Are you saving more now, since the recession?

[Phoenix]

Just curious!

We seem to be spending a lot less and saving more. It could be because we now live in China and everything (except for housing) is less expensive. Granted the tax here is painfully high and we have all kinds of other taxes to pay across various jurisdictions (thanks to us having lived and worked in various countries

), but it seems that we have more (relatively speaking that is, we still have a loooooooong way to go!) money in the bank now. I'm really really glad for us, since my parents have no money and hubby doesn't come from a wealthy family either (but if we did, we'd rather our respective parents spent their money on themselves), so effectively we have nothing to fall back on and no *real* pension fund to speak of.

The last/ current (whichever your view is) recession has brought home the reality of how many people don't seem to have enough to take care of themselves on a day-to-day basis, let alone their retirement days. I'd *hate* for us not to be able to have at least the same standard of living that we do now.

What about you?

 

[MagsyMay]

If I had any money TO save, yes I would be!!

Unfortunately I am out of work right now, but thankfully my FI''s salary is enough to float us for now. But yes, I am more aware of the lack of saving I am doing because of the recession.

 

[MustangGal]

We actually were savers before the economy took a nosedive, and we continue that same trend now. We had been saving up for baby-related expenses, and now that he''s here and not quite as expensive as I anticipated, we''re still just saving.

 

[tyty333]

Yep, we''re good savers too. I dont know if we are saving more or not but probably the same. We are already
pretty frugal (at least thats my opinion) so I''m not really spending any less either.

 

[soocool]

Actually DH and I have taken advantage of the low stock prices and bought low and have made bucks. Gotta send the DD to college in less than 2 years and she will be getting a car on her 17th birthday.

 

[Abril]

Date: 10/14/2009 1:59:06 PM
Author: soocool
Actually DH and I have taken advantage of the low stock prices and bought low and have made bucks. Gotta send the DD to college in less than 2 years and she will be getting a car on her 17th birthday.

Same here (minus the college and car). Mostly investing. We''re up a tidy sum.

 

[MakingTheGrade]

I''m still in school, but the hubby has been investing. Our spending habits haven''t changed too much. I"ve been buying more gemmies this past year (I blame PS!), but it''s balanced out by my not buying anything else (literally haven''t bought new clothing/shoes/accesory in at least 6 months)

Kind of a side note, but I"ve read that one of the reasons women on average are not as well off fiscally is because they are less prone to investing because they see it as too risky.

 

[MichelleCarmen]

We were saving as much as we could, but lately I''ve become burnt out on being thrifty. Recently, I made a few trips to the mall and picked up some new goodies.

 

[JSM]

When the recession hit, jobs went bye bye! Right now we don''t have enough to save (but we count ourselves lucky that we have food in the fridge and aren''t putting too much on cc). Hopefully DH''s new job hunt goes better, because I REALLY want to go on a shopping spree! I haven''t bought new jeans in almost 2 1/2 years!

 

[zoebartlett]

Sadly, no. My husband was out of work for 6 months, and when he finally found something and we had to move out of state, he took a big pay cut. I also took a pay cut as well when I found a new job. If only money grew on trees...

 

[NewEnglandLady]

Strangely enough, we''ve been spending more.

Before September 2008, we saved every penny we could. We were trying to buy a house with cash and decided that for the final push, we''d invest. We lost more than half of our net worth when the market crashed, which was the hardest knock we''ve ever taken as a couple.

So we completely restrategized and have been a bit less tight with the purse strings. All of our investments are now 100% long term and we set aside more "play" money. We took a few trips to Europe this year, we bought a new vehicle (no loan), we moved to a nicer neighborhood. We decided this summer that we would still buy a house despite not achieving our original goal. We are still saving, but we aren''t breaking our backs to do it like we used to.

 

[Fly Girl]

This recession has brought home the point that in hard times your assets are worth less, but your liabilities are all still there. I purchased my Infinity diamond in August, 2008, and at least that money didn''t disappear. I still have my stone, otherwise the funds would have been invested and lost.

It is the bad times that separate those with prudent financial habits from those with imprudent financial habits. In the good times, everyone has plenty to spend. In the bad times, those that saved during the good times are better off.

The point of saving is to even out life''s ups and downs. We are saving a bit less right now because these are hard times around here. It is during the good times that you can and should be able to save more.

NEL, I''m so sorry to hear about your housing money. My heart goes out to you. It is so hard to watch a dream disappear like that.

 

[joelly]

This year has been spend spend spend for me. It has not stop yet. Because we are getting married in Jan 2010 (sooner than planned), just because we want to begin 2010 as a married couple. Also, we feel that we will be more cost effective as a married couple. Now FI paid for his rent plus expenses and I do too, we hope that once we are married, we can pool income and expenses together.

