FOX 5 MONEY

[Anonymous]

To the PP, I think it's different lives AND different priorities. For those who are much more well off than others, then I am sure that they lead very different lives (from the cars they drive to the activities that they participate in and pay for to the amount of free time some, mostly mothers, have). As for priorities, they can afford to have different priorities and I don't see anything wrong with that. For others who are less well off, well, there are probably fewer choices as to what to prioritize--you gotta eat.

Anyway. That's neither here nor there and while an interesting topic to explore, it gets away from the original point of this thread.

So far, our spending and lifestyle have not been affected, but we are watching the market and are getting a little nervous. We're not sure what to do with our investments. Through our financial planner, we invest a small amount of money each month which goes into mutual funds. We're now wondering if we should keep that money in cash or if we should still continue to invest, since theoretically, we are buying low and hope that it will pay off when the market rises. So, for us, we're a little nervous about our savings and investments and are thinking about changing that strategy to make sure that we are saving enough to protect and provide for our family. We are also thinking of buying a house soon, so we are watching the market carefully to make sure it's a good time to buy but also to protect our savings for the downpayment.

[Anonymous]

We were poor before the recession hit. Strangely, now that the economy is slowing down, DHs business and mine have been picking up steadily! This year has hit record high for us. We finally have the 3 month salary put away (never had that before). We also could not afford a house before the values fell, and were stuck in a 2BDR apartment for years. Now that values have fallen, I've finally put my family of 5 in a decent house as of last month. I have been pinching pennies for a LONG time...but now I can afford to put DCs in ballet and Tae Kwon Do. I still watch what I spend, but I feel more secure than I ever have.

[SurelyYouNest]

Fascinating thread. I signed up for a Buy-Nothing Challenge for the month of April as a combo enviro/cost savings move:

It has been very illuminating to me to buy almost nothing (outside of basic categories she set, see below)

>>Anyway, this means none of the following:

* No new clothes
* No new gadgets
* No new furniture or housewares
* No salon services
* No makeup
* No tools
* No whatever the hell else people buy

Why did I only give you one day to prepare? Because I didn't want you out there binge buying in preparation for the month. I want you to really focus on whether or not what you are buying is a necessity or something frivolous.

If you must absolutely acquire something non-edible or not essential to growing your own food or for your survival, then you must borrow, barter, or buy it used. If you end up buying something new that is non-essential, I'll be hosting a weekly Sunday Confessional for you to justify your purchase. So, just think about having to confess to the world what you couldn't hold off on buying.<<

Check it out:

http://crunchychicken.blogspot.com/2008/03/buy-nothing-challenge.html

[Anonymous]

Totally agree that gas prices SHOULD go much much higher, which would help the environment and force us to give up big cars.

[Anonymous]

I'm a Consumer/ Money Producer at Fox 5. We would like to know how the economy is affecting our viewers. Where are you cutting corners? What are your concerns? How are your friends and family members being affected? If you have any personal stories you would like to share, ideas or suggestions, please send me an email: [e-mail].

We're here to help protect your pocketbook.

Thanks in advance,

Katy Adams

[Anonymous]

Anonymous wrote:

Anonymous wrote:Read the entire Labor Report here:

http://www.bls.gov/news.release/metro.nr0.htm

Very interesting, the region is mentioned again as being one of the very top earners in new jobs. 26,000 new jobs were created in the DC region in the month of February alone. Sure prices have gone up, but it's not like we are suffering any sort of terrible callamity. Anyone ever travel overseas? I just came back from a country that had $7/gal gasoline and that country is much poorer than our, but they are at least smart enough to drive tiny cars, I'm talking REALLY tiny.

I shouldn't write this...but husband can't wait for gas to be over $4 a gallon. He's sick of all the big SUVs on the road-which he claims are status symbols anyway. I've heard co-workers complain about how much gas costs and how much more they're spending a week on gas-well-you have a husband, one child, and you're driving a Jeep Commander, which only gets 13 miles a gallon, and your commute is 45 miles each way. And you want me to feel sorry for you. Europeans have to drive small cars, gas costs too much. Or they walk, or take public transportation.

