This long after the recession, still afraid to spend money

[Anonymous]

While many others seem to have gotten back to normal last year buying cars, boats, vacations, and other things like that, I am still hesitant. 2008 was a big wake up call for me and even though I was over extended, I was fortunate enough to have a high enough income to weather it. But one illness or job loss and I would've been in bad shape.

And that feeling sticks with me to this day, even with the low interest rates for loans. There are many big purchases I'd either like to make or things I need to get done on the house, but I just cannot bring myself to spend that kind of money. I've become addicted to watching my savings grow and debt decrease and still don't feel like I have enough to feel fully safe. Especially with the uncertainty going forward with work tied to the federal government. I know no longer can feel assured that I can easily get another job should something happen to mine like I used to.

[Anonymous]

Anonymous wrote:While many others seem to have gotten back to normal last year buying cars, boats, vacations, and other things like that, I am still hesitant. 2008 was a big wake up call for me and even though I was over extended, I was fortunate enough to have a high enough income to weather it. But one illness or job loss and I would've been in bad shape.

And that feeling sticks with me to this day, even with the low interest rates for loans. There are many big purchases I'd either like to make or things I need to get done on the house, but I just cannot bring myself to spend that kind of money. I've become addicted to watching my savings grow and debt decrease and still don't feel like I have enough to feel fully safe. Especially with the uncertainty going forward with work tied to the federal government. I know no longer can feel assured that I can easily get another job should something happen to mine like I used to.

I can't tell if this is a humble-brag or a someone asking for help. Maybe a rare cocktail of both?

[Anonymous]

Follow your gut.

[Anonymous]

It might be worth it to meet with a good financial advisor who can review your finances and help you feel better about saving or spending. We met with one through dhs work and it was very reassuring (though we are still frugal!)

[Anonymous]

Anonymous wrote:Follow your gut.

+1! If in doubt, wait a while.

[Anonymous]

I get what you are saying and feel the same way. I just said to my husband last night that this is the first year I feel like we are starting to be more secure financially. That said, if you have the cash make sure you are doing home maintenance (assuming you own) and have a safe car. You also should dress/look your position at work.

[Anonymous]

Anonymous wrote:I get what you are saying and feel the same way. I just said to my husband last night that this is the first year I feel like we are starting to be more secure financially. That said, if you have the cash make sure you are doing home maintenance (assuming you own) and have a safe car. You also should dress/look your position at work.

+1 Definitely keep up on maintenance costs. Can get very expensive if you do not.

That said, the recession changed us permanently too. We will never live in a home that takes two salaries to afford. (That's what saved us in 2009.) We are also working on paying down some major health care bills, and once those our gone, the credit cards will hit the mothballs. The car is already paid off. Won't get another one for at least a decade since we mostly take the bus. Moving to an all-cash lifestyle as soon as it's possible.

[Anonymous]

My 94-yo grandmother lived through the Great Depression and is also still afraid to spend money.

[Anonymous]

I see people all around me spending, spending, spending. Sometimes little stuff at Target, sometimes big stuff (3 week vacation in California 18 months ago that they are still paying off at 19% interest rate). Unless you are saving 20-30% in your retirement funds you probably don't have enough $ to spend at a pre-recession rate. Few people could afford that kind of lifestyle before the recession, and few can now.

[Anonymous]

Anonymous wrote:While many others seem to have gotten back to normal last year buying cars, boats, vacations, and other things like that, I am still hesitant. 2008 was a big wake up call for me and even though I was over extended, I was fortunate enough to have a high enough income to weather it. But one illness or job loss and I would've been in bad shape.

And that feeling sticks with me to this day, even with the low interest rates for loans. There are many big purchases I'd either like to make or things I need to get done on the house, but I just cannot bring myself to spend that kind of money. I've become addicted to watching my savings grow and debt decrease and still don't feel like I have enough to feel fully safe. Especially with the uncertainty going forward with work tied to the federal government. I know no longer can feel assured that I can easily get another job should something happen to mine like I used to.

...And this is bad because???

This is a good thing not a bad thing OP.

[Anonymous]

The people I know aren't buying boats and cars. They're still hunkered down. As am I. Just spending enough to be comfortable. Plus vacations to see the relatives. But, our family has never needed a lot of shiny things. As long as we're comfortable and happy.

[Anonymous]

I was a junior in college in 2008. I still think jobs are going to be temporary or nonexistent. I don't spend money. I check my bank accounts obsessively. The recession impacted a lot of people, just like the Great Depression did. My spending is on track with how my grandmother spends.

[Anonymous]

I think the biggest thing that continues to hang over my head is the expensive house I bought back in 2005. So much of my money has been tied up into paying down the mortgage that my savings isn't as high as it should be. The good news is that I know I can always rent out all or part of the house for more than my mortgage so it's nice to have a fallback plan if I lost my job, etc.

But yeah, some may seem to have forgot about 2008 and are back to their normal spending ways, but many of us still are not. The irony is that if all of us did go back to our pre-recession spending, the economy would really be going gangbusters.

[Anonymous]

Anonymous wrote:I think the biggest thing that continues to hang over my head is the expensive house I bought back in 2005. So much of my money has been tied up into paying down the mortgage that my savings isn't as high as it should be. The good news is that I know I can always rent out all or part of the house for more than my mortgage so it's nice to have a fallback plan if I lost my job, etc.

But yeah, some may seem to have forgot about 2008 and are back to their normal spending ways, but many of us still are not. The irony is that if all of us did go back to our pre-recession spending, the economy would really be going gangbusters.

True. It's good to be careful about spending but consumers still need to spend to improve the economy.

[Anonymous]

yolo