The Party. The Hang Over. Now...THE RECESSION...

[Little32]

So how are people thinking about weathering this storm? What are your strategies?

[SummerChild]

I tried to get that three months of pay built back up in the bank. I probably need more the way this economy is looking.

I stopped contributing to my 401K in June. I won't start back up again until the economy comes back - or at least until 2009. I'll save my money post-tax, and lose the advantage of pre-tax savings, but hey, at least i know it will be there if I go looking for it....

I now have a budget.

I am thinking seriously about starting to take the train to work and saving on gas costs...and the cost to pay for monthly parking at my work location, which is roughly 100 per month (plus the 150-200 that i pay every month for gas).

i am trying to pick up a foreclosure downtown (where the market is still somewhat booming), put it right back on the market and let it sit while a close relative lives in it and pays the mortgage. then whenever it sells, cut my relative in and pay off some student loans. we'll see. b/c paying 200 extra per month does nothing for lawschool student loan debt (esp when you have graduate degee debt too).

those are my strategies.

SC

Originally Posted by Little32

So how are people thinking about weathering this storm? What are your strategies?

[preciousjeni]

Originally Posted by SummerChild

I now have a budget.

A budget is so essential! I've always had some form of budget, but since I got married in 2006, my budget got very specific and rigid. I've determined that we literally cannot afford to have TV, even the $18/month basic cable. People think I'm crazy for being so strict with the money, but doing so (and making smart financial decisions) has allowed us to live comfortably, buy a car, pay off all the family debt and buy a house within the past two years.

We're also looking into using the limited bus system along with being much more critical about our travel/transportation needs vs. desires. And, something we've been strongly considering is part-time jobs to build our savings account back up and pay off our mortgage more quickly. I'm hoping to have it paid off within ten years, preferably 5-7.

[Confucius]

Originally Posted by preciousjeni

A budget is so essential!

So essential is right and I bet a lot of Americans are thinking the same thing. I think that you and Summerchild are on the right track.

I am trying to figure out how much cable and phone I can cut off from my Comcast package. The only problem is that my cell phone doesn't really work in my apartment and my tv can not pick up a signal (and my tv is up to date). However, the basic package for the local channels is $20.00 a month and I would have to shell out $40.00 for my internet service so, I would still have to fork over $60 for about 7 channels and internet service. But I would save $70-$80 a month.

But to be honest, I did not have cable until I moved into my current apartment. I had no need for it. I watched local channels and used the DVD player and internet for almost everything.

Summerchild, I have not stop putting money in my 401K BUT I cut my contributions back by 50% I cut my contributions back to about 2% for the time being. Plus, I am not fully vested so, I should be ok.

Another thing I must stop doing is BUYING FOOD AT LUNCH............. $7 a day 5 Days a week = $35 week. Plus, if you are like me and don't cook on the weekend it could easily turn into $50 a week!!!! I would probably save $150 (assuming that I spend $50 on groceries) a month here alone if I cooked more.

It is weird that b/c our economy is so jacked, gas prices keep going down

[Honeykiss1974]

I've always lived on a budget - shoot I even budget my "play money" every month. (Play money is more than I'm allowed to spend on non-essentials such as new lip gloss, a new hair product, etc.).

I have definitely started to cut down my "play money" budget and have started be more observant of grocery store sales, etc.

Originally Posted by Confucius

Another thing I must stop doing is BUYING FOOD AT LUNCH............. $7 a day 5 Days a week = $35 week. Plus, if you are like me and don't cook on the weekend it could easily turn into $50 a week!!!! I would probably save $150 (assuming that I spend $50 on groceries) a month here alone if I cooked more.

OMGoodness, this is soooooooooooooooooooooo my issue too. After sitting here calculating, I spend about $50 a week, which adds up to $200 a month!

Originally Posted by Confucius

It is weird that b/c our economy is so jacked, gas prices keep going down

I always said our gas price was high primarily due to speculation but most people thought I was crazy. LOL I should ask them now why they think the price of gas is so low now. Here in Kansas, it was $2.67 when I filled up today.

