banking institutions and withdrawing every thing that they own out of fear.
I am actually quite happy that the stock market is coming down and the market’s landscape is changing. Buy low, sell high as the old adage goes. It is the greatest time in the World to invest…and at my age, I feel that I can take the added risk to weather the storm and invest where I can - pay my bills and continue to live frugally until times are a little more fruitful. It’s not like I’m retiring tomorrow - so my 401k and IRAs have plenty of time to bounce back.
Yes, it’s a pain that gas is $3.50 a gallon, and that a gallon of milk costs $5.00 - but guess what folks, we’ve had it good all these years…everytime that I have gone to Europe over the past 10 years - petrol and sundries were this expensive all along, so I guess it has been a long time coming over here for us!
Some of the things that I’m doing to ease financial stress is taking a little more care in my outside expenditures such as eating out and entertainment. I’m going to see free art exhibits and cooking at home. All you need to do is take a look in your paper to see what types of free or less expensive events are going on in your town to still have a chance to get out and do something fun!!! Don’t just sit in fear on your sofa and watch CNN.
Here are my questions for you - please chime in - we will be discussing your views this Wednesday, October 8th on Today’s Woman with Karina Lineback on KHTS.
I would love to open it up to you guys to see what changes you have made in your life, financially, to ease your budget? Are you making changes in your lifestyle? What do you see happening going forward?
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23 Comments
Hubby and I are going to install our own trellis system in the vineyard instead of paying a crew. Sounds frightening doesn’t it?
wow - that’s impressive Noble Pig.
Great post Jody. Around our house we’ve finally come up with a budget and we’re doing our best to stick to it each pay day. I make 90% of our meals here at home (even lunches now). We used to go out at least a couple nights a week. Heck, we haven’t had sushi in *gasp* over a month. We haven’t been clothes shopping at all and I’m waiting until the last minute when cold comes knocking on the door to buy the boy long pants because otherwise with as fast as he’s growing, we’ll be buying twice at least.
I think you are partially right on the hype freakin’ people out. As a business owner I still see the trend where people aren’t spending as much on themselves or gifts. Occasionally you get one that will, but this weekend at the Loose Goose festival I can tell you what the number one seller was - the Talismans that we were selling for under $40 each. Just selling those … we made as much as we did the first year we did the festival. So to me, that tells me that people are still spending, just looking for less expensive alternatives. But don’t get me wrong … there were still some of those shoppers that didn’t care … and ordered the most expensive piece too.
Great timing!!! Yikes as the stock market keeps sinking like the Titanic!! This has really made us stop and think and prioritize. We have shifted our spending habits. If we do not need it we do not buy it as there is a big difference between needs and wants. It is not that we have come to a hault we are just putting more thought into it and have taken the impulsiveness out in addition to spending on lesser priced items.
For the most part I am not in a panic at all as the 401K monies will come back as I cannot even touch it for about 20 yrs anyway. To be honest I am waiting for things to settle so that I can jump into the market as this will be a great time to buy. I view it as an opportunity some of the 401K money was used to buy funds at the highest level and now if I can buy at the lowest that will average me out.
Well, not being ones to curb our travel appetite, my hubby and I have curbed our dining out appetites. We’ve discovered our kitchen and the dozens of cookbooks that rarely get opened. Instead of spending our cash on expensive meals, we’re learning to cook ethnic recipes and are squirreling away our money saved in a special travel fund. So, we get to eat well and take a trip, too.
I’ve decided I’m going to become the best Indian cook any of my friends know. Move over curries - here I come!
Beth
I’m European, and here we can really feel the crisis! Prices go up almost everyday and some hard days will come our way. But I also think that the media are contribuiting for this, it’s alarming people and everybody feels down.
To be honest with you..I am scared to death of the whole “recession”. Everytime I turn on the news..all I hear is that we are going To Hell in a Handbasket! I wish the news would back down a bit, as everyone seems to be feeding off of the negative.
My husband owns his own swimming pool company which has been in business since 1979, so it has endured a few bad times. However this one has us stressing. Pools are a comidity in which people are not buying right now. We have had to lay off employees. This was difficult because all of our employees are family.
In our personal life we have cut back on going out to eat. So in a sense we ARE contributing to the ripple effect of the declining economy. However I did recently purchase an American vehicle. So I suppose I have done my part to add money to the bucket!
Every time fear comes up for me, I say to myself, “I refuse to participate in the recession and fear based thinking. In every economy there are people who do really well. I need to find what I can do to adjust my business to do well. ” So much of the market is psychology driven and I can’t do anything about anyone else’s psychology but mine. So I limit my TV time and only hit the headlines of what is going on–so to stay informed but not feed my own paranoia.
