Not what are you cutting back, but why?

QUINNSCOMMENTARY · Post by **QUINNSCOMMENTARY** » Sat Oct 11, 2008 2:14 pm

Another thread asked the question what are people cutting back on in these economic times?

I ask why?

Have you lost your job, or are you in danger of doing so? Has your income declined for some other reason or do you expect it to?

If you are on a fixed income, there are some good buys out there from cars to appliances, so now is the time to buy.

If you are saving in a 401(k) or other vehicle, why stop? If you have been paying your mortgage all along what is going to change?

In other words, what has really changed in your life that would cause you to cut back other than the fear that is rampant in the press and from politicians?

CARLA · Post by **CARLA** » Sat Oct 11, 2008 2:41 pm

I'm still in my 401K but its not looking good 18% lost so far this year. I don't have that kind of money to lose. Frankly I'm not sure what to do at this point. I'm 5 years from retirement and I'm watching that money disappear rapidly. :-5

[QUOTE]If you are saving in a 401(k) or other vehicle, why stop? If you have been paying your mortgage all along what is going to change?[/QUOTE]

Galbally · Post by **Galbally** » Sat Oct 11, 2008 2:55 pm

I am not able to cut back as I am already on a tight budget, but I worry about my mom, she is on a small state pension, a penury budget is being prepared, and the cost of living is rising rapidly. Also I am well aware that the carnage we are watching on the stock market reflects what traders think is happening to the real economy of goods and services, given that capital lending is glued up, its inevitable that there is going to a severe recession and mass unemployment over the next couple of years. Its already starting to happen here in Ireland, it is fear of the future, you are right, but I think this isn't just a media event, this is a real world problem that we are not going to avoid this time.

chonsigirl · Post by **chonsigirl** » Sat Oct 11, 2008 3:05 pm

I've been cutting back for four years-I have to pay for private nursing, insurance does not pay for it. So, if I want to go to work, I must work enough jobs to pay for a nurse to stay at home with my husband for the primary job. Elder care is much higher than day care for kids!

Gas is higher, food is higher. On budgets that already will not bend much, you watch everything that you spend.

LilacDragon · Post by **LilacDragon** » Sat Oct 11, 2008 3:09 pm

Because my money doesn't go as far now as it did a year ago.

I paid almost $4 for a gallon of milk last weekend that would have cost me $2 a year ago. And we won't even go into the cost of chicken.

I am profoundly grateful that the price of gas has dropped below $3 a gallon in my area. Now maybe I can drive my car again.

QUINNSCOMMENTARY · Post by **QUINNSCOMMENTARY** » Sat Oct 11, 2008 3:23 pm

CARLA;1016588 wrote: I'm still in my 401K but its not looking good 18% lost so far this year. I don't have that kind of money to lose. Frankly I'm not sure what to do at this point. I'm 5 years from retirement and I'm watching that money disappear rapidly. :-5

If you are five years from retirement you should be invested in some stable value fund for at least 50% of your account and a variety of other funds like bonds and some stock funds. One thing you don't want to do is to move your funds out of where you are losing money today AND you don't want to stop putting money in because in a few years that is likely to be your biggest gain.

Your money hasn't disappeared, it's just going behind a few clouds and while the storm may last for a few years, the sun will shine again and your money will be back.

QUINNSCOMMENTARY · Post by **QUINNSCOMMENTARY** » Sat Oct 11, 2008 3:25 pm

LilacDragon;1016625 wrote: Because my money doesn't go as far now as it did a year ago.

I paid almost $4 for a gallon of milk last weekend that would have cost me $2 a year ago. And we won't even go into the cost of chicken.

I am profoundly grateful that the price of gas has dropped below $3 a gallon in my area. Now maybe I can drive my car again.

There you go, gas is coming down, inflation will ease a bit for related items to oil and prices will come down in many areas as retailers scramble for customers.

CARLA · Post by **CARLA** » Sat Oct 11, 2008 3:25 pm

I think this is the hardest of all. None of us got much of a raise this year, if we got one at all. But the cost of everything went up by extreme amounts. I don't drink milk anymore to expensive. At my age not so critical but for growing kids it is.

[QUOTE]I paid almost $4 for a gallon of milk last weekend that would have cost me $2 a year ago. And we won't even go into the cost of chicken.[/QUOTE]

mikeinie · Post by **mikeinie** » Sat Oct 11, 2008 3:28 pm

I may be buying a new boat tomorrow, I am very excited. I got a deal that there is no way I would have been offered a year ago. I am thinking about it over night.