We're a wasteful country. It makes me sick. The big house, the big car-for what? So your neighbors think you have it all? But then your mortgage payment goes up because you got an interest only loan, or an 80/20 with high interest rates, just so you can have that big house, that you really can't afford-I do not and will not ever feel sorry for these people. Do you think Warren Buffet lives like he has billions of dollars...the second richest person in the world? Nope. We live in a 1900 sq. ft. house-2 adults, a toddler, a dog, and 2 cats. And guess what, we're not ashamed and we love our home. It's time everyone wake up, and live within their means. I know bad stuff happens to really good people-I'm talking about the people who want everyone else to think that they're the richest family on the block. I know quite a few people that believe and live like that, and they're getting burned. But when a job loss or illness strikes, I'd give the shirt off my back.

Here, here! You took the words right out of my mouth! I say keep raising gas prices. Only when Americans are hit in the pocketbook will they change their ways.

[Anonymous]

I'm the 00:51 poster (the one that someone else thought did a joke posting). If you saw our account statements, you would not be laughing so hard. But if you saw the way we live, you might also be a little surprised.

I think we already nearly did the Buy-Nothing Challenge in March. Last month, the only non-edibles for us were 6 pr of the next size up undies for DS, his 2008-9 school deposit, some paint, our mortgage payment and our accountant's prep fees.

For April, I'm not sure how to dodge the non-edible tax bullet on the 15th. Not a wise choice of months!

Anyhow, in direct response to Katy's questions, our primary cost cutting is on big-ticket stuff.

We have always eschewed many of the luxuries that people assume you need to live the 'good life', even though these would be easily within our budget: No TV or cable, no makeup (hate it), no manicures, haircuts 2x per year, no highlights/color services, no maid service, no lawn service, no full time nanny, no Starbucks, no fancy cell phones, *only* one car (which is not often used), and one of the most modest houses on our upper middle-class street. Not having had nor caring much about these things means that you don't have to worry about giving them up.

What we really 'consume' is free time and the opportunity cost of making more money by working more hours. DH & I got really sick of working 80-100+hrs a week and living in an expensive rathole in NYC, and moved here for a better quality of life and lower cost of living. So, I guess that was our most dramatic downsizing move.

We currently live mostly on his generous & stable PT salary and draw on our investments for larger things, like school, vacations, home improvement. Since our investments have been hit hardest, these are the areas that we are cutting back on. The non-negotiables are funding school and DS's college trust. I would return to work at anything legal in a heartbeat before letting go of these two things. We're not close to being there yet, thank goodness...

BTW, Completely agree w/ the PPs re. gas prices. But Americans have a way of spending lavishly on credit, which buffers any true hit to their pocketbooks. Don't you think gas prices will really have to go up far more than they have to convince someone to trade in their Hummer? Aren't they awkward to drive & park? I'll take a Smart car any day... Or, actually, a Tesla (once they figure out how to accomodate a car seat) http://www.teslamotors.com/ --- how cool is that!

[Anonymous]

PP-it's only going to take gas being over $4 a gallon to shake things up. If people complain how much it costs to fill up at $3.20-$4 will most definitely hit below the belt. Having said that, no one will be able to sell their used SUVs even if they wanted when gas is over $4-no one will want them.

[Anonymous]

Anonymous wrote:Not different lives, different priorities in lives, I think.

Let's try to keep this nice. No snarky comment just because one person's saving money means going to Target less, and another's is doing fewer major home improvements.

[Anonymous]

Anonymous wrote:We were poor before the recession hit. Strangely, now that the economy is slowing down, DHs business and mine have been picking up steadily! This year has hit record high for us. We finally have the 3 month salary put away (never had that before). We also could not afford a house before the values fell, and were stuck in a 2BDR apartment for years. Now that values have fallen, I've finally put my family of 5 in a decent house as of last month. I have been pinching pennies for a LONG time...but now I can afford to put DCs in ballet and Tae Kwon Do. I still watch what I spend, but I feel more secure than I ever have.

What line of work are you in that your business is doing better during the recession? Are you foreclosure realtors?