Having a business which is dependent on other people’s disposable incomes, I am being real about the fact that my services are something people can cut. So I am looking at creative ways to offer lower price point group services and am spending more time marketing both to old and new clients. I think about the fact that maybe people will only come once a month instead of every other week so that means I need more people in the door. It is making me be more creative! I am spending more on marketing and less on non-essentials–entertainment, dining out, clothing etc. I’m probably spending the same but it is going to different outlets.
I have always prided myself on being a great bargain shopper..I never go the supermarket without coupons and I definately look for the Sales…However I learned very early that you get what you pay for…
As I enter my second year of business I have to say that consumers are definately out there and willing to spend their money for quality…I’ve tried hard to keep prices steady at the store so my regulars don’t feel gauged over a Cupcake…but then again…I’ve noticed they don’t mind spending a lil’ more for something they simply can’t live without…even if what they buy from Babe’s Dessert Bar.. (LOL - nice Plug here girls…LOL) is only a moments worth of pleasure…
I happen to agree that alot of this Economic slow down is Media driven…nothing else to talk about but $$$ and Sarah Palin…Where’s the real good gossip!
I too have a few years before retirement…my plan is to make small safe investments that present money earning opportunities…You have to spend to earn..Save to invest and I have to learn my shopping limits!!!
None of this news is pleasant to me, although some of it could be seen coming years ago. Young families buying half million dollar homes and paying a $1000 monthly mortgage, then doing a quick second mortgage to buy that souped up SUV. We just knew it couldn’t last.
My husband and I paid off all of our credit cards about 10 years back, and have been none worse for the wear. In that instance, the credit crunch has not affected us.
I work in a small school district, where we have many young teachers. There is a whole group of them who spent the better part of 10 years getting a sweet ARM then refinancing after 2 years. For their whole married life, this was just the way it was done. Then, the bottom fell out of the market and there was no more cheap money to be had. Again, they were responsible and played by the rules of their generation, but it has been a rough last year for many of them.
My blog focuses on local foods, and while I’ve just started blogging this year, I’ve been a huge fan of our local farm stands for 20 years. The high end foods the end up in Chez Panissse and The French Laundry are often grown a stone’s throw from my house. This summer though, there has been a strong resurgence in local people shopping at the farm stands to cut costs. While much that they offer is a bit less than at the supermarket, the quality is far superior and we also know that there were no shipping costs / fuel involved.
On a more day to day note, we are spending less, and stashing away a bit more, just for comfort’s sake.
There has been one rough decision (which sure pales in comparison to laying off family members from a business) is that we have decided not to send our teen age son on a music tour through Europe this summer. Just 6 months ago we decided to just pull the money from our long term savings, but at this point, those are dwindling so quickly, that although we are confident of a rebound, we can’t in good conscience pull that kind of money at this time for this trip. We’ll just lost the $500 deposit, but look forward to future opportunities. And good kid that he is, totally understands.
before the credit crunch really started we bought a little sub-compact because our mini van was just guzzling gas and though we still have it we don’t drive it unless we have to take the whole family somewhere. i know it’s odd thinking to buy a car to save gas but we have saved so much money. we paid off all our credit card bills over a year ago, i shop at my farmers market, which is a lot cheaper than the grocery store. i cook at least 95% of our meals. i can’t tell you the last time we saw or rented a movie. i haven’t seen the inside of a barnes and noble, in forever… but i am now re-acquainted with my local library. my kids aren’t getting an allowance but they have learned to recycle can and bottles, so they now seperate and save all our cans and bottles for extra spending money. i’m sure going forward the economy will bounce back, it always seems to, but hopefully with some lessons learned.
This is a thought provoking post…
I would not call myself a “bargain shopper - nor do I throw our money away. I make decent choices but seldom use coupons.
I think that the way things are going, I may end up falling into that “bargain shopper” category. It’s funny, I even saved my coupons from the paper this week. I am finding I am paying closer attention to the “great deals” that are advertised… always looking out for “the greatest” instead of “really good” deals.
I am making different choices for my family. Instead of driving to the local fast food joint - burning costly fuel AND paying way too much for fried death… because there just wasn’t time to make dinner… we have a bowl of cereal, and a banana. Of course, I find I am turning to fewer organic options too. I figure non-organic apples/lettuce/berries is better than no apples/lettuce/berries at all. I hate admitting that.
