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STRATEGY #8 TO SURVIVE A DOWN ECONOMY
By Kevin M
A robust bank account has traditionally been considered to be a desirable asset to have, even a sign of prosperity. But in the past 20-30 years, with easy credit and almost predictable double digit returns in the stock market, conventional thinking came to view traditional savings as boring and unproductive. Being “fully invested” became the new mantra.
But given the current state of the economy, and of credit in particular, it’s a good bet that many people followed the new directive to their own detriment. Alas, credit lines can be shut down like a faucet, and stocks and mutual funds are really speculative investments and not true savings.
In 10 Ways To Survive a Down Economy (published on Christianpf.com June 1) we listed ten strategies to help you deal with the bad economy. Our topic for today, Strategy #8:
”Accumulate savings. Make it a lifetime activity. This is the best insurance you can have against sudden income disruptions. At the risk of being redundant, you will need to lower your cost of living in order to do this.”
Previous generations viewed savings as a necessary part of survival, almost as important as earning a living itself. But today is a new world, with new rules—or is it?
Continue reading Savings as a Survival Strategy →
STRATEGY #7 TO SURVIVE A DOWN ECONOMY
By Kevin M
In 10 Ways To Survive a Down Economy (published on Christianpf.com June 1) we listed ten strategies to help you deal with the bad economy. Our topic for today, Strategy #7:
Reduce your cost of living. What ever level you’re at, this effort will be crucial in the years ahead, much more so than it’s been in the past. Don’t assume a quick return to the easy money debt of the recent past will once again make thrift unnecessary. That thinking is a huge part of how the economy landed where it is now.
Simply put, it may be time to lower our sights in regard to our standard of living. Does that mean we lower our goals and make a conscious choice to accept a lesser life? Not at all! It would be better to say that it’s time to transfer our aspirations away from acquisition of the things we hope to own, and redirect ourselves toward goals in careers, savings and life in general.
Our lives after all, are what we do, not what we own.
Continue reading Reduce Your Cost of Living and Thrive →
By Kevin M
A family living in a McMansion loses their home to foreclosure. An overbearing manager earning a six figure salary loses his job in a department shut down. The (former) most prosperous family in the neighborhood is forced to close down their business for lack of sales; there’s a for sale sign on their front lawn. A couple who drove high end cars and traveled often is facing bankruptcy. A women in old clothes approaches us in a shopping center, tells us her husband has lost his job several months ago, and they have no money to feed their children.
How do we react?
To the family who lost their McMansion: They had no business buying a house that large.
To the overbearing manager: It’s about time he got his—I remember when…
To the former most prosperous family in the neighborhood: They always thought they were better than everyone else—maybe this will teach them a lesson!
To the couple who lived the good life: It serves them right. They lived like money was no object, and now they’re in bankruptcy; they should have saved their money like I did.
To the women in the shopping center asking for money for food: I don’t have any money with me. (She’ll probably use it to buy liquor or drugs if I give it to her.) Get a job! Isn’t there an ordinance against panhandling?
Continue reading Lending a Hand to the Economys Victims →
By Kevin M
The cost of living has been rising relentlessly for decades, and while we tend to notice it less during the good times, it all hits home hard in times like these. Forget the official numbers that deny the existence of inflation, if you’re middle class, working class, a struggling business owner, and especially if you’re retired, you know the real story from the trenches on the front lines.
Sure food costs have been bouncing up and down in a range, and gas prices are about 40% lower than they were a year ago at this time, but what about everything else? What about property taxes, utilities, health insurance and all things education related? What about movie tickets, theme parks, medical co-pays and car repairs? Our auto insurance just increased by more than 20% because of state mandated add-ons to cover uninsured motorists. 20%–in 2009—how’s that for timing?
Continue reading What Are We Doing to Lower Our Cost of Living? →
By Kevin M
If you’re serious about reining in your household expenses, shopping in thrift stores is an option that needs to be investigated. Thrift stores offer an opportunity to buy clothing for pennies on the dollar compared with the cost of retail. Shirts $2, pants $4, typical! If you work in a business where mode of dress is a major issue, or you have a family who seem to burn through clothes with each turn of the seasons, saving money on clothing could be a major boost for your budget, and thrift stores are the perfect place to do it.
The Basic Setup
If you’re new to thrift stores and accustomed to the shopping experience provided by mall stores and prime retailers, they can be a bit of shock. Usually they’re set in shopping centers that are best described as less than prime, and the stores tend to have something of a bare bones look. This is of course as it needs to be; in order to offer the lowest prices, thrift stores cannot operate in triple A space. But if you can get past the store’s appearance there are true bargains to be had.
Continue reading A Thriftier Way to Dress →
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OutOfYourRut Disclaimers
General: Any information in regard to money, credit, personal finance, or in regard to any other monetary topic, provided or shared on OutOfYourRut.com is presented for information and entertainment purposes only and does not constitute financial advice. It is intended to provide general information only and does not constitute personal financial advice in regard to your specific circumstances...MORE-->
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Lending a Hand to the Economys Victims
By Kevin M
A family living in a McMansion loses their home to foreclosure. An overbearing manager earning a six figure salary loses his job in a department shut down. The (former) most prosperous family in the neighborhood is forced to close down their business for lack of sales; there’s a for sale sign on their front lawn. A couple who drove high end cars and traveled often is facing bankruptcy. A women in old clothes approaches us in a shopping center, tells us her husband has lost his job several months ago, and they have no money to feed their children.
How do we react?
Continue reading Lending a Hand to the Economys Victims →