Economy concerns - how are you preparing?

[klmama]

I know some here have been hit hard by the economic situation, while others are still doing okay. Yet, don't we all want to be sure we are as well prepared as we can be, in the event things get worse? Let's help each other with ideas!

 

How are you preparing for a worsening economy? Are you stocking up on certain foods? Saving seeds to plant? Cutting back on Christmas gifts? Forgoing other purchases? Buying the things you want now in case they aren't available later? Something else? Please share your ideas!

[debbiec]

Getting out of debt ~ and staying out. Almost there!

[Tracy in Ky]

We're trying very hard to grow/raise/produce much of our own food. God is blessing our efforts, and giving us strength to do it.

[shell in SC]

We're not really doing anything like that. However, if it gets bad we'll let our house go and move into the double wide we're renting out. The payment on that is half what our house payment is, and if one of us loses our job and looks to be unemployed indefinitely, I guess we'll have to turn in a car. Hopefully that coupled with the lower tax and insurance bills will make a difference. Also we'll do away with the cable and internet. . .things like that. We haven't really needed to do that yet, but we have cut down on our frivolous spending dramatically. Very little dining out, unnecessary purchases, smarter grocery spending.

[KIN]

Well, I'll be perfectly honest and say that so far I'm not doing anything different. We have no debt except our house, we have a budget and (mostly!) stick to it, no credit cards, and a 3 month emergency fund. We are just keeping on as normal. Am I being naive? I don't know. But, I haven't seen a need yet to stop piano lessons, stop internet, stop Christmas spending (that we've budgeted for).

 

If our family business cuts back on our salaries, which is likely this winter, we will: stop piano lessons first, cut out new clothes, stop TIVO, maybe quit driving one car to save on insurance, cut back driving, turn the heat down more, be more frugal with food purchases (completely cutting out all pre-packaged stuff - cereal, chips, pretzels), stop trash pick up and haul it to the dump on our own, stop cell phones and internet.

[PariSarah]

Staying out of debt, being content with what I have, making do and doing without, and using what I have prudently. The larger economy is out of my control, but what I do with the money I have now is and has always been something I can control.

 

We have a six-months emergency fund, cobbled together over the years from Christmas and birthday cash, from those few years where we had a real income, and from judicious spending and saving during our lean years.

 

We've had some more substantial gift from parents and grandparents, all of which have gone into retirement or college (for the kids) savings.

 

We live on a strict budget now, and know how to live even more austerely.

 

We've always done the modest Christmas, buy-nothing-extraneous thing, even when we had a real income. We spent more on food in those years than we spend now, and we took vacations/excursions.

 

But basically we've always lived on less than we make, kept an emergency fund, been on the lookout for ways to make more money if we needed to, and been willing to "sacrifice" for the sake of financial stability. (I put sacrifice in quotes only because it feels weird to call delayed gratification and hard work "sacrifice." It seems like just plain normal life to me.)

 

That's what you should do in a good economy, and it's the best you can do in a bad one. The headlines don't really have much impact on my financial behavior.

 

And if we lose our income, such as it is, we'll do whatever we have to do to eat and keep the lights on. Thoughtful, hard-working people can always get jobs. Not always ones that pay very well, but ones that pay enough to get by.

[Cricket]

We are paying off our debt and making sure our motorhome is in good condition (should we need to move into for a while!). I've started couponing so I have a good stockpile of toiletries I got for very little or free. I haven't figured out garden space yet (we are in Arizona) but if things get bad, we will go back to Oregon where berries and fruit grow wild and you can grow more on accident than you can on purpose here. We still have a house back there with enough room to raise a few animals too. We would get some chickens again and maybe even a cow and a pig.

[Mad Jenny Flint]

I couldn't agree more with what you said. There are some things we can't control in life. The end.

 

Meanwhile, we just all have to keep on keepin' on, as best we can. And enjoy the bright spots where we can get them.

[Danestress]

I'm sort of torn between the desire to conserve, cut expenses, quit lessons, not buy curricula, skip Christmas, and the knowledge that if we all do that, a depression is absolutely guaranteed.

 

If we all decide not to buy Christmas presents, that's likely to put a lots of people out of work in retain and manufacturing. If we all quit music lessons, then all the musicians can be added to the unemployment rolls. If we all stop eating at restaurants (and we never ate out a lot and still don't, but I am being theoretical here) then that's a lot of failed businesses.

