Financial Crunch Puts Pennies in a Pinch
While the Notorious B.I.G. may have sang about "Mo' Money, Mo' Problems", I am not so sure the rest of us are feeling like more money would be such a problem right about now. Consumer confidence is at its lowest in several years and the general outlook on the economic future for most people seems dismal thanks to rising food and gas prices, inflation, a sluggish job market and the ongoing housing crisis. Housing prices have bottomed out in many cities across the US and now the Illinois attorney general has filed a suit against embattled lender Countrywide alleging that the company engaged in "unfair and deceptive" practices that resulted in many homeowners taking out risky mortgages beyond what they could realistically afford. Some have countered that everyone has their own personal responsibility to borrow responsibly, but others wonder if lending companies and the glut of easy credit card offers are only preying on desperate consumers. On the In the News message board, this debate is in full swing, with even a few great tips and not-so-obvious facts about credit thrown in. rtmom07 sees both sides of the debate, saying:
"...the ultimate responsibility lands with those who take out those mortgages, or use the credit cards. However, I stick with my vulture analogy - they don't necessarily kill the animal - but once it is down, they pick at it mercilessly."
Regardless of where the fault lies, the fact is many people are feeling the squeeze of financial strain and those that were already in trouble are sometimes having to make really tough choices. And we're not just talking about foregoing the daily latte at Starbucks or skipping movie night. iVillagers are struggling to make ends meet and cover basic necessities due to cost of living increases, job loss and stagnant wages.
The Cost of Health
On our Migraines and Headaches message board, ifrog7 is suffering from migraines, but cringes at the thought of an increased dosage in her medicine:
"I called my Neuro, he wants to see me tomorrow at 8am. I am sure he will want to up my Topamax from 300 to 400. Which I can't afford to buy."
Others are finding themselves in the same situation -- unable to afford the treatments that they need to even be able to continue their normal routines. Several on the Antidepressant Medication message board are finding that even with insurance, the co-pays alone can be difficult to manage.
Financing Fido: Pets or Fuel?
As much as our pets are part of the family, they are an added expense and when push comes to shove, are they too much on the household budget? The ladies on the Family Fitness board are discussing several recent articles about an increase of animals being taken to shelters due to owners' inability to pay for their care. Most couldn't imagine giving up their furry companions, but ginger.cookie offers another point of view:
"Sadly, I think it's a lot more complicated than just either/or. Hopefully people would make cuts where they can before resorting to giving up on pets, but one can only cut so much."
Wedding Bill Blues
It's no secret that weddings are big business -- and a big chunk out of the wallet for most. Even simple ones can rack up hefty bills. Brides on our 2008 and 2009 Weddings communities are talking about how they'll be able to afford a celebration without straining their bank accounts. cl-liamattra is worried about how travel costs will impact her guests, but has come up with a few ideas:
"I think we're going to talk to all of our out of town guests, and see if we can't plan some sort of carpool for the trip. Even if we only get four to a car, that's still saving quite a bit of money. For those who might have to fly, or want to fly, we plan on monitoring the airlines for seat sales, so we can let them know when a deal comes up. It seems like the least we can do for our family and friends who want to be here."
With all the misery that seems to be out there, there is some hint of a silver lining. We've seen a lot of interesting tips and sharing of ideas from a ton of users on how they're managing in tough times. libraone asks the In the News crowd, "What are you cutting back on to cope with rising prices? " and received a lot of interesting replies. While most haven't found the need to take any drastic measures just yet, people consistently are cutting back on their entertainment, minimizing their driving time and retooling their grocery lists. We obviously have seen a ton of sticker shock at the gas pumps, and now we're really starting to see that fuel price impact other goods.
Not-so-expensive Tastes
You may be able to cut back on your entertainment budget, luxury items or even how much you drive, but everyone needs to eat. So how are iVillagers minding their money at the supermarket? We recently highlighted some great tips from our users on how to save money at the grocery store and in the past several weeks, we've seen hundreds more being posted as everyone is looking to get and share their advice on what works for them -- and what doesn't. On the Budgeting message board, melz128 lets us in on her food bill secrets; while on the Frugal Living board many are noticing their eating habits are actually changing, with several users reporting that expensive convenience foods and meat have been the first to go. For those that aren't willing to give up meat just yet, GardenWeb's Cooking forum offers up some tips for buying local and in bulk to save money.
