This Recession Obsession
I don’t know why, but this image made me laugh. A “recession” special? HA HA Two hot dogs and a drink for almost $3? Are you serious? Or is it a “special” because tax is included? Maaan, this is BS! I can buy a pack of hotdogs, hot dog buns, and a 2 liter Dr. Perky for almost $3. LOL
So what’s prompting these ridiculous marketing ploys?
Gas is predicted to be $4 everywhere by this summer. Regular unleaded is over $3.75 where I live. People are responding. I see quite a few walkers and bikers in the morning.
People are losing their homes left and right. Buy a house you can’t afford under normal lending standards and that’s what happens. Not really surprised. Responsible Savvy property owners are responding. Rental prices are going up.
Grocery prices are skyrocketing. Bought any fresh produce, eggs, milk or cheese lately? Rumor has it, there may be a shortage of certain items. Farmer’s are feeling the pinch and nut cases are responding. It has gotten so bad, folks are trying to hoard rice. WTF!
If you want a ‘big picture’ of how economic changes are affecting the average person, the NY Times has a spending graphic that illustrates “All of Inflation’s Little Parts.” There’s no doubt we’re in a recession, but the million dollar question of the day is - how will YOU respond?
Me? I don’t plan to do anything. Fear breeds fear and panic will only make things worse. Therefore, I will continue doing what I’ve already been doing:
- Remain consumer debt free
- Leverage my good credit rating only when absolutely necessary
- Continue to save/invest 20%+ of my earnings
- Maintain my marketable skills and make sure they are current AND competitive
- Establish multiple streams of income
- Create a spend plan to manage my money instead of my money managing me
- Live beneath my means
- Eliminate unnecessary “wants” (i.e. cable, Tivo, landline, iPhone, gadgets, etc.)
- Just say “no” to lifestyle inflation (increase income, maintain standard of living)
- Avoid frivolous purchases
- Practice delayed gratification
- When shopping, hunt for bargains
- Continue driving my fuel efficient, paid for, Honda Accord
- Grocery shop with a list
- Buy generic brands when appropriate
I could go on and on, but you get the picture. Now, if I had to, I could downsize my lifestyle and live on next nothing. It wouldn’t be a painful transition either. Been there, done that, not too far removed from it. Take the girl out the ghetto, but the survival skills last a lifetime. LOL!
No seriously, the key is to apply responsible financial habits every day of your life, not in “response” to a crisis situation. I know we can’t control everything, but being “proactive” can reduce the fear and help you make better decisions.
~*~*~*~*~*~Work to achieve, not to acquire.
And as always, BE FABULOUS!
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Totally agree on all points! I wish the “news” channels would give stories on economic history to put this into perspective for people.
Wait, that wouldn’t get the same attention as “Rice Scarcity!” does, duh what’s wrong with me.
Seriously though, if folks would just read “Naked Economics” or “The Birth of Plenty” they’d realize how silly this all is.
Oh SingleMa - I love your advice!! It’s pretty common sense though - I just don’t see how people aren’t getting it - yes, things get expensive but if you can’t afford to do/buy something, DON’T! Duh! But I just wanted to say that i’ve been reading your blog since January ‘08 and i’m awfully inspired by you. Keep being fabulous!
By the way - have you ever read “Cheapest Family in America”? I picked up the book over the weekend and it’s pretty good advice. It tends to get extreme, but the moral is clear-cut. I recommend it highly (that goes for all of the fellow readers out there!).
~Moneychick
(who is trying to remember for the life of her the link to her blog…)
Ok..I finally updated my blog. Some visitors would be lovely! (link is above). Leave a lil note if you do swing by and say Holla!
“It has gotten so bad, folks are trying to hoard rice. ” LOL
I think some people are blowing this out of porportion, good thing for u Single Ma,
you will not downsize too much, because you own your on car and have moola in the bank
“It has gotten so bad, folks are trying to hoard rice. ” LOL
I think some people are blowing this out of porportion, good thing for u Single Ma,
you will not downsize too much, because you own your on car and have moola in the bank.
