How has the bad economy affected your spending habits?
Posted by admin in Finance Sunday, 21 November 2010 17:22 5 Comments
I am working on an article for a personal finance newsletter. I was wondering what real people are doing to brave the economy. Do you have any money-saving tips that may help other people. I’d prefer if your Yahoo preferences are set up to accept email. I may want to contact you for more information if i choose to use your answer. I’d appreciate your help. Thanks.
well. the worse the economy is, happens to be better for my dad’s business. he’s in the movie business and he has a sports agency. but.. it does make things more expensive and such.
I haven’t been buying as many clothes, (luckily vintage is in right now).
umm.. i guess we might not go out to eat quite as much.
I’ve quit spending altogether on non-essentials: eating out, gym memberships, unnecessary insurance, premium coffee, clothes, etc. For entertainment, I’ve switched to “indoor versions” wherever possible – using Netflix instead of the movie theater, cooking-in instead of eating-out. I now turn off lights I’m not using, and replace my home-phone with Skype while also reducing the plan on my cell phone. I make sure grocery shopping is more organized so I only have one trip per week, and I’m quitting all Christmas cards this year (replacing with e-cards). No gifts to my family (except for the kids, since the adults understand).
I also have started using a spreadsheet (Google Docs) to track my bank account and all expenses. Even though things are tight, I still want to move forward every month and pay off outstanding cards, even though it means we’re eating a lot of pasta! We have a crapload of card debt so I canceled all the cards and aim to pay everything off by the end of next year. We talked about replacing our car, but I’m pushing that to 2010 (at least).
I think things will get uglier before we turn the corner, so I’m preparing to make sure my family’s ok!
jbeswick < ,AT.> yahoo.com
I drive less, eat out less, no more starbucks in the morning…
I’m trying to consolidate CC debt too.
I’m spending all my excess cash scooping up stocks on the cheap, I’ve cut down on convenience shopping (i.e. bringing lunch to work instead of buying from the deli there). I also continue to stash away cash at multiple online banks (I one gets caught up in a bankruptcy I’ll still have access to emergency funds). I’ve added a little silver to my cache, in case things go really really bad. I’m spending most of my time & free money getting additional education… increases earning potential & takes up all my time so I’m not spending on frivolities.
Well, I changed my habits several years ago because I predicted this calamity.
1 – I am at work. The only things plugged in at my apt are my refrigirator and maybe microwave. I have power strips. I unplug everything when I leave. Sure, it takes an extra 30 seconds, but i have cut my electric bill in half. Last electric bill was 15.96 for the month.
2 – I ride the bus as often as possible. It is tough because I work two jobs, and one is full-time overnights and I have to drive my daughter to school in mornings. But, the bus is awesome. i have a card through work that is 36 dollars a month all you can ride and uses pretax money. I save miles on my car, gasoline and its actually a lot less stressful. Istead of rushing in and out of traffic, I have 20-25 min bus ride. I can read, socialize with the familiars or just people watch. It is a good stress reliever.
3 -I know it is obvious, but stay out of debt. I have no credit card or auto loan debt. And,I have never been happier. It took 2 long hard years of paying everything off – no going out, no movies, no fun… But, now, I have 500-700 extra spending money every check. I save most of it.
4 – enjoy the small things in life. iphones, xbox360s, wiis, giant tvs and super computers are nothing more than traps to get you to buy the next best thing. Its a revolving door. I still play my original xbox. Not because I need super hi-def games. But, because they are just games. And, I never get to involved in them. Because, there is too much cool real sh|t in the world to detach from.