How is your PERSONAL economy?

[FrugalFish]

We're hanging in there okay and trying to keep things in perspective. We've definitely changed some habits and have less expendable income. Time will tell if we can continue to save as much as we were before- we are attempting just that by cutting back some. We haven't bought much more than necessities for the past couple of months, and it's been weeks since we've had dinner out; that's the part that gets old for me, I love to dine out and hate cooking 7 nights a week. Not eating out, I'm losing weight- but I can't afford to lose all that much Oh well, from what I've heard, restaurant portions are getting smaller, so maybe eating out wouldn't help me maintain my weight so much anymore!

So yes, it's affecting us, but we have everything we NEED and hopefully a little extra here and there.

[LivingAlmostLarge]

Poorly in some ways. Definitely less than we started working a few years ago. The raises haven't kept up. But we still have jobs, so I'm not complaining about it!

And are we cutting stuff? Not really. But we will soon.

[Joan.of.the.Arch]

It appears our income will not increase as much as the cost of living this year. We've always been careful with money, so we can hang in there just fine. Frugal as we are, we are also well situated to be able to cut back if need be. For example, we could go car free.

[aida2003]

Knock, knock on the wood, we're doing fine.
We just need to continue hoping that we have our jobs (they're safe, but you never know about an 'out of the blue') and I hope our baby will be well and I'll be able to go back to work (it's more like for brain challenge than money ).
Like everyone we noticed that we're spending more for gas and food, but other than that everything is going fine. I decided to reduce our taxable income by increasing my 401k contributions. We also increased our taxable investments. And if everything goes fine, we'll chop our savings step by step and pay off our mortgage. Since CD rates are awfull this year we'd rather pay off our mortgage.

[MonkeyMama]

Knock on wood, indeed.

This year has been a pretty good year for us. A lot of our bills have been going down. (Cable went down just because. City switched to metered water and our bill has gone down considerably, etc.).

Our child graduates preschool in a month and will free up $300/month cash.

The other ones graduates in 2010 so our cash flow should increase considerably over the next couple of years. Likewise, a second job won't cost so much or won't need to be incredibly flexible. So it has been kind of weird as many around here (in "foreclosure central") are struggling, we seem to be going the opposite direction. As we graduate from one-income living. We are just kind of getting back to where we were before kids with our income and assets.

No debt but our mortgage, which is very reasonable and far cheaper than renting. No plans to borrow anything.

Healthcare has been a huge financial issue in recent years. This year are expenses stayed steady, which was a welcome change from the usual 10% - 40% annual insurance increases. It feels nice to get a breather for one year...

So all around, 2008 has been good to us.

[Tree0164]

We are doing ok. I do worry about my husband's job because they have laid off a number of workers in the last couple of months. He feels that his job is safe-let's hope. I do find myself tightening up a bit because he is in sales and the commission checks have been less than last year. However our budget does reflect hills and valleys. I use the extra for sinking funds such as paying our water bill, insurance, etc.

I know this past holiday weekend we stayed close to home-rather. We did some nice meals at home and invited friends over for margaritas and chips rather than going out to eat.

[StressLess]

It's very weird, in a good way. I keep "waiting for other the shoe to drop." We've been a one-income household for eight months now. We're paying our own health insurance, we're paying a little [Edit: extra] against principal on our mortgage each month, we take money out of savings for emergencies and then go back to building it up again. I've bought a new computer and upgraded to DSL from dial-up. Our only debt right now is the mortgage and about $28 on the credit card, for slacks I'm not sure I'll keep.

OTOH, I'm getting more careful about how I drive, and trying to waste less food. (It's hard to use up fresh things in a two-person household, before they go bad.) I've started keeping track of food and gasoline expenses in Quicken again, and so far it looks like we aren't spending any more than we were two years ago. We've just downgraded some of our purchases to make up for higher prices. For example, frozen juice instead of cartons, Aldi saltines instead of Toasteds, and so forth. I do still try to buy low-fat dairy products and whole-grain things whenever I can.

Also, I'm waiting for a veterinary and a medical thing until I know we have the cash on hand. Surgery to remove a bothersome lipoma on our dog's leg, and a colonoscopy for me.