I am driving less. If i don’t HAVE to, then the errand waits. It makes me physically ill to have to pay over $60 to mostly-fill my gas tank (minivan). I would seriously consider a hybrid, if we could afford to make the purchase… Instead we work to pay the $800 bill for our propane… $3.25 a gallon to help heat our home and cook our food. Oh yeah, we’ll be layering socks and blankets… and you know what - I don’t need propane to make a bowl of cereal…
Oh my gosh! You’ve got it so, SO right! Ben {the husband} and I talk about this all of the time! It’s like the media creates these self-fulling prophesies! It’s like, here’s an idea, this could be bad -so let’s pound that into the ground and beat a dead horse with it… You’re right, obviously there are reasons for it, and ebbs and flows are what the market is all about, but it is made so much worse by constant predictions and ‘pandemonium’ as you say that truly IS all fueled by the media.
I am an American, but I’ve lived abroad for 4 of the last 5 years and it is true -as much as it hurts my feelings and angers me for other countries to call us ignorant Americans are completely ignorant to how good they have it. Over here {Australia} we pay well over $5.00 per gallon of gas and well over $5.00 for a gallon of milk {it’s liters though!} -depending on the exchange rate. I also pay $1.50 for sippy cups that cost $8.00 here and when we moved here, to buy the SAME exact make and model of the car we had at home would have cost 3 x’s what we just sold it for. Since moving here I have found TWO things that are the same price or cheaper as at home… you read that right TWO, in 10 months of shopping. Though the situation is improving as the US dollar is finally stronger that the Aussie dollar!
I am amazed at the things I took for granted and probably whined about just like many are whining about at home. Just be grateful and look on the positive for gosh sakes. You don’t gain anything by focusing on how terrible things are and what a crap situation we are in.
And if you stop to think about it, you might realize that you, yourself have not even been affected by it that much if at all. And if you knew anything about the way the rest of the world lived, even 1st world, rich countries, you’d still be grateful and kiss the ground you walk on at home. Trust me, you would if you had any idea.
Yup, great time to buy and to invest. That’s what we did last week, and I’m sure in a few years when the market has bounced back, we’ll look at it like it was the smartest thing we ever did.
Well I live in Canada and I have a feeling that a recession has not hit yet. Housing prices skyrocketed here in the last 4 years whereby in our small city with a population of 107,000 we saw an increase in the market to big city prices like Vancouver. A single dwelling home was an average of $450,000 and what did you get for your investment..next to nothing….As a single mom or a young couple it is financially inpossible to get into the market on a single income. Builders saw large profits in slapping up condos but now there is a glut in the market and these spaces are unsellable. So what have I been doing to ease my financial burdens over the past 4 years???Our economy has been on an even keel but our wages stay the same. …..eat in, walk where I can ( I did purchase a bus pass once but the bus system does not coincide with my time frame), get a second job for luxuries like vacations, took mini vacations and became a tourist in my own town (with the price of gas it is not feasible to travel too far)…..
WOW!!! I didn’t realize what a stir this would cause!!! Thanks everyone for chiming in…
Noble Pig - cannot WAIT to hear all about your vineyard adventure
Beth - You’re TOO cool to say that you’re gonna be best Indian cook ever - can’t wait to try some of the recipes if ya post ‘em
Clumbsy Cookie - keep us posted on your end, we’d love to know your input from across the pond
Leslie - don’t freak out just yet!!! It’ll get better…what goes down must come up? RIGHT???
Carol - LOVE the mantra - we should all try it!
Denise - Great comments - yes, people complain about paying for cupcakes (i know that for sure…) but they won’t get the same quality from a grocery store - stick to yer guns and CONGRATS on being in year 2!!! Awesome!
Louise - we can all learn a thing or two from you!!! Way to go being Debt Free - must feel GREAT
Krysta - I too have hit the local library again - awesome that you’re doing that! I find that when I go into Barnes & Noble or Borders - I end up buying a book that I may or may not read and then I’m out $8 - $10 - $15
Jennyonthespot - Mmm…cereal for din din…we did that growing up! I think it’s a BRILLIANT idea!!! And isn’t it crazy how expensive those hybrids are???!!!???
Hot Garlic - so true, so true…can we send you some sippy cups??? Can do if you need ‘em!!!
Bellini Valli - well said to be a “tourist in my own town” - more people should try this…when I lived in Los Angeles - I found TONS of fun stuff to do at next to nothing - same thing being back here in Houston!!!
We’ll try to mention some of your ideas on Wednesday’s radio show!!! Thanks again for all the GREAT feedback - I got some good ideas myself!!!
