On Fri, 06 Mar 2009 11:30:03 -0500, in misc.consumers.frugal-living clams_casino
>For us, the stock market tends to dictate our spending. In today's
>market, it makes little sense to spend any money that could otherwise go
>into / not come out of savings. If one assumes the market will
>eventually return to new highs, spending in today's environment is much
>like getting 50 cents on each dollar.
>Soon after the Bush recession started back in the fall of 2007 (start of
>the market fall), we started cutting back on expenses. I just reviewed
>2008 vs. 2007 spending with the following observations:
>In 2008, we reduced clothing expenditures by 35%, entertainment by 41%
>and overall spending exclusive of savings by 28% in 2008 vs. 2007.
>Groceries and utilities each climbed 14%, but much of that was likely
>due to being home more often (reduced travel) as well as sharply
>reducing eating out. Our hotel stays declined from 24 nights in 2007 to
>just 12 in 2008. Prior to last year, I was a platinum member in two
>hotel frequent stay memberships. This year, I have no appreciable
>status. Auto costs were up 27%, but our driving was reduced 24% -
>probably due mostly to the higher price of gas plus some relatively
>costly, overdue maintenance on an older vehicle.
>Judging from the depths of this recession, I'm sure many others have
>reduced spending in a similar manner. While it's unlikely we'll cut
>spending too much more in 2009, we have again eliminated a 3-week FL
>trip we have typically taken in past years and will likely take just one
>airline trip this year. We also intend to cut out pricey entertainment,
>while watching other costs very closely. Our most recent cost cutting
>was to dump a land line at about $30/mo to a tracfone at 8-$10/ month.
>Since our primary vehicle now has 100k miles, I also intend to soon drop
>it's collision coverage. Guess it'll be another year of staying close
>to home, although that's not really all that bad being in RI.
We are in a deflationary period at the moment but we could go into
hyperinflation sometime in the next few
years. The Treasury is printing money (t-bonds) at an alarming rate.
In a February 27th, 2009 interview John Bellamy Foster stated that the
Federal Government has committed
itself thus far to $9.7 trillion dollars in support primarily for financial
institutions and that the Fed
together with the Treasury has "now has converted itself into what is called a
"bad bank".." by "swapping
Treasury certificates for toxic financial waste, such as collateralized debt
obligations."
clams_casino wrote:
> For us, the stock market tends to dictate our spending. In today's market,
it makes little sense to spend any money
> that could otherwise go into / not come out of savings. If one assumes the
market will eventually return to new
> highs,
Thats arguable, the Nikkei never did and looks like it never will now.
Corse Japan's situation is quite different to the US.
> spending in today's environment is much like getting 50 cents on each dollar.
Thats one way of looking at it.
> Soon after the Bush recession started back in the fall of 2007 (start of the
market fall), we started cutting back on
> expenses.
And everyone doing that is what produced the economy tanking spectacularly.
> I just reviewed 2008 vs. 2007 spending with the following observations:
> In 2008, we reduced clothing expenditures by 35%, entertainment by 41% and
overall spending exclusive of savings by
> 28% in 2008 vs. 2007.
> Groceries and utilities each climbed 14%, but much of that was likely due to
being home more often (reduced travel) as
> well as sharply reducing eating out. Our hotel stays declined from 24 nights
in 2007 to just 12 in 2008. Prior to
> last year, I was a platinum member in two hotel frequent stay memberships.
This year, I have no appreciable status.
> Auto costs were up 27%, but our driving was reduced 24% - probably due mostly
to the higher price of gas plus some
> relatively costly, overdue maintenance on an older vehicle.
> Judging from the depths of this recession, I'm sure many others have reduced
spending in a similar manner.
Yep, the stats show that that is what has happened and that thats what
has produced the economy tanking so spectacularly and all those layoffs.
> While it's unlikely we'll cut spending too much more in 2009, we have again
eliminated a 3-week FL trip we have
> typically taken in past years and will likely take just one airline trip this
year. We also intend to cut out pricey
> entertainment, while watching other costs very closely. Our most recent cost
cutting was to dump a land line at about
> $30/mo to a
> tracfone at 8-$10/ month. Since our primary vehicle now has 100k
> miles, I also intend to soon drop it's collision coverage. Guess it'll be
another year of staying close to home,
> although that's not really all that bad being in RI.
And everyone doing that is what has made the economy tank so spectacularly.
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>market, it makes little sense to spend any money that could otherwise go
>into / not come out of savings. If one assumes the market will
>eventually return to new highs, spending in today's environment is much
>like getting 50 cents on each dollar.
>Soon after the Bush recession started back in the fall of 2007 (start of
>the market fall), we started cutting back on expenses. I just reviewed
>2008 vs. 2007 spending with the following observations:
>In 2008, we reduced clothing expenditures by 35%, entertainment by 41%
>and overall spending exclusive of savings by 28% in 2008 vs. 2007.
>Groceries and utilities each climbed 14%, but much of that was likely
>due to being home more often (reduced travel) as well as sharply
>reducing eating out. Our hotel stays declined from 24 nights in 2007 to
>just 12 in 2008. Prior to last year, I was a platinum member in two
>hotel frequent stay memberships. This year, I have no appreciable
>status. Auto costs were up 27%, but our driving was reduced 24% -
>probably due mostly to the higher price of gas plus some relatively
>costly, overdue maintenance on an older vehicle.
>Judging from the depths of this recession, I'm sure many others have
>reduced spending in a similar manner. While it's unlikely we'll cut
>spending too much more in 2009, we have again eliminated a 3-week FL
>trip we have typically taken in past years and will likely take just one
>airline trip this year. We also intend to cut out pricey entertainment,
>while watching other costs very closely. Our most recent cost cutting
>was to dump a land line at about $30/mo to a tracfone at 8-$10/ month.
>Since our primary vehicle now has 100k miles, I also intend to soon drop
>it's collision coverage. Guess it'll be another year of staying close
>to home, although that's not really all that bad being in RI.