Over the past year or so, there’s been a lot of talk about the economy. Often, whatever is said is mixed with a tinge of fear. It seems that more and more people are out of work. Those that are working may be having trouble keeping up with their mortgage payments and facing bankruptcy. And, in addition, even folks who aren’t worried about staying in their homes have plenty to deal with as they watch the balance in their retirement funds plummet to all-time lows. It’s no wonder people are scared.
Aside from your initial reaction of worry, however, how has the state of today’s economy changed your finances? Or has it? Do you find yourself making financial decisions differently now? I’ve been doing a little soul-searching and talking to friends and family, and here are some common thoughts I’ve found:
Everyone I talked to mentioned that they are trying to avoid unnecessary, major purchases. Appliances and new cars are the last things to be added to anyone’s list of upcoming purchases. In general, I think most people are hoping to wait until the economy appears a little more stable before committing themselves and their savings to anything this large.
Most of my friends and family are also talking about cutting back on their everyday expenses. They’re not all cutting their budgets back to the bare minimum, but they do seem to be making a conscious effort to spend less money. My girlfriends are thinking twice before they indulge in new clothes. My husband doesn’t seem to need as many new tools as he’s wanted in previous years.
Finally, the current economy has certainly done its share to encourage people to evaluate how much stuff they really need. I know I’ve certainly done it; you start looking at your lifestyle and wondering what you could live without if you had to. Cable or satellite television? I don’t need it. New books or movies? The library has them for free. New clothes? I can renovate my old clothes to make them new again. Living without all of the stuff that I’ve always thought I needed can only leave me with more time to spend with my family and more of our income in our savings account.
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8 responses so far ↓
1 Craig // Jan 14, 2009 at 5:32 pm
The economy is affecting most people and because of it people are adjusting. I am trying to do so in my own ways for myself. for example, I try to go out to eat less, and sacrifice a night every now and then of my social life to save some money. Also, I have been avoiding more useless impulse buys like magazines and dvd’s. I am a big reader and have been buying more used books to save a little. What are some things you have been doing?
2 Writer's Coin // Jan 15, 2009 at 8:24 am
I think for us frugal types, not much changes. Honestly, the only thing that’s changed for me is having these conversations with people because now everyone wants to talk about the economy and how to get better deals.
It kind of feels like a small band that you really love getting discovered and going mainstream. Part of you is psyched, but part of you wanted them to remain your little secret.
3 John // Jan 15, 2009 at 11:00 am
We are involving our children in the effort by trying to work together as a family to make simple changes – turn off lights when moving from room to room, turn the water on only half-way when brushing our teeth and not bathing for the next year (kidding about this one, of course). Kids love to be a part of a team and I believe that involving them in frugal efforts will pay off in the long run.
-John
4 Carnival of Personal Finance No. 188: The Jane Austen Edition | Pecuniarities // Jan 19, 2009 at 10:01 am
[...] Not Made of Money presents How Has the Current Economy Changed Your Wants and Needs? [...]
5 Finance Blog » Blog Archive » Carnival of Personal Finance No. 188: The Jane Austen Edition // Jan 19, 2009 at 10:36 am
[...] Not Made of Money presents How Has the Current Economy Changed Your Wants and Needs? [...]
6 Slinky // Jan 22, 2009 at 2:32 pm
The only change I’ve made is to stash a bit more in the emergency fund. My fiancee is still planning on buying a new car soon. He should be able to get a pretty awesome deal!
7 25 Fun Ways to Spend Your Free Time Without Spending Any Money // Feb 10, 2009 at 9:13 am
[...] of the best things that seems to be coming out of the changes in the economy is that we are finding creative ways to entertain ourselves these days without [...]
8 Anonymous // Sep 4, 2009 at 12:39 am
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