[AKA_Monet]

Well I have a little credit card debt--I know--bad. I heard that one should ask for an extension and not pay it because what does a Credit Card Company need with my piddly money... LOL... But that I think would be unwise...

Then again, they said Pride won't feed your family... Take the hit to live another day to eat...

The other issue is, job security--I have none--so, basically, I am pounding the pavement to have a better job. The seasonal stuff will start soon, so I am looking into that also. And I am doing all kinds of networking. Especially with my business in mind.

Lastly, I need to redo my budgets. But I have found that grocery shopping in bulk for items you can live off of for awhile--like rice, beans, flour, dried foods and not purchasing processed foods that much or meats--and shopping at co-opts and farmer's markets will help your bottom line. Such as, if you know how to make bread rather than buy it, it would be cheaper during these hard economic times.

Other bills might have to get cut like cell...

This whole thing is just depressing overall.

[SummerChild]

Confucius,
For years, I lived w/out a cellphone or a cordless phone. I have NEVER had cable. How do I get along w/out it? Well, I talk to my friends on the phone, watch local tv and spend time with my man and with family. I really don't have much time to be surfing all of the channels that cable provides. Since I have been either working or in school since 1992 (ugrad, grad and lawschool), I have felt that if I had that much time on my hands, I could be asleep or going out and experiencing the world for MYSELF instead of watching someone else's world on tv. So, you might consider living w/out cable. Go to Walmart and buy an electronic antenna, ya heard. You will get at least three stations, and if you can't live with that, go out and get a life is what I tell people. You won't be watching so much tv anyway. (Not talking to you, just talking in general.)

Also, I cut my landline phone bill back to the basics - no caller ID, no three way calling, no star 69 service... and I told them to give me the $20 fee (not package) that consists of nothing but a telephone line. Yes, that's right. It is not a package and the sales people always act like either they don't know about it or can't figure out how to do it. Ask for a manager and tell the manager that you don't want a PACKAGE. You just want to know the cost for a basic telephone line. In NJ, it's $13. In Atlanta, it's about $20. It is amazing how much we pay for phone service in the home and most of us are either never there or use our cellphones. I would cancel the service altogether and keep only my cellphone, but I have a home security system that requires that I have landline service at my home. Otherwise, getting rid of the landline can save up to $70 per month, once they finish adding the FCC and everyone else's taxes to the bill.

Also, for my cellphone service, I use MetroPCS. Is it in your area? Metro gives unlimited local and long-distance and 411 and texting for a flat $40 per month. YOu never have to worry about overage charges (which used to eat me alive to the tune of over $100 per month) and there is NO CONTRACT. The drawback is that if you travel out of state, you may have to buy minutes (or something like that) depending on where you go. The way that I see it, I'm like, hey, I travel from time to time for work, I can go old fashion and simply get a calling card for $10 for those rare occasions when I'm not in my home state. Metro saves me a huge amount off of my cellphone bill each month.

I also don't get my hair done each week like I use. Yes, I use to get my hair done every week. That alone was roughly $200 per month. I haven't been to the hairdresser since June. I wash it, blow dry it, even relax it myself and just yesterday, I was getting my acrylic overlay (one of my few luxuries at $25 for a full set in Atlanta) and the *hairdresser* complimented me on my hair. Ok??? I told her, honey this is 6 months of nothing - for roughly FREE, ok???

My problem is that I don't cut way back on everything. I just do some of these things so that I'll have more money for some other things that I want to do...like trying to pick up a property and building my savings back up. But each little bit helps, I guess.

I just started on my budget this week. It's been a little tough b/c I don't like to have to think about what I'm spending. This is someone who never thinks to ask how much something is until the cashier rings it up. Yes, literally, it's a curse. The price doesn't even dawn on me unless it's something like jewelry (i.e., something that is WELL KNOWN for being extremely expensive). So it's a little bit of a drag to have to watch what I'm spending. This is also another reason that I'm not rushing to get down the alter. My beau has let me know that I'm "the one"; however, does a sister really feel like having her spending habits scrutinized? Not so much. LOL. Folk always trying to get down the aisle and get "chosen" by some man but that stuff comes with strings. I was buying a number of purses a couple of weeks ago (6 purses, yes, I know that's awful) and the lady who was selling them wanted to know if she needed to meet me in the alley to get the purses to me so that my husband wouldn't know about them...and she was completely serious. I told her, honey, wrap those purses up. I don't answer to anyone on this earth. So there you go, my spending habits are somewhat erratic and so a budget is hurting a little. But at the same time, I save so much on other stuff - like no cable and other things that maybe it all balances out.