I have to agree on the media thing a bit. My mom has called several times asking if she should take her money out the bank and put it “under her mattress” so to speak. She, along with many seniors living on social security and/or small pensions are scared out of their wits!
I live in a very expensive part of the US, where housing prices are astronomical (and trust me, the normal worker in this area doesn’t make all that much more money than a normal worker elsewhere). There is no way at our current jobs and salary that we can own a place of our own, so we have been trying to save to someday maybe move and buy something.
Like Cathy, we are paying much more attention to the difference between a “need” and a “want”. We’ve put off that big trip overseas next year and are planning a west coast road trip for our vacation instead. We are taking a second look at things like gym memberships, upgrading that old vacuum cleaner etc. But we put into place a while ago some “cost cutting” measures to help financially, like commuting together to save gas, bringing leftovers for lunch or selling off most of our hockey season tickets.
One thing I’ve decided NOT to really worry about is food. I would rather spend a bit of extra money for a really good organic chicken than the cheap supermarket one on sale. I’m still going to buy organic foods like milk even though it might cost more. I may think twice about buying that package of $79 a pound of dried mushrooms but I still might buy that expensive bottle of truffle oil and REALLY figure out how to cook many dishes using it (instead of letting it sit in the cabinet). We’ll probably still go out to eat every now and then but maybe we order house wine instead of buying a bottle, or we just drink tea instead of sake with our sushi. Give up ordering appetizers and dessert and just order an entree. But I think unless things get worse, we’ll continue to eat out as much as we have.
But I admit, I am a bit scared and keep going back to that “needs verse want” thing. And since technically I’m at retirement age in 13 years, yeah, that has me nervous.
Mrs. L - thanks for weighing in on the subject! I too won’t skimp on my organics…but then it’s just the two of us and not a family of 4, so…And it does help if you just order a main dish and no sides/apps/desserts!!! Or wait til you get home to have that glass of wine, wink, wink!
Hey…let me know when you’re experimenting with ye ol’ truffle oil - would love to be your taste taster!!!
As someone who made a decent living in southern CA, to moving to Portland, OR (where the cost of living is a BIT lower)… getting a job making 1/3 of what I used to has been an adjustment simply on the whole job factor. Add to that, rising gas prices (hello, why am I still in outside sales??!), a slower economy, and just trying to get into the conservationist lifestyle prevalent here in Portland. Don’t get me wrong, in CA I recycled and wasn’t what you would call a reckless spender (though I could do some serious damage at the Nordstrom shoe sales)…….. but my budget has seriously tightened up, so I need to really concentrate on where I spend my hard earned greenbacks. Like most of the people who have already commented, I pack a lunch for myself daily, and since I’m on the road, eating out is too much of a temptation. I make my dinners rather than go out, and try to stretch my meals. I still go out to a happy hour once a week or so, but that’s my big spend. Spending money for clothing and shoes has been pulled way back, and I am assessing whether or not I really NEED something or if it’s something that I can wait on. Instead of getting the premium channels in my new home, I’m sticking with the multitudes of DVD’s I already own. It’s easy to justify since HBO shows movies from like 1981. And last but not least, I’m decluttering the clutter. One man’s trash is another man’s treasure. I’m an avid crafter. I have tons of rubber stamps, scrapbooking supplies, and I can’t tell you how much fabric I own for quilting. Guess what? 50% at least is going to be sold on craigslist or ebay. For me, right now, I’m simplifying, and if that pays for a happy hour or two while I’m cleaning house, it’s SO worth it! At the very lease, it takes my mind off of looking at how much money I lost on my 401k last week.
Hi Kristine - thanks for stopping by and giving your opinion - most excellent.
I love the idea of getting rid of the clutter…I mean really, how much junk do we need????
Great way to make a few extra bucks!!
thanks for the idea!
jody
Good luck tomorrow, ladies!!!
Thanks - we appreciate everyone’s feedback!!!
You guys ROCK!!!
Awesome stuff in here
Thanks everyone for your feedback - great content for the show!! Once again Jody - Great post!!
Great topic! I have been feeling the fear, but no current income, it’s not like it’s dropped!! But I have been FOR SURE looking for ways to save. I am scaling back Xmas plans and we’ve had a garage sale or two — which is a 2fer: get a little cash AND de-clutter!
One of the above comments was really right on about people having bought more house than they could afford in the first place and every seems to be very comfortable with debt these days, including the government and businesses. So it should really be no surprise this is ll happening. Like your post says, more a question of what we do in response.
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