 

I am trying to be fiscally responsible but I am also trying to focus on the big picture and to remember that my hairdresser (just as an example) is economically dependent on people like me continuing to get hair cuts. It won't help the economy for millions of people in service industries, retail, and manufacturing to lose their jobs.

[Garga]

We've been blessed with a LOT of free wood, so I'm using the fireplace to heat the house. Right now I only use it if the outside temperature is under 50 degrees. I let the regular heat come on if it's over 50. (Saving the wood for when the temp is in the teen and the heater would be on all day to keep up.) I'm going to let our memberships expire all these places: The Science Center, The Aquarium, The Train Museum, The Zoo. Already buy most clothes at Good Will or consignment shops. Would do ALL the shopping there, except maybe work clothes for hubby, if absolutely couldn't find something good for work at Good Will. (But usually can.) I make sure that each week I have more cheap dinners than expensive. We eat very very little meat. Here's to spaghetti and grilled cheese nights. Future cutbacks: We have three cars now. Two that we use and one old one as a back up when the other two are in the shop. (The newest car is a 2000.) We would probably completely get rid of the third car. I'd start shopping only once a month so save on gas (since the stores are about 10 miles away.) Gifts would be much slimmer for everyone. That would be tough. In Laws expect nice gifts. Not sure what to do about that one, but would try to come up with something. Cable would go, but my husband would kick and scream. And, honestly, he mostly watches educational stuff (since he teaches at a college part time.) Cable would go last, just because he really uses the stuff he watches on there in his class. That's just off the top of my head.

[swellmomma]

In my situation nothing has changed, I was already very poor, a change in the economy isn't changing that. The main thing I am doing, is now working delivering flyers to boost my income. Easy work, money at the end of the month. If the market gets so bad that they stop printing flyers I still have enough to live on coming in, this is just to help me pay off debt fast.

[HappyGrace]

I'm looking at websites with lists of things to put aside in case of emergency and also for more long-term storage.

 

I did a search on these boards and found some GREAT ideas too.

 

We're also paying down debt. Dh is a head-in-the-sand mentality though so it's mostly me thinking about this stuff.

 

Some non-material things I realized were important:

1. Work with your kids on obeying right away-this would be vital in an emergency situation. Yesterday there was a fire alarm at our large public library and I was so happy my kids became silent and listened for my directions and followed them without questioning. I was so glad we had worked on this a lot at home.

2. We're also working more and more on "hiding God's Word in our hearts" to help us stay calm in the face of hardships and keep our focus right

3. We live pretty simply, which I hope will help them if we ever face severe economic hardship. At least they're already used to living without Playstation, etc.!

4. Teaching ourselves skills we could need in reduced circumstances that also come in handy and are enjoyable no matter what the economic climate-preserving food, gardening, making food from scratch, etc.

[HappyGrace]

we are making sure to eat as healthy as possible to maximize our health to

1. save on dr bills

2. go into any potential economic crisis with as-healthy-as-possible bodies

[Heather in the Kootenays]

 

 

Some non-material things I realized were important:

1. Work with your kids on obeying right away-this would be vital in an emergency situation. Yesterday there was a fire alarm at our large public library and I was so happy my kids became silent and listened for my directions and followed them without questioning. I was so glad we had worked on this a lot at home.

 

 

 

We were in a nasty car accident and when I told my 12 yo ds to get out of the car, he started asking questions - not good. We did some serious work on doing what you're told in those types of situations without question or comment - just react.

[Sunny]

Looking for part time work. That is just so that we have something coming in if my dh doesn't get work for the winter.

We prepared for this some time ago. We paid off all debt, stashed away a healthy emergency fund, and don't buy anything we can't pay cash for. However, this economy is worse than what we planned for. So, we're looking at alternative work, and ways to cut out spending.

[LisaKinVA]

1. Getting out of debt.

2. Building our house while costs to build are low.

3. Doing it ourselves, when practical.

4. Planning ahead.

 

Getting into our own home will allow us to control some other costs (food-related) much more easilly. Right now, I pretty much cook with a hot-plate, a toaster oven and a microwave. Which usually equates to buying food I could make less expensively myself.