LilacDragon · Post by **LilacDragon** » Sat Oct 11, 2008 4:11 pm

QUINNSCOMMENTARY;1016642 wrote: There you go, gas is coming down, inflation will ease a bit for related items to oil and prices will come down in many areas as retailers scramble for customers.

Do you honestly think that the cost of everything else will go down just because the cost of gas is going down?

If I had any money left after groceries and gas, I would bet you that they don't. The companies that make the things that we need - ie. food - don't care how they make a profit or who they hurt in the process so long as they are making that profit.

CARLA · Post by **CARLA** » Sat Oct 11, 2008 4:15 pm

Looking into doing this ASAP. Boy I hope the money comes back I work to hard to put it away just make me a little nervous. :-3

[QUOTE]like bonds and some stock funds.[/QUOTE]

QUINNSCOMMENTARY · Post by **QUINNSCOMMENTARY** » Sat Oct 11, 2008 4:52 pm

LilacDragon;1016712 wrote: Do you honestly think that the cost of everything else will go down just because the cost of gas is going down?

If I had any money left after groceries and gas, I would bet you that they don't. The companies that make the things that we need - ie. food - don't care how they make a profit or who they hurt in the process so long as they are making that profit.

The cost of things related to oil and there are many, will come down or at the very least not continue to increase. Why do you think the price of a gallon of gas came down, if we follow your logic there would be no reason for the gas companies to lower the price of a gallon of gas just because oil is down, they could just keep the extra profit.

The price of other things will come down because people are buying fewer of this or that and when they start buying again the price will gradually go up. Why can I buy a car today for thousands less than I could a year ago? Because they need to be sold.

LilacDragon · Post by **LilacDragon** » Sat Oct 11, 2008 5:03 pm

QUINNSCOMMENTARY;1016754 wrote: The cost of things related to oil and there are many, will come down or at the very least not continue to increase. Why do you think the price of a gallon of gas came down, if we follow your logic there would be no reason for the gas companies to lower the price of a gallon of gas just because oil is down, they could just keep the extra profit.

The price of other things will come down because people are buying fewer of this or that and when they start buying again the price will gradually go up. Why can I buy a car today for thousands less than I could a year ago? Because they need to be sold.

The price of gas went down because it had too. As the cost of crude goes down, the oil companies have a harder time justifying their record breaking profits. I have yet to hear about record breaking profits of the companies that sell chicken. And as long as it isn't news, they will keep the prices as high as they can.

The simple fact is we ALL have to eat. We all don't have to buy gas. While inconvient - we can always carpool.

BTS · Post by **BTS** » Sat Oct 11, 2008 5:27 pm

Yes it is a buyers market ALL over the world:

Phoenix home price index dropping at 29% annual rate - Phoenix ...

UK National News - House Prices Drop By 10.5%

Haggle for better prices in a tight economy - August 1, 2008

It's a buyer's market. Haggle. In the tug of war with sellers, these days you've got all the pull. .... October 3, 2008 12:00 AM ET ...

Sellers find it's suddenly a 'buyer's market' as economy takes ...Sellers find it's suddenly a 'buyer's market' as economy takes toll on housing. October 10, 2008 - 16:26. Brenda Bouw, THE CANADIAN PRESS ...

Its a buyers market. Where will you be living when its over ...Oct 9, 2008 ... Its a buyers market. Where will you be living when its over? ... Post Date : October 9, 2008 at 10:05 am; Category : Buying a Home, ...

Jamaica Gleaner News - 'This is a buyer's market' - Yesawich ...Oct 10, 2008 ... is a buyer's market' - Yesawich published: Friday | October 10, 2008 ... " This is a buyer's market, people are shopping around and it's ...

Buyer's Market - US News and World ReportBuyer's Market. If you have the cash, the market is ripe for dealing, just do your due diligence. Posted September 3, 2008 ...

along-for-the-ride · Post by **along-for-the-ride** » Sun Oct 12, 2008 10:35 am

LilacDragon;1016625 wrote: Because my money doesn't go as far now as it did a year ago.

I paid almost $4 for a gallon of milk last weekend that would have cost me $2 a year ago. And we won't even go into the cost of chicken.

I am profoundly grateful that the price of gas has dropped below $3 a gallon in my area. Now maybe I can drive my car again.