Being we have the high deductible insurance, I'll have to spring for most if not all of the colonoscopy bill. I remember seeing old movies when I was a kid, where they talked about saving up for operations. It sounded so old-fashioned and backward to me, that someone would live with a medical problem for months or years while saving up for specialists, tests or treatments. And now I'm doing it!

Something weird IS going on in the economy, and we've definitely been affected, but so far we've been able to adjust enough to handle it.

[savingmama]

These are the effects I think the economy have had on our family personally:

Positive effects:
-One of the benefits of the economy is that our mortgage lender offered us a refinance with no closing costs. We were able to save 1.125% a year on our mortgage rate.
-With the stock market going down, I see that as a benefit for us. Since we have just started building our retirement plan a few years ago and have no plans for retirement for 35+ years, stocks being down right now means we are buying stocks "on sale". And even with the economy the way it is, it has not made a difference to amount we put toward retirement. My husband's work automatically deducts 10% for retirement and then matches about 13.5%.

Negative effects:
-Increase in gas prices has caused me to try to limit my driving so I stay on budget. Also with extra income I make a percentage now go to adding to my gasoline fund.
-Increase in cost of groceries. I have added a little to this fund. I just continue to shop the way I did before. Look out for bargains and stock up!
-Savings rates have gone down so I don't get as much interest every month
-In the area around us there has been a lot of layoffs, so the housing market has taken a hit. Currently we are planning on being in our home three more years, so we will see how the economy is in a few years when we have to sell. Fortunately we didn't buy 0 down on our home, so we have equity to lose when we sell, verses having to cough up the money out of pocket.

No effect:
-Even though the economy job market right now is shaky, especially the area I am in, we don't have to worry about my husband losing his job. He is in a surgical residency and unless he does something illegal and lost his license to practice, we are good.

[gamecock43]

I'm hanging in there. There are alot of large life changes taking place in the next year (wedding, maybe,hopefully buying a house..we will see) and our normal lifestyle is very turbulent (FDH plays independant baseball and so job security is low, paychecks are very minimal). Sadly, it seems that the costs that are associated with this lifestyle are rising. We move (change states move) at least twice a year (3x this year and its only June) and it seems that rent is going up, and gas is really hurting us. I am moving from FL to MN next week and just get overwhelmed picturing the amount of gas that will be. So historically we have always lived within our means, and we will continue to do so...but this year might be the first year that we dont break even on the year. Costs associated with this lifestyle might outweight the paychecks.
To top it off baseball season is reaching the halfway point and once sept comes FDH will once again try to line up 'off season' work, odd jobs to get by until the season starts again. That pay very unpredictable and hard to count on. I like having a small cushion to get us through the off seasons, but so far for the season we are in debt on the credit cards to pay for moves, gas ect and though I am expecting to have them paid off in 2 paychecks...we are just behind. (compared to where we normally are at this point of the year) This season money-wise has been much tougher than past years.
For the 1st time in many years I am feeling a strong need to get a job- but that means staying behind in our home base state for the season and not seeing DFH for months at a time. The cost of airfare to visit, getting a proffessional wardrobe (you mean jeans and tanks are unacceptable, I've been wearing them everyday for years) and paying rent on 2 locations might not make that a viable option either. I have been delaying doing the numbers. I keep telling myself that we will catch up someday.
To add insult to injury- I normally feel secure about the long term future by $$ we dont touch invested in the stock market- its been in a nosedive. And the money we saved for a downpayment has been in a money market for the past few years and the monthly interest payment has dropped from nearly $200 down to about $40.
So on all levels, Im worried. Long term retirement stocks are doing poorly. Shorter term savings are not earning much interest, and immediate paychecks are not getting us by anymore.
Sorry so long, I guess Im more worried than I realized. now I'im bumming.

[zooracer]

hmmm,
seems like pretty much everyone is doing just fine, thank you very much.

As usual, the media is very effective at pushing those trigger emotions...the most sensitive of which is, fear.