I cannot say the same for most~
Great Advice! I enjoy reading your blog. I just started last week, and find it very inspiring. Thanks!
Great attitude to have! I’ve been reading your blog for little over a week now. I think its very inspiring!
jon stewart had a funny segment on his daily show about the media coverage of this recession. it’s definitely gotten out of hand (as has many of things that the mainstream media covers nowadays-in my opinion). i think the most important lesson to be learned from this bad economy is to not be so greedy! that goes for banks and lenders trying to make money without using common sense and good judgement and to the consumers that wanted to buy huge homes knowing darn well they couldn’t afford them. good thing most of them bought big SUVs to go with their big houses. maybe they can sleep in them when their homes get foreclosed on. i know that’s a little harsh but i have very little compassion for people that don’t hold themselves accountable for their actions. ignorance (of mortgage lending rules/regulations, budgets, etc.) is not an excuse.
Like you, not much is changing about my strategy. I’m doing better now than I ever have, and I know from my student years how to do more with less, so there’s no fear here…
The recession is all you hear about. It has only affected me in the price of gas and groceries. However, the amount I spend is entirely up to me. I take public transportation to work, driving only on the weekends to the part-time gig. At the grocery stores I am not very brand conscious. Whatever items I need I buy the cheapeat ones, except for Velveeta Shells and Cheese, LOL.
I will continue to do as before. Pay down my debt, while increasing my income and no incur any new debt.
With all of the media coverage on the recession, I can’t help but ask myself if the “recession” is getting worse because of the coverage and causes people to panic.
That’s a good list for good times or bad. You could probably even shorten it more to just one of your items: Live beneath your means. Keep it up.
As usual, I agree with you, except on the one point -
“Maintain my marketable skills and make sure they are current AND competitive”
I have many friends and a few family members with excellent resumes, good experience, education, networking, contacts, etc - who have done everything “the right way” in their job searches who are just plain stuck. That does seem one area that is truly being impacted by this recession right now - or at least that is what employers are using as the excuse for hiring freezes and layoffs. It’s not so bad if you already have a job right now and can sit tight until things improve, but for those who are unemployed it is painful out there, especially in the lower and middle management areas. I’d love to hear what advice you’d have, as someone who just found a great job during this recession!
Current marketable skills are just one piece of the puzzle. They do not GUARANTEE success and that was not the intent of my statement. I can write a book on how I’ve excelled in my career, but that doesn’t mean the same would work for everyone. My success has been a combination of education, career choice, career related skills, people skills, assertiveness, determination, networking, and a little luck. I’d also venture to add, perspective and having a “can do” mentality.
For example, I have a problem with your statement “…who have done everything “the right way” in their job searches who are just plain stuck.” Those words are not a part of my vocabulary because I never, and I mean NEVER, feel STUCK. I’m also flexible and a risk taker, so I do what I have to do to work around any given constraint. I do not allow external limitations to control my destiny. Further, there is no “right way.” I do what works for ME based on MY vision, MY circumstances, and MY goals.
Perhaps it’s my perspective and my way of thinking that sets me apart, I don’t know. The same goes for poor vs. wealthy mentality. If you want to be wealthy, you make choices that will lead to a path of wealth. If you want career success, you make choices that will keep you on the fast track. However, if you always feel broke, then you’re broke. If you want to live paycheck to paycheck, then you will. If you want to blame the economy, the government, or someone else for your problems, then do so. Or per your statement, if you feel stuck, then you’re stuck. But I don’t believe it, so I call BS. It’s all about perspective and changing the way you think.
I’ve done many things in my career that the average person wouldn’t want to do. I make financial choices in my everyday life that the average person would frown upon. I can respect individual choice because what works for me may not work for everyone. However, regardless of individual choices (or circumstances), current marketable skills are necessary to survive in ANY career field during ANY economic environment. They may not guarantee success, but without them, you are guaranteed to fail. [-SM]
Preach!!! @ your last comment and the post!!
But why you gotta put the iPhone in there ?? I luuuuurve it long time! LOL
Great post!! I’ve been reading your blog for years but have not commented in awhile…Your information is so much common sense but some, like me, need things spelled out…