[elegantlion]

We are almost pulling out of a personal economic crisis that we've been in for years. We done without many things so really I don't have a lot of fear about the economy.

 

We are almost out of debt and looking to buy a very used second car for cash. We don't use credit cards. We have an emergency supply stash, which came in very handy for two hurricanes this year.

 

We don't spend money on things we don't need. Everything we buy now has to have a purpose, better if it has more than one.

 

We are taking better care of our health. we have trees galore on our property and a real woodburning fireplace so we could make do for heat.

 

There are more, but I have to start school. Internet service will be the last thing to go, I know that.

[Michelle T]

We have high credit card debt, which we are hoping to pay down. Our house is worth less than we owe, and our mortgage payments are high. DH is making a lot less than he did two years ago, he is a commission-only loan consultant.

 

If we could get all our credit card debt paid off, I'd feel okay. It's been difficult though, as DH has had a couple months over the past year where he literally made zero pay, and several months where his take home pay was less than $1800 for the month. That doesn't even cover our mortgage, much less food and other bills.

Michelle T

[peachskittles]

Someone needs to get a job.

 

My SO hasn't worked now in 8months. I haven't started offically looking for work until my little one turned a year old in September. We have 3 weeks of unemployment left (the extended federal unemployment). We are discussing which one of us is going to go work for McDonalds. There are no options right now, but I'm still going to think positive...

 

It'll get better.

[Rhonda in TX]

Getting out of debt ~ and staying out. Almost there!

 

We almost have our credit card paid off. After that we'll get some short-term savings, then concentrate on paying off DH's car. Our house payment is not unreasonable, so I don't worry about that too much.

[sandellie4]

I just wanted to say, hang in there. :grouphug:

 

Sandy

 

Someone needs to get a job.

 

My SO hasn't worked now in 8months. I haven't started offically looking for work until my little one turned a year old in September. We have 3 weeks of unemployment left (the extended federal unemployment). We are discussing which one of us is going to go work for McDonalds. There are no options right now, but I'm still going to think positive...

 

It'll get better.

[Peela]

I have put in a vegetable garden in the last couple of months.

I am not committing to any more homeschooling classes and I have cut back on a major one.

Somehow my curriculum junkiness has gone,but I am left with a lot of unused STUFF which I am going to sort through and keep anything I could use if times get difficult and I cant afford to spend money- and sell the rest.

[Ria]

We have cut back on Christmas expenses; this year each child gets $50 and his/her stocking stuff.

 

We are sticking to a budget; we are using the YNAB budget plan and it's working extremely well.

 

I'm working part-time, and have begun working 9-1 on weekends to get extra hours. It's not the ideal situation, but times are tough and I don't forsee them getting better in the near future. The more money we can save right now the better.

 

I'm making sure we have one or two bean/rice meals per week to cut back on food expenses. I already do a lot of other things to save money in the kitchen (see thread: http://www.welltrainedmind.com/forums/showthread.php?t=66791&highlight=saving+money+kitchen)

 

I'm trying to work enough hours this year so that I'll qualify for health insurance (Wegmans is fantastic - part-time employees can get health insurance!) just in case something happens to dh's job. I want to know we have a backup plan.

 

Ria

[Stacy in NJ]

Nada, nothing, zippo. We don't have any debt, so can't cut back on that. We have significant savings. I don't feel the need to bulk buy anything. Our Christmas will remain the same.

 

We're just sitting tight. Looking around at our local economies (NJ and NYC), my perception is things are going to move from bad to worse. I am very concerned.:confused:

[Kari C in SC]

Someone needs to get a job.

 

My SO hasn't worked now in 8months. I haven't started offically looking for work until my little one turned a year old in September. We have 3 weeks of unemployment left (the extended federal unemployment). We are discussing which one of us is going to go work for McDonalds. There are no options right now, but I'm still going to think positive...

 

It'll get better.

 

The government may extend unemployment benefits again in the lame duck session next week. I have an awful lot of family members that have been laid off this year. I am hoping this comes through. Hang in there.