Soon I'll be buying wedding gown, shoes, and a tiara. Also, FI will spend $$$ on the wedding party. After that we will spend honeymoon driving highway one all the way to San Francisco. After that we will start saving again. FI aimed for a cost-efficient wedding party by putting his extended family to work.

I have savings and still putting into it each month. FI doesn't have any savings so he feels the economy crunch. I always learn to live below my means. So it helps. I will soon infected my FI with my good habit. Sorry if I sound like pompous but I'm just glad that I build this healthy habit long before the economy crash. But I am not as good as I used to be. I find myself indulging more and more.

 

[NewEnglandLady]

Date: 10/14/2009 6:19:40 PM
Author: Fly Girl
This recession has brought home the point that in hard times your assets are worth less, but your liabilities are all still there. I purchased my Infinity diamond in August, 2008, and at least that money didn''t disappear. I still have my stone, otherwise the funds would have been invested and lost.

It is the bad times that separate those with prudent financial habits from those with imprudent financial habits. In the good times, everyone has plenty to spend. In the bad times, those that saved during the good times are better off.

The point of saving is to even out life''s ups and downs. We are saving a bit less right now because these are hard times around here. It is during the good times that you can and should be able to save more.

NEL, I''m so sorry to hear about your housing money. My heart goes out to you. It is so hard to watch a dream disappear like that.

It was a very valuable lesson and I''m glad we learned it when we did. We came out of it a stronger couple with a stronger strategy.

My heart goes out to people like my parents, who''ve worked so hard their whole lives and were on the verge of retirement. Not only did they take a hit, but if inflation sets in, their retirement will be worth even less.

 

[zhuzhu]

I thought China has the lowest possible tax rate in the world! I am surprised to hear about the tax in China!

We have tried to save at about the same rate, however we are also taking advantage of the lower prices offered through home contractors to remodel our kitchen/bathrooms. So we are spending more this year....

 

[chiapet]

I''m usually pretty frugal but I''ve been spending a lot more lately... not sure why. Maybe I stop spending....n

 

[Phoenix]

Date: 10/14/2009 7:25:12 PM
Author: zhuzhu
I thought China has the lowest possible tax rate in the world! I am surprised to hear about the tax in China!

We have tried to save at about the same rate, however we are also taking advantage of the lower prices offered through home contractors to remodel our kitchen/bathrooms. So we are spending more this year....

Oh no, no way! It''s about 30% for DH. I know it''s lower than a lot of other places, like the UK, France, Germany and the US but much higher than Hong Kong and Singapore, where your effective tax rate is about 11-15%.

We also pay other taxes too, so it''s a bit painful in that regard.

Oooohhh, how exciting! Will you be able to post pics of your bathrooms and kitchen once they''re done?

 

[Phoenix]

Date: 10/14/2009 6:59:58 PM
Author: joelly
This year has been spend spend spend for me. It has not stop yet. Because we are getting married in Jan 2010 (sooner than planned), just because we want to begin 2010 as a married couple. Also, we feel that we will be more cost effective as a married couple. Now FI paid for his rent plus expenses and I do too, we hope that once we are married, we can pool income and expenses together.

Soon I''ll be buying wedding gown, shoes, and a tiara. Also, FI will spend $$$ on the wedding party. After that we will spend honeymoon driving highway one all the way to San Francisco. After that we will start saving again. FI aimed for a cost-efficient wedding party by putting his extended family to work.

I have savings and still putting into it each month. FI doesn''t have any savings so he feels the economy crunch. I always learn to live below my means. So it helps. I will soon infected my FI with my good habit. Sorry if I sound like pompous but I''m just glad that I build this healthy habit long before the economy crash. But I am not as good as I used to be. I find myself indulging more and more.

Not at all. You sound very smart.

I think it''s great to have this life habit.

Weddings are expensive, period! Thank God it''s only once in one''s lifetime. You will *def* find that once you pool together your income and have just the one set of expenses, you''ll have a lot more in the bank.

 

[Phoenix]

Date: 10/14/2009 7:17:04 PM
Author: NewEnglandLady

Date: 10/14/2009 6:19:40 PM
Author: Fly Girl
This recession has brought home the point that in hard times your assets are worth less, but your liabilities are all still there. I purchased my Infinity diamond in August, 2008, and at least that money didn''t disappear. I still have my stone, otherwise the funds would have been invested and lost.

It is the bad times that separate those with prudent financial habits from those with imprudent financial habits. In the good times, everyone has plenty to spend. In the bad times, those that saved during the good times are better off.

