Recession Recipes for Success!

[maliakei]

The "R" Word. Recession. Whenever I see it or hear it or read about it, it makes me cringe, BUT I'm not one to let this ongoing Recession get the best of me! During the great depression many people starved to death, so we don't want history to repeat itself!

While this economy continues to weaken, stories from people who survived the Great Depression are continually sought in our local newspaper. The period from the Crash of 1929 to the start of World War II left a lasting impact, shaping how millions lived their entire lives.

These people set examples of service and sacrifice, including my own grandparents. They emerged from the crisis appreciative, cautious, brave, tough and prudent. Now the Greatest Generation worries about today's society, wondering whether people can cope with the repercussions of an ever-deepening recession? Finally, when I pick up the paper and read their anecdotes of the 1930s, advice or philosophies, it brings more hope for new relevance and meaning.

Growing up, we didn't have much money, but we managed by hanging in there, staying together, and simplifying:

We always bought generic, went thrift shopping (or sewed our own clothes), we planted a small garden, and we were thoughtful about savings. Even today I do as much as I can with what I already have, and do without stuff I want.

What are your recession recipes for success?

[MoonShadow]

Yes, the R word! We are just now seeing what a recession is and more will be forthcoming.

Let's see, I am basically a non-consumer. LOL I seldom shop as I don't need much. I am not into clothing that much and what I do have covers all the required bases: office, weddings, funerals, dining out, etc. And like you, maliakei, I shop at thrift stores when I can and when grocery shopping buy store brands most of the time. Plus, I seldom ever go up the aisles in a grocery store. I buy from the perimeter. What is usually up the aisle is foods I don't eat. I also don't buy paper goods, cleaning products, or pet foods from grocery stores. I will get these at big box stores when they have sales and stock up.

Driving is another area I conserve. All trips are planned so that any errands needed are done when I have to drive; otherwise, the cars remain parked.

There are so many ways to cut our own personal costs. It is really all about budgeting, staying within budget, saving the rest, and asking yourself if you really need something or just want it. Most of the time we want something and here is where major savings can occur.

[Navigator]

Here's what I've told my adult kids:

Get out of debt...now!

In a year, assets will be worth less and most jobs will pay less.

Debt, on the other hand, will continue to cost you more due to interest.

Sell all the toys quickly even if you can't get what you think they're worth....they'll be worth less later. If you have them (my kids don't have many)...sell the boats, the extra cars, motorcycles, light planes, motorhomes, vacation homes, time shares, collectibles,....all of it. Have a garage sale. Turn everything into cash. And then....

Use the money ONLY to pay off debt. Do NOT use it for a vacation or fun.

And then stop spending & consuming by using all the good ideas in MoonShadow's post.

That's my recipe and I'm sticking with it.

[MoonShadow]

Absolutely, Navigator --- get rid of debt as fast and as quickly as you can. This ultimately ruins budgets and any future spending you might want to save up for.

Now, let's see, about that bi-plane I have up for sale. Any takers?

[LamontCranston]

I am aggressively paying down my debt (it was as high at $35,000 not counting the house three years ago), but at the same time, I'm building a bit of savings. I've had three different $300+ car repair episodes in the past two years and was able to pay cash. No more credit debt.

Check out www.debtgoal.com

We (ex-wife and I) are also paying the college tuition as we go. One daughter went two years to a community college and we're clear without any loans. The other is taking student loans but it's a state school so the costs are more reasonable in the first place.

Smallish house, older cars, cell phone for calls only, no cable TV or flat screen TV. A second hand paperback and a cigar while enjoying some nude sunshine on the deck is fine with me...

[Home Nudist]

I've heard economists say that if you want to have money, live BENEATH your means. That's basically how I've lived. Don't go into debt, spend all of your money, and continue to spend on credit.

In other words: If most people have 4 dollars, they'll spend five. If I have 4 dollars, I spend 2 and try to save 2.

I'm far from rich, prefer simple things and a simple life, and have NO debt. With the cost of living rising, I DO worry about tomorrow -- a lot! (Retired, fixed income, some health issues.) But, when I put my head on my pillow at night, I don't owe anyone a dime.

[maliakei]

Thanks for your Great answers, advice, and shared experiences.

Living in a recession forces people to be more resourceful.

I TOTALLY AGREE about spending less than what you make.
Credit card interest payments are the worst. Glad to be debt free.

[polutropon]

I am doing as much as I can, but it can be very frustrating.

I have several student loans to pay off, but currently only work 11 hour per week as an art class model. I have some money saved from an inheritance, but not nearly enough to cover the costs of my education.

Here is what I am doing to live frugally:

Unless you count refilling a travel mug of coffee at a local party store for $.72 as "dining out," I always cook for myself. (I only engage in this activity if I don't have time to run home in the middle of the day and need a caffeinated pick-me-up, otherwise I just make my own coffee at home in the morning.)

I check all of the grocery store ads as soon as they come out and look for bargains on stuff to stock up on (e.g., soap, TP, nonperishable foods).

I don't have cable or internet in my apartment (I am sitting in a university library whilst typing this). In fact, the only utility bill I pay is for electricity, which has been under $20 per month ever since I moved in.

For entertainment, I mostly read or listen to music. Since I have a Zune, I get the subscription pass to download as much music as I want. I keep up with television shows via hulu (again, at a computer in the university library). I have also recently taken up drawing. Having posed in art classes for years, I decided to try applying what I heard the instructors talking about. So far, I'm not very good, but I've found that most days trying to draw my left hand or furniture is a better way to recharge than watching TV ever was.


What I'm doing to make money:

In addition to posing for art classes, I also tutor students in math, physics, stats, and economics. Unfortunately, business has come to a complete halt this summer, despite the reported higher enrollments at this school.

With degrees in physics and mathematics, I am trying to break into either some flavor of engineering or actuarial science. The latter has the advantage of advancement by examination, so I can study and take exams to improve my qualifications for any jobs that may come available.

To anyone else out there who, like me, is underemployed, I offer the following advice: do something. Whether it's expanding a vegetable garden to lower the grocery bill, picking up a math book to see if algebra was really as hard as it seemed in high school, or volunteering for an organization, do something that keeps you active. I would probably go mad if I didn't have the activities above to keep me focused.

[maliakei]

Stay on the right track. Yeah, it is frustrating at times, but it pays in the long run to be resourceful, determined, positive, and motivated. It helps to take small breaks -- get outdoors for a walk. That has always helped me ease the heavy burdens.