[Kari C in SC]

We have had to cut back since I was laid off 2 years ago, so not much is really changing there. We have made a few decisions that are due to the economy. Recently, I found out I was eligible for the emergency extension on unemployment benefits because of when I was laid off. It would be nice to just add that income into our monthly pay out, but instead we are stashing it away into saving. I keep thinking a vacation would be great for that unexpected cash, but then the practical person comes out! We plan to pay off our one and only credit card when we get our tax return. We were set to put our Florida house back on the market, but have decided to keep renting for at least 6 more months. It doesn't seem like a good time to get back in the housing market. As far as Christmas, I don't really think we spent less than any other year. I just did it little by little as I found sales. We have cut back on a lot, but we still eat out and have cable tv and internet. Granted we don't eat out at fancy places. If we have to, we will cut that out too. For right now, we have to have some type of entertainment or we would all go nuts!

[HRAAB]

We've always been frugal. We have no debt, so nothing to work on there. I watch the household budget closely, but after going over it recently, I saw quite a few places where I'd gotten a little sloppy. So, basically, we're going to tighten up some on discretionary spending. My dh's job is very shaky. If he's unemployed we will cut out piano lessons, drive one car. We don't have a lot of monthly expenses (satellite TV, etc.) except our cell phone and internet. We wouldn't get rid of those right away.

 

I'm always looking for things I've missed. Reading threads like this always gives me some good ideas to ponder.

 

Janet

[Donna]

I still feel the need to make a few changes because we never know what the future will bring. I work part time, husband is retired from his original job and picks up some home repair work from time to time (this is slowing but usually does this time of year so I don't know if it is the economy or just the usual). We have a good amount in savings, pay off credit cards monthly, and our only debt is our home (which we are trying to sell but doesn't look like that is happening any time soon...luckily we aren't in a hurry with that.) Some things we are doing are...

 

1. Keeping things simple for Christmas...everyone is getting things they need and cutting out all the extraneous stuff (kids have too much anyway). Also cutting out gift giving to adults in family.

 

2. I have a basement and freezer stocked with food just in case...have actually kept a little stockpile since 9/11. We even did a little canning/freezing this year when we found produce on sale.

 

3. I am resisting the impulse buys especially on curriculum and children's clothing. I tell myself to wait a month and if I still want it, then I can have it. That works because in a month's time I have talked myself out of whatever it was.

 

4. We are living more frugally overall- less eating out and ordering pizza, less shopping, making groceries last longer and using up foods before they go bad, finding recipes for less expensive meals, etc...

 

No major changes, just being more cognizant that times could get hard and more frugal overall.

[Quad Shot Academy]

We are having no financial troubles and my husband's business is doing great :001_smile: but in case of major inflation, I have stocked up quite a bit of food. 50lbs of beans, 40lbs of rice, lots of canned fruits, juices, oatmeal and soy milk. I fear the $20 loaf of bread. Other than that, I have cut my driving back as much as possible to keep gas prices falling I am trying to spend money normally to keep the economy going. :tongue_smilie: I also have various seeds and a sweet potato at all times in case a summer garden becomes necessary.

[homeschoolmomtutu]

Cutting a few extras (ie not eating out for lunch when we are out of the house for class...we pack instead) and staying out of debt ( we try never to incur credit debt)...not much, just small things, we are pretty good about frugality to start with...

[Parrothead]

I'm sort of torn between the desire to conserve, cut expenses, quit lessons, not buy curricula, skip Christmas, and the knowledge that if we all do that, a depression is absolutely guaranteed.

 

If we all decide not to buy Christmas presents, that's likely to put a lots of people out of work in retain and manufacturing. If we all quit music lessons, then all the musicians can be added to the unemployment rolls. If we all stop eating at restaurants (and we never ate out a lot and still don't, but I am being theoretical here) then that's a lot of failed businesses.

 

I am trying to be fiscally responsible but I am also trying to focus on the big picture and to remember that my hairdresser (just as an example) is economically dependent on people like me continuing to get hair cuts. It won't help the economy for millions of people in service industries, retail, and manufacturing to lose their jobs.

:iagree:

[cillakat]

we keep the heat set on 55.....all the time. it took some getting used to but it's easier now than it was a few weeks ago:)

 

I've dramatically changed my spending. At out for the first time in a month of so, just yesterday. My grocery spending has been cut in half, or less.

 

Much much much less in classes at the homeschool group. I hate that part though. I like supporting the teachers and my child loves the classes. The reality is though that my husbands business is down by 1/3.

 

Katherine