Not feeling the econmoic crunch? Adapt anyway.
11 comments so far
My family and I are blessed in that we haven’t been directly affected by the economic hardships many are facing, for which I’m grateful. That being said, it’s still something that lingers in the back of my mind. People are losing jobs and, in some cases, having to take huge pay cuts if they’re fortunately enough to find new employment. Not only is getting started at a new job a big change, but adjusting your lifestyle to meet a reduced paycheck can be a huge challenge too.
Why wait?
This got me thinking. Why not start making some of the changes you’d have to if your salary was cut 20% instead of holding onto a lifestyle that may not be sustainable? (And I don’t mean in the environmental way.)
You’ve probably heard about how much people don’t realize they’re spending on things like coffee, eating out, entertainment, and all those other little things that add up. I think there’s a lot of wisdom in making some cuts even if you don’t have to because you still have your job.
Trim now, benefit…now
Conversely, one would argue, “I’ve gotta live it up while I still can.” Ah, yes. The temptation to do so is strong. My wife and I struggle with the same mentality when it comes to driving.
When gas was $3.75 per gallon we were much more careful about where and when we drove than we are now that gas is $1.37 a gallon. Instead of driving less and pocketing the cost savings, we tend to drive more despite the fact that we were getting along just fine when we were being frugal. Horrible, isn’t it?
There are quite a few benefits to making lifestyle changes now, voluntarily, instead of later out of necessity:
• More money. Not that there’s anything wrong with trying to climb the corporate ladder/get a raise, but it can take a while. By changing our lifestyle you’ll have more money immediately.
• If you do end up needing to make cuts, you will have 1. already adapted your lifestyle and 2. have money in the bank from starting early.
• You’re already that much closer to a permanent change in behavior. Think of your grandparents who lived through the great depression. After it was over, when they were back on their feet and had more discretionary income, they still lived frugally. What was it grandma used to say?
Use it up,
wear it out,
make it do,
or do without.
That’s good advice. Especially when it’s done voluntarily.
Try cutting back in some areas. Make some voluntary sacrifices and stick the savings in a jar for a rainy day. Not only will your world not crumble around you if you go without your coffee or Blockbuster subscription, but it may actually help if your world does start crumbling because of a lost job.
Think quick: what kind of things could you cut right away to help adjust your lifestyle to be more sustainable? Leave word in the comments.
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Monday, January 12th, 2009 at 7:00 am and is filed under Finances. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
My husband and I have been doing this recently. Even though both of our jobs are pretty secure, these economically challenging times have caused us to step back and re-evaluate where our money is going.
We cut back on Christmas gift giving this year by doing a Secret Santa exchange with family members. Instead of everyone buying gifts for everybody else, each person had to buy for just one. It saved us all a fortune!
We are also eating out less and catching movies when they come to the dollar theater instead of when they first come out.
wow… where do you live that gas is only 1.37? Ours went down to 1.69 but is now back up to 1.89.
We are in the same situation…jobs pretty secure but we do lack in having emergency savings. Spending 20% less is a great idea.
I took a 10% pay cut at work last year, and it has made things tough. But it’s also helped us identify some areas we can trim our spending. Hopefully we’ll have bigger income margins by next year, but I’d like to stay in the habit of keeping expenses down.
We are also in the same place. We’re fortunate in our jobs and haven’t been hit directly with this crisis. But we’re friends with people who have. We’ve started cutting back on spending, putting more into savings, and having regular financial conversations so we have something to fall back on if the need arises. We’ve stopped eating out every day (that was WAY too often) and are now on about once a week, which is far more reasonable (and healthy).
A friend and I were talking last week about how the universe strives for balance. With so much excess and strife and struggle in the past 10 years, we see this economic crisis as sort of a reminder to get “back to basics,” to calm down and slow down and enjoy life as it is more. Now is really all there is. Tomorrow never comes; it’s always now.
Thanks for the insights.
Thanks everyone for the comments!
@Rebecca – A good idea. It saves money and you don’t have to worry about all that shopping! :)
@Joy – Utah.
well, i am a frugal type of gal at the best of times… but recently spent $ on a coffee machine so i can have a nice coffee each morning rather than either none (which is the totally cheaper option) or rather than buying one at the shop.. it didn’t take long to ‘pay it off’ for the savings i made rather than the purchased one. the coffee is my daily treat. we’ve also gone through the house and gotton rid of stuff we just don’t use – either 1. donated it to family 2. donated to charity or 3. sold on ebay. what a difference and without the clutter we are so much more clear headed – love it.
Good advice! I have often thought that saving money is almost a lost art! Loved your insight! You never know what may be around the corner!
It’s always smart to think ahead. Good advice here. ;-)
Make it DO or do without.
Not “Due.”
Seriously.
Good catch.