On the Cooking 101 message board, cl-k_roni asks: "My question of the day is...how can $195 in groceries only take 4 trips from car to kitchen?" Of course she also shares some of her grocery list and some interesting price comparisons. In the same discussion, tallgirlcolo relates what she's doing differently:
"As for groceries, I have almost completely stopped shopping at the health-food stores and I have really cut back on what I buy at the regular store. I only buy certain things on sale (chicken breasts, seafood, frozen blueberries, fresh fruit) and I am becoming a madwoman with the weekly grocery circulars. I will hit all three major stores to save money on whatever they have on sale.
I am also making more one-pot or one-dish meals with leftovers in mind. I'm trying to stretch ingredients into more meals. "
Finally, no matter how dire the situation, I can usually find at least one member who can find the humor in it all. This time it's a quote from happysj56 on our 100 Pounds or More to Go community, in a discussion about rising gas prices and saving money she relates:
"I live in the city so already walk most places. I'm telling everyone that I'm afraid the price of shoe leather is going up, so I'm stocking up on shoes - every time I go to Marshall's, I buy another pair!"
Well that's one way to justify a shoe habit.
How is the current state of the economy affecting you? Are you feeling the pinch and cutting back? Do you feel you'll have to make some tough decisions in order to keep your budget afloat? Chime in and share your story -- as well as what you're doing to get by.
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i think the most import thing to cutting back is to sit down and write out all your expenses. everything from gas to drive through once a week. i think when you actually put it in writing you will be shocked at how much we spend on things we don't need. some secrets of mine once you get ride of all the extras, well i try to plan my meals but what is on sale. I stop in the local good will for cloths that i need for working out. i mean the shirts are only two dollars. also i'm in the process of losing my baby weight so it is a nice way to get something that you don't feel bad about wearing it for only a couple of months.
I don't eat meat at all, that saves a ton of money.
I spend under $15 for any gifts I buy for family or friends.
I don't do homemade gifts either, because making things can wind up costing more money than just buying something on sale at the store.
Well I've started using coupons for groceries which I never use to do!
I only drive where I have to because of the gas prices!
We watch our consumption of use in the house, like if your not using it TURN IT OFF!
...and i'm sure i'll keep thinking of things until then.... ;0)
Consolidating car trips. Buying more fruits and veggies. Got a new car which averages 30-35mpg hwy. Started container garden---cherry tomatoes, regular tomatoes, fresh basil, peas, zucchini. Not eating out as much. If we do, we try to look for specials or get lunch or breakfast, which tends to be cheaper. Have a low water usage washer and dryer. I am buying gasoline with cash to forgo the high interest rate. Transferred balance on one CC to lower interest fixed rate CC with 5.96% interest for two years. Gave up soda and sugary drinks. Biggest challenge is grocery bill.
I have had to do this penny pinching since I was suddenly thrown out of my contract job after 911. I have not regained my lost salary level since then, so here are ways that I have learned to adapt over the past 7 years, and btw, many of these things I will continue even when (not IF!!!) my income ever jumps back up to a decent level.
Maybe some of my cost-saving measures will help those of you just entering Sticker Shock Land:
1) Buy second hand clothes for 90% of clothing. For new clothes, only buy on major discount. However, I found second hand clothes from nice second-hand shops often are higher in quality than the cheap stuff sold at discount stores. I am still wearing dress pants I bought for 15$ that way four years ago, and people still complement them!
I buy new socks, underwear, etc. (usually on sale) and new shoes (I also have had some favorite shoes resoled). I find that used shoes have been worn to suit somebody else's feet, and so I avoid used shoes.