The point of saving is to even out life''s ups and downs. We are saving a bit less right now because these are hard times around here. It is during the good times that you can and should be able to save more.

NEL, I''m so sorry to hear about your housing money. My heart goes out to you. It is so hard to watch a dream disappear like that.

It was a very valuable lesson and I''m glad we learned it when we did. We came out of it a stronger couple with a stronger strategy.

My heart goes out to people like my parents, who''ve worked so hard their whole lives and were on the verge of retirement. Not only did they take a hit, but if inflation sets in, their retirement will be worth even less.

NEL, I''m sorry to hear about your housing money and abt your parents'' retirment nest-egg too. Good for you and your S.O. to have emerged from it a stronger couple. I wish you luck with your upcoming house purchase. Hope that the stock markets will keep going up and the economy continues to recover, and that your parents'' retirement fund will go back up.

 

[Phoenix]

Date: 10/14/2009 5:54:37 PM
Author: ZoeBartlett
Sadly, no. My husband was out of work for 6 months, and when he finally found something and we had to move out of state, he took a big pay cut. I also took a pay cut as well when I found a new job. If only money grew on trees...

I''m sorry to hear this. I hope things will get better for you both soon.

 

[Phoenix]

Date: 10/14/2009 12:12:28 PM
Author: MagsyMay
If I had any money TO save, yes I would be!!

Unfortunately I am out of work right now, but thankfully my FI''s salary is enough to float us for now. But yes, I am more aware of the lack of saving I am doing because of the recession.

I''m sorry to hear this too. Hope you get a new job soon.

 

[Haven]

We''re saving more now, yes.

Ever since the recession news started creeping in to daily newscasts I started spending less and saving more. I cut out all those little luxuries I used to get, like manicures and eyebrow waxes. Even now that I''m only working part-time we''re putting more away.

 

[Phoenix]

Date: 10/14/2009 11:12:00 PM
Author: Haven
We''re saving more now, yes.

Ever since the recession news started creeping in to daily newscasts I started spending less and saving more. I cut out all those little luxuries I used to get, like manicures and eyebrow waxes. Even now that I''m only working part-time we''re putting more away.

Good for you, yay!

It''d be *very* hard for me to give up mani''s and pedi''s, so hats off to you.

I wish I could give up my bling obsession. I wrote on another thread just now that I only buy bling out of our investments'' gains, but still... if I could give up bling altogether and invest that money instead, imagine how much more we''d have? Bad PS!! PS is def a bad influence!

 

[Phoenix]

Date: 10/14/2009 5:46:47 PM
Author: MC
We were saving as much as we could, but lately I''ve become burnt out on being thrifty. Recently, I made a few trips to the mall and picked up some new goodies.

I''m glad to hear this, MC. It''s good for the soul!

I think it''s darn near impossible to go on a long stretch of saving and no spending. At least that''s been my experience.

 

[Phoenix]

Date: 10/14/2009 2:07:00 PM
Author: Abril

Date: 10/14/2009 1:59:06 PM
Author: soocool
Actually DH and I have taken advantage of the low stock prices and bought low and have made bucks. Gotta send the DD to college in less than 2 years and she will be getting a car on her 17th birthday.

Same here (minus the college and car). Mostly investing. We're up a tidy sum.

Good for you both, Abril and soocool.

Do you think the market will keep going up? I keep hearing that it's due for a small correction and I keep waiting... but so far, nothing!

We didn't invest anywhere near enough when the market was down and are now dollar-cost-averaging. All we need is a small dip so that we can get back in with a lump sum. But I hope that the markets and the economies, worlwide, will continue to go up/ recover. I think it'll be good all around.

 

[Haven]

Date: 10/14/2009 11:15:42 PM
Author: Phoenix

Date: 10/14/2009 11:12:00 PM
Author: Haven
We''re saving more now, yes.

Ever since the recession news started creeping in to daily newscasts I started spending less and saving more. I cut out all those little luxuries I used to get, like manicures and eyebrow waxes. Even now that I''m only working part-time we''re putting more away.

Good for you, yay!

It''d be *very* hard for me to give up mani''s and pedi''s, so hats off to you.

I wish I could give up my bling obsession. I wrote on another thread just now that I only buy bling out of our investments'' gains, but still... if I could give up bling altogether and invest that money instead, imagine how much more we''d have? Bad PS!! PS is def a bad influence!

It is a bit difficult at first, but after a month or so I don''t even miss it. Well, my eyebrows take a lot of time for grooming, but it''s nothing I can''t handle.

