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Recession Obsession

How are YOU responding to the economic changes?

by Single Ma  |  1305 views  |  5 comments  |        Rate this now! 

I don’t know why, but I saw this image and it made me laugh. Check it out. I'll wait...

*twiddling my thumbs*

Did you see it? Crazy huh? LOL

A “recession” special? HA HA Two hot dogs and a drink for almost $3? Are you serious? Or is it a “special” because tax is included? Maaan, this is BS! I can buy a pack of hotdogs, hot dog buns, and a 2-liter Dr. Perky for almost $3. LOL

So what’s prompting these ridiculous marketing ploys?

Gas is predicted to be $4 everywhere by this summer. Regular unleaded is over $3.75 where I live. People are responding. I see quite a few walkers and bikers in the morning.

People are losing their homes left and right. Buy a house you can’t afford under normal lending standards and that’s what happens. Not really surprised. Responsible, savvy property owners are responding. Rental prices are going up.

Grocery prices are skyrocketing. Bought any fresh produce, eggs, milk or cheese lately? Rumor has it, there may be a shortage of certain items. Farmers are feeling the pinch and nut cases are responding. It has gotten so bad, folks are trying to hoard rice. WTF!

If you want a "big picture" of how economic changes are affecting the average person, the New York Times has a spending graphic that illustrates “All of Inflation’s Little Parts.” There’s no doubt we’re in a recession, but the million dollar question of the day is: how will YOU respond?

Me? I don’t plan to do anything. Fear breeds fear and panic will only make things worse. Therefore, I will continue doing what I’ve already been doing:
  • Remain consumer debt free.
  • Leverage my good credit rating only when absolutely necessary.
  • Continue to save/invest 20 percent or more of my earnings.
  • Maintain my marketable skills and make sure they are current AND competitive.
  • Establish multiple streams of income.
  • Create a spend plan to manage my money instead of my money managing me.
  • Live beneath my means.
  • Eliminate unnecessary “wants” (i.e. cable, Tivo, landline, iPhone, gadgets, etc.).
  • Just say “no” to lifestyle inflation (increase income, maintain standard of living).
  • Avoid frivolous purchases.
  • Practice delayed gratification.
  • When shopping, hunt for bargains.
  • Continue driving my fuel efficient, paid for, Honda Accord.
  • Grocery shop with a list.
  • Buy generic brands when appropriate.

I could go on and on, but you get the picture. The key is to apply responsible financial habits every day of your life, not in “response” to a crisis situation. I know we can’t control everything, but being “proactive” can reduce the fear and help you make better decisions.

About the Author

A working (single) mom and author of the personal finance blog Fabulous Financials @ http://fabulousfinancials.com

Read more by Single Ma




5 comments so far...

  • Recession Proof Yourself!
    Ignore media and turn off the TV! The media wants us to feel bad so shut it off. And live by principles that recession proof yourself. A recession is an opportunity if you take it that way, an opportunity for you to be an entrepreneur and do something you love on the side, for example. Recession Proof Yourself!

    Flag as inappropriate Posted by Francesca on 28th May 2008

  • I agree that it is fear that is causing all this huba-lo!

    We continue to live. Yes we make cuts where needed as prices rise. We remain responsible in our decisions. We pay our mortgage first.

    I don't believe that this "recession" is long lived... I think we will snap out of it relatively quickly. Be smart. Shop smart. Budget. Save. Live.

    Flag as inappropriate Posted by Yes, Mommy has to work today on 22nd May 2008

  • Great stuff, SingleMa! We are trying to live along roughly the principles you lay out here. It's not easy - temptation is everywhere. :) But I'm learning to live on less. Agree in particular with not being sucked into lifestyle inflation. I remember once hearing the saying "the cost of living is what you make." It's so true - human nature to keep accumulating more and more, KWIM?

    Flag as inappropriate Posted by Diane on 16th May 2008

  • Hey, at least you recognize the problem now. It's never too late to fix it.

    Flag as inappropriate Posted by Single Ma on 15th May 2008

  • Eating "out" gets expensive. My son has been ill lately, so we're not eating as much junk food. The end result is better health and less money spent. Why didn't I start this earlier? Geez.

    Flag as inappropriate Posted by Daisy on 15th May 2008

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