For stuff like handbags, belts, scarves-- I find something much nicer for under 20$ (once a beautiful belt for 5$) at the second-hand clothing stores. Check major cities in your area for different ones... some are pricier. Some will also buy your clothes, if you find that all of your new habits have resulted in a weight loss that makes your clothes too baggy!! : )
2) I take advantage of the "free gym" -- I have (used) rain pants to wear, and 80% of the time I get myself to work rain, sleet, or shine on my own power-- walking for 50 minutes, biking for 20 minutes, or a mix of the two for 30 minutes. Sure beats buying gas & a gym membership.
I carry a change of lightweight work shoes in a backpack (and sometimes my entire work outfit, too, the Starbucks bathroom, etc. near my workplace works as a changing room if I feel it is too weird to show up and change at the work bathroom)
Often I will purposely leave the house an EXTRA HOUR early, though, so I can avoid rush hour (more pleasant for me) and arrive before most of my coworkers (so no commute-to-work transition embarrassment). Plus, this gives me an automatic cushion.
3) Re bike commuting: I purchased my bike used. I keep a pump at home. I wear a helmut and looked for non-main road routes. I plan my travel for non peak hours. Hint: Sometimes the best bike route or walk TO work is not the best one for returning home. Experiment, and be willing to be adventurous. I look at it as an adventure instead of an imposition. Rain pants over work pants if it is a light rain or snowy. Otherwise, put work clothes in a plastic bag, then in the backpack, and ride to work in gym shorts (summer) or rain pants (winter) and then change. I
f I am biking to a date, I sometimes bike in my nice shoes, but sometimes I'll bike over in sandals and keep them in a plastic bag in a large purse or messanger bag. (backpacks aren't so great on a date) I'll wear my hair "up" under the helmut, and then arrive nearby early, find a restroom, and "do" my hair.
4) I still go to health food stores for hormone free meat, b/c my health is my wealth! I'll also go for items that I've observed are actually cheaper there. But I, too, mix it up and follow the sales for food.
5) I suggest going out for tea or dessert when a more fortunate friend wants to meet for lunch or dinner.
6) I buy day-old baked goods and breads and freeze them when I think that I may be running low on cash soon.
7) I pay my bills (especially phone) before I go food/clothes/anything shopping.
8) I sell dvds, books, cds that I can live without when I am running too low.
9) I buy books & cds used when necessary, but rarely buy them.
10) I donate things that don't fit me anymore to friends or charity, because even though I'm poor now, it still feels good to give stuff to others.
11) I have 2 roommates even though I am nearly 40, previously had my own place when I was paid more, etc.
12) I color my own hair; I stretch it out by washing just with conditioner a few times a week, and sometimes skip a wash if I know I'll just be home that day.
13) I buy the cheap 99 cent VO5 shampoo and conditioner as backup for when I run out of my 4$ "nicer" shampoo but don't want to rush out and buy more
14) I save 89 cent yogurt containers to bring brown rice in for lunch at work; can just heat in microwave there.
15) I reuse all of my grocery bags as trash bags
16) I buy the "store" brand for a lot of stuff when it really is cheaper
17) I use library computers if I can't afford online access for, say, 3 months in the summer when people are sending fewer emails anyway...
18)I have some canned and frozen food on hand for those times when I'm broke and waiting to get paid-- not my favorite stuff, but stuff I know I'll eat
19) I only wear makeup on special occaisions, but I always wear sunscreen and moisturizer
20) I trade with friends
21) I read instead of going out; joined a book club (get the books at a library or used)
22) I no longer use my income as part of my self-worth measuring system....
23) I wear my glasses at home to cut down on contact-lens wear
24) I sometimes wear the same thing twice if it isn't really smelly, dirty, or noticeably "already worn" -- just to a different place than wear I last wore it.
25) I get "nice" haircuts only sometimes; I grew my hair long & can get away with cheap haircuts at least half the time.
26) I sometimes wear pants during the week of my period so I don't have to shave my legs for one week-- and I am poofy then anyway so wearing pants and long skirts doesn't feel like much of a sacrifice then.
27)I only buy what I can carry home in my backpack on my bike or easily on foot-- sure does cut down on impulse buying and requires more planning for purchases.