The thing that really keeps me going is seeing our savings grow. It''s like I''m in a competition to see how *little* I can spend in a month, and it always feels really good to beat my low.

Besides, I got by in college on $100 a month (excluding meals), and I was ridiculously happy, so I know I don''t need to spend much to feel good.

 

[jewelerman]

Nothing left over to save.But at the end of each month i am still around and trying to improve my situation!

One thing is for sure,I APPRECIATE the jewelry I havent sold or bartered so much more then I ever had before!

 

[NewEnglandLady]

Date: 10/14/2009 11:33:14 PM
Author: Haven

Date: 10/14/2009 11:15:42 PM
Author: Phoenix

Date: 10/14/2009 11:12:00 PM
Author: Haven
We''re saving more now, yes.

Ever since the recession news started creeping in to daily newscasts I started spending less and saving more. I cut out all those little luxuries I used to get, like manicures and eyebrow waxes. Even now that I''m only working part-time we''re putting more away.

Good for you, yay!

It''d be *very* hard for me to give up mani''s and pedi''s, so hats off to you.

I wish I could give up my bling obsession. I wrote on another thread just now that I only buy bling out of our investments'' gains, but still... if I could give up bling altogether and invest that money instead, imagine how much more we''d have? Bad PS!! PS is def a bad influence!

It is a bit difficult at first, but after a month or so I don''t even miss it. Well, my eyebrows take a lot of time for grooming, but it''s nothing I can''t handle.

The thing that really keeps me going is seeing our savings grow. It''s like I''m in a competition to see how *little* I can spend in a month, and it always feels really good to beat my low.

Besides, I got by in college on $100 a month (excluding meals), and I was ridiculously happy, so I know I don''t need to spend much to feel good.

I have to admit that I love the competition of spending as little as possible as well, Haven. I think it''s fun and it always makes me feel like I''ve accomplished something. I also enjoy playing games where if I want something, I find a way to cut back on something else. For instance, if I decide I want a manicure or my ''brows plucked, I walk to the train instead of parking until I have enough to cover the cost. My husband thinks it''s nutso, but I think it''s fun. It makes me feel live if sneaked in a luxury, which is more enjoyable to me than just splurging.

 

[dragonfly411]

You know.... I am trying to save more.... I really am..... but Forever 21 is eating it all away

 

[soocool]

Date: 10/14/2009 11:20:36 PM
Author: Phoenix

Date: 10/14/2009 2:07:00 PM
Author: Abril

Date: 10/14/2009 1:59:06 PM
Author: soocool
Actually DH and I have taken advantage of the low stock prices and bought low and have made bucks. Gotta send the DD to college in less than 2 years and she will be getting a car on her 17th birthday.

Same here (minus the college and car). Mostly investing. We''re up a tidy sum.

Good for you both, Abril and soocool.

Do you think the market will keep going up? I keep hearing that it''s due for a small correction and I keep waiting... but so far, nothing!

We didn''t invest anywhere near enough when the market was down and are now dollar-cost-averaging. All we need is a small dip so that we can get back in with a lump sum. But I hope that the markets and the economies, worlwide, will continue to go up/ recover. I think it''ll be good all around.

You heard how well the DOW did yesterday? Yes, the market will continue to go up.

DD also has mutual funds that we decided we will not use for college since it is still recovering and once it gets to the level it was a couple of years ago, we will also split it to 50% savings and reinvest the other 50%. DD will later have money to buy her own condo or home whenever she is ready.

Funny thing is that I have been investing in the stock market since I graduated college. I wanted a way to pay for grad school when I started to work (I never asked my parents to pay for school, but lucked out and got scholarships and my employer paid for grad school - that was back in the 70s and 80s) and I guess I had a knack for picking stocks. I started with pharmaceuticals and made a killing and later invested in internet and also made a huge killing (knew when to buy and sell). My investing started with $5000.00 and when I recovered this I saved 50% of my investment in IRAs and mutual funds/annuities and then reinvested the other 50% in stocks.

I can''t emphasize enough that the earlier you begin to save and invest the better off you will be financially when you are older.Make sacrifices so that you can save. I owned a condo in my 20s (paid cash) and later sold that and bought a house with DH (he had no money saved up, but luckily no school loans and his employer paid for grad school also). We paid cash for our first house together ( when we made our low bid on the house and said we were paying cash they accepted immediately). We have never borrowed any money ever to finance anything.

Another thing we have been doing is buying land. Builders aren''t building so there is a lot of land available. If you can pay cash for land you can pretty much make any offer. We just purchased 20 acres in an area that was going to be developed, but the builder couldn''t get financial backing for the land and we offered cash.