Lately, there has been much talk in the media about the recession and how bad things could potentially get. Many people have lost their jobs, homes, cars and for some even their dignity. I have just turned 30 and I have never seen anything remotely close to this in all my many years. However, I do believe that there is light at the end of this dark tunnel and we need to accept the situation for what it is and make plans so that our families can survive. The truth is that everyone of us are affected by what is happening with the global economy in one way or another and it is important for us to be able to pull together to share ideas about things that we have done to weather this financial storm that we are currently in.
I have a family of four (4), my wife and two children ages 4 years and 9 months. I am a software developer and my wife is a teacher. We have to be examining our spending very carefully to find ways in which we can trim some of the fat in our spending so that we meet all our financial obligations. We had to take a good hard look at our spending and make some tough decisions. We accepted the fact that life might be a bit more uncomfortable but we are not going to live above our means. We have decided to eliminate from our shopping list, items that are expensive that are not necessarily needed. We also find that is sometimes best to buy certain items in bulk that will last a longer time before needing to be replaced so as to capitalize on the bulk discount. Consider also that there are certain items that we purchase that have bargain; brands that are