But, reality is often nowhere to be found in or around the news studios

We are also fine. We ARE in the process of downsizing vehicles...paying much more attention to mpg.
Bicycles are impossible where we live.

Life goes on and this country WILL recover.

I will take this opportunity to encourage everyone to BUY AMERICAN

[MonkeyMama]

Well, I have to add the economy has been hit hard here. The layoffs are hitting massively here. I personally feel extremely odd woman out when talking to my friends in their 20-40s. Most of them have been living paycheck to paycheck for years, and are being laid off. Throw in losing their homes to foreclosure too...

A lot of businesses closing down in our neighborhood as well. Though we certainly live in the thick of the housing bubble. (I can't help but wonder if a lot of these businesses were financed with home equity - probably so).

I do admit I am rather suprised at the optimism on this thread. (Or maybe not. Preparedness means less to be afraid of).

[disneysteve]

hmmm,
seems like pretty much everyone is doing just fine, thank you very much.

As usual, the media is very effective at pushing those trigger emotions...the most sensitive of which is, fear.

But, reality is often nowhere to be found in or around the news studios

I do admit I am rather suprised at the optimism on this thread. (Or maybe not. Preparedness means less to be afraid of).

MonkeyMama - I think it is a couple of things. I think zooracer is right and the situation really isn't as bad as the media is making it out to be (what else is new). As for the optimism on this thread, you are looking at a select group of people who choose to be responsible with their money and live below their means. In that situation, economic forces simply don't impact us that much. We just ride the tide and know that we'll benefit from the eventual recovery.

[LuxLiving]

I agree, disneysteve, that because we as a group try to live below our means that gives us an edge.

With the push of a couple of keystrokes we could pay off our house out of our MM fund and w/our current level of expenditures be able to live on under $10,000.00 a year, which our retirement money could provide for a goodly number of years (not adjusted for inflation purposes). And that's for four adult people living in a nice, heat/cooled home. Would it be easy or living 'well'? Doubtful. Hubster would have to quit work as we couldn't afford a lot of gas, or car insurance, but he's close to retirement anyway.

Yearly
3720.00 utilities including cable tv & internet & landline
660.00 house taxes
1000.00 house insurance
3600.00 food which is an increase over what I spend now!
_______
$8980.00 which would leave 1,020.00 for clothes, gifts, & any taxi rides, plus medical & dental expenses. Not ideal, but in my mind it helps me as a woman who hasn't worked outside the home in a good number of years a bit of comfort level thinking that I could possibly get a job to keep a roof over our heads & the wolf of hunger from our bellies if push came to shove.

Shanks mare would have to be put to footing it though!

That he keeps working helps us pay for life insurance on him, health insurance for the two of us (the boys pay their own), and we get to travel some and have money for some of the niceties that life has to offer. Two nice paid for recent vehicles currently sit outside, with money put back to replace them. I'm feeling okay. Not elated, but Hubster did just recently get a raise. Maybe a bit 'antsy' but that's thinking the entire U.S. economy is a house of cards that could implode upon itself and take everyone down with it. Thanks alot you fear mongering media types!!

Oh yeah, my 2 1/2 acres would have to go back to a jungle motif as I couldn't afford to keep it mowed, but yeah, in a crash situation, we'd be okay.

For now, I'm like many of the rest of you here. I try to keep mindful of our spending habits and cut the corners where I can. Gas has been a pain in the bohunkis this month though. However today I see that gas in our neighborhood has dropped by 2 cents a gallon! Ehh, for this, I should be thrilled??? Not!

**The reason our taxes and house insurance are so low is that buying less house than the realtors say you can afford thing!

[cicy33]

I think also the reason why we are seeing that so many of us are okay is because we are on a saving money place. Lots of people are not looking at it the way we do or being careful the way we all are. So there are lots of people that are hurting very badly and the media is not totally wrong. We are the ones that are going to be okay when gas does hit $5 and $6 per gallon cuz we are learning how to cut other areas, whereas these other people will just whine and not know what to do.

[LivingAlmostLarge]

Cicy33, you hit it on the head. It doesn't hurt as much when you are used to living lean. When you are used to nicer stuff it sure does hurt.