I will be checking back on this thread to see how I can reduce spending.

Does anyone know how to get and keep utility bills down? Is it true that if I unplug everything, it will make a significant difference in the electricity bill?

SC

Originally Posted by Confucius

So essential is right and I bet a lot of Americans are thinking the same thing. I think that you and Summerchild are on the right track.

I am trying to figure out how much cable and phone I can cut off from my Comcast package. The only problem is that my cell phone doesn't really work in my apartment and my tv can not pick up a signal (and my tv is up to date). However, the basic package for the local channels is $20.00 a month and I would have to shell out $40.00 for my internet service so, I would still have to fork over $60 for about 7 channels and internet service. But I would save $70-$80 a month.

But to be honest, I did not have cable until I moved into my current apartment. I had no need for it. I watched local channels and used the DVD player and internet for almost everything.

Summerchild, I have not stop putting money in my 401K BUT I cut my contributions back by 50% I cut my contributions back to about 2% for the time being. Plus, I am not fully vested so, I should be ok.

Another thing I must stop doing is BUYING FOOD AT LUNCH............. $7 a day 5 Days a week = $35 week. Plus, if you are like me and don't cook on the weekend it could easily turn into $50 a week!!!! I would probably save $150 (assuming that I spend $50 on groceries) a month here alone if I cooked more.

It is weird that b/c our economy is so jacked, gas prices keep going down

[RaggedyAnn]

Originally Posted by SummerChild

Does anyone know how to get and keep utility bills down? Is it true that if I unplug everything, it will make a significant difference in the electricity bill?

SC

Sorry to crash your forum, but this is a topic that really interests me. My husband and I did some research on this and starting unplugging things like the microwave and coffee maker. Anything with a clock basically gets unplugged. We have the cable box, DVD player and TV on a surge protector that we turn off at night. The internet is also off when it is not being used. Chargers that are not being used still use energy if they are plugged in. We noticed a difference in the electric bill. It's small, but hey, money adds up!

For heating, we've put insulation in the attic, put in a new boiler (it literally paid for itself in less than 3 years), put in new windows and a programmable thermostat. Pipe insulation really helps as well-and it's really cheap. We did it in our apartment basement before we bought a house. That cost us maybe $20, but it saved us a lot a money. You can also save on heat by keeping the blinds closed in the winter. It makes it a little dreary, but if you have drafty windows, it is an extra barrier. (and if you're at work anyway) We used to wrap our windows in plastic before as well.

[Confucius]

Originally Posted by RaggedyAnn

Sorry to crash your forum, but this is a topic that really interests me. My husband and I did some research on this and starting unplugging things like the microwave and coffee maker. Anything with a clock basically gets unplugged.

I am going to try this...I have about 5 appliances with digital clocks in my APARTMENT!! LOL...

SummerChild...myself like so many people have become spoiled! I don't really need HBO esp since Netflix is $5 a month! And most of the cable channels are useless (think of how many times we flip 100+ plus channels, only to say - There is nothing good on). Most people only watch certain programs anyway.

But I am looking to save. I am not going to assume that my job is safe or that I don't need to save...I am going to try to stop these bad habits.

[SummerChild]

Thanks. I'm going to see if I notice a difference.
SC

Originally Posted by RaggedyAnn

Sorry to crash your forum, but this is a topic that really interests me. My husband and I did some research on this and starting unplugging things like the microwave and coffee maker. Anything with a clock basically gets unplugged. We have the cable box, DVD player and TV on a surge protector that we turn off at night. The internet is also off when it is not being used. Chargers that are not being used still use energy if they are plugged in. We noticed a difference in the electric bill. It's small, but hey, money adds up!