Prepping for a new economy

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Added: Sun. Mar 08, 2009 1:05pm
Posted in: Living

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One thing I have noticed is this: the busier I am, the more organized I get. This is a dangerous scenario for a person who works at home, and not on a rigid schedule. When I went in to the office and my kids were in school, I had to have a pretty rigid schedule. Now, with no schedule and only the loosest time frame in which things must be completed, I find myself procrastinating. A lot.

The problem with this leisurely life (which is still packed with work, but my 50-60 hour work week is now spread out over 7 days and 24 hours) is that it leads to disorganized thought. I don't actively think about dinner until its time to make it and there's nothing in the fridge. So I run to the store and spend frivolously without benefit plan or budget.

I think it's time for change. Our finances are not exactly in jeopardy, but my poor budgeting skills are foolish in this economy. If we do actually enter a full depression, with all its inherent ramifications, then I need to be prepared. Luxury food items may be out of financial reach, so I will need to be able to identify the basics and shop for them. Basics may become more difficult to obtain, so I'll need to understand the alternatives and make sure I can prepare them. (thanks to my mom for teaching me to cook red beans).

My first step to combat the depression that may come is to make a meal plan and a budget. and stick to it. Become proactive and not reactive. What's your plan? How will you prepare for a potential economic storm?

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sherisaid
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Posted 12:25pm March 9th, 2009

Bev, we, too, try to live within our means. We have no credit cards and only a car payment on credit. However, it has been nearly impossible for us to bank any substantial savings, and retirement looms more quickly than I'd like to contemplate. My hub's job is excessively physical and he could be forced to retire early at any time due to an injury, so we have to prepare for the unknown. That unknown eventuality depends on a rapidly shrinking and thoroughly inadequate 401K, a pension plan that's in place now, but how about 10 years from now? Plus social security. We are the youngest of the baby boomers. What's more, I'm diabetic, so I have long-term health concerns. My plan to ride this out includes not only keeping the oars in the water for now, but re-thinking our future…which is getting nearer by the day.

Katy, that's my first step…figuring out where it all goes. I strongly suspect that more than we imagine goes to Gatorade, Red Bull, and things of that nature that my hub uses to get through the heat of the day…but we also drink 6-7 gallons of milk every week…imagine, more than $100 a month on milk alone.
babyboomerbev
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Posted 11:23am March 9th, 2009

Sherisaid,

This will probably sound crazy to you but I am not thinking in terms of recession or depression. Those terms are not a part of my vocabulary. Yes, I know the media keeps talking about it and I know there are many, many people struggling with job loss, home foreclosures, etc.

I was never one to spend lavishly (for the most part) so I don't feel the need to cut back. My current husband and I live within our means so we are riding out the storm on a boat that was provided to us years ago. I feel blessed to have had parents who taught me about thrifty spending. My dad never had a credit card. He always said if he couldn't pay cash, he didn't need it. Although I do have a couple of credit cards, I use them only in EXTREME EMERGENCIES and that hasn't been very often.

There was a period in my life, however, when I started to run amuck with spending but as soon as I got rid of my ex, I came back to reality

Great post!
Katy
GB Staff
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Posted 10:38am March 9th, 2009
A friend of mine couldn't figure out where all her money was going, and decided to take control in a very low-tech way -- shoeboxes! Every day, she and her husband empty out their pockets and wallets and put all of their receipts in a shoebox, and at the end of the week, they total it up.

They were amazed at how much they were spending in stores like CVS, Wal-Mart, etc. for unbudgeted expenses. They thought because they had stopped going out for dinner, bought generics at the grocery store, etc. that they were on top of things, but it was the "oh, I'll just grab a magazine while I'm here" and "oooh, shampoo is on sale!" moments that were killing them.

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