I have to go into "the cost of chicken" here. I work at a Poultry plant. My boss explained to me that the cost of grain to feed the chickens has gone up, and ofcourse, the cost of gas (truckers)and oil (machinery)had risen as well. Our company employs around 2,000 employees on two production shifts. I've heard talk of omission of the night shift in the future. So far, it's business as usual. We appreciate the folks who do buy our chicken ......we still have our jobs. I am also a customer and I have noticed the higher price per pound. Same can be said of beef and pork.

Sister_Bliss · Post by **Sister_Bliss** » Sun Oct 12, 2008 11:13 am

I'm cutting back, mainly coz I was made redundant and my new job pays less than the old one

I constantly run around the house putting all the lights out that my husband leaves on, I think twice in the supermarket about what I am buying and often put stuff back, don't go out so much either as taxi's in town and back are quite expensive. Also trying to take lunches in to work, as it's expensive buying lunch every day

I'm lucky tho, coz I stay near my best pals, so we regularly get together at each others houses

Flamethrower · Post by **Flamethrower** » Sun Oct 12, 2008 11:45 am

Not cutting anything here.

I've always avoided spending frivolously and don't own any credit cards so if I can't afford it I don't get it.

I've no need to cut back because I live in the fashion which I enjoy and have no reason to reduce anything due to not being ostentatious in the first place.

TheNewDG · Post by **TheNewDG** » Sun Oct 12, 2008 1:17 pm

Im not cutting either. I am trying to spend what I can and put money back into the economy.

mikeinie · Post by **mikeinie** » Sun Oct 12, 2008 3:21 pm

mikeinie;1016645 wrote: I may be buying a new boat tomorrow, I am very excited. I got a deal that there is no way I would have been offered a year ago. I am thinking about it over night.

I got the boat, I got the boat, I got the boat.... I love it, it is a dream come true.

It will be in the water by the weekend.

:D

Lon · Post by **Lon** » Sun Oct 12, 2008 3:32 pm

We are still leaving for New Zealand on the 4th of November and will be there until the 4th of March. We have canceled a two week cruise that we had booked on the Windstar April 2009, from Lisbon to Italy via Barcelona. Glad we had cancellation insurance. Reason for canceling is a pretty good hit on our retirement assests. Day to day living we have not cut back anything.

Chezzie · Post by **Chezzie** » Sun Oct 12, 2008 3:58 pm

mikeinie;1017874 wrote: I got the boat, I got the boat, I got the boat.... I love it, it is a dream come true.

It will be in the water by the weekend.

:D

Awww take me for a ride

LilacDragon · Post by **LilacDragon** » Sun Oct 12, 2008 4:31 pm

along-for-the-ride;1017464 wrote: I have to go into "the cost of chicken" here. I work at a Poultry plant. My boss explained to me that the cost of grain to feed the chickens has gone up, and ofcourse, the cost of gas (truckers)and oil (machinery)had risen as well. Our company employs around 2,000 employees on two production shifts. I've heard talk of omission of the night shift in the future. So far, it's business as usual. We appreciate the folks who do buy our chicken ......we still have our jobs. I am also a customer and I have noticed the higher price per pound. Same can be said of beef and pork.

Well - we eat a lot of chicken so I am doing my best to keep you employed. I will say that I am less likely to buy the $10 package of chicken commonly found at the local grocery and more likely to buy more chicken then I currently need when I find it on sale for $3 or $4 a package.

QUINNSCOMMENTARY · Post by **QUINNSCOMMENTARY** » Sun Oct 12, 2008 7:11 pm

LilacDragon;1016762 wrote: The price of gas went down because it had too. As the cost of crude goes down, the oil companies have a harder time justifying their record breaking profits. I have yet to hear about record breaking profits of the companies that sell chicken. And as long as it isn't news, they will keep the prices as high as they can.

The simple fact is we ALL have to eat. We all don't have to buy gas. While inconvient - we can always carpool.

Because it had to? Who said it had to, unless you mean supply and demand and the resulting pricing? Of course that is it and it applies to everything.

And how do you think the food gets to you, mostly in vehicles that use gas or diesel fuel.

And why do you think the price of food has gone up? Because so much of the growing of food is related to oil.

mikeinie · Post by **mikeinie** » Mon Oct 13, 2008 6:46 am

Chezzie;1017914 wrote: Awww take me for a ride

Sure thing Chezzie, then after we can go out on the boat as well;)

sunny104 · Post by **sunny104** » Mon Oct 13, 2008 6:51 am

we aren't cutting back because we live within our means and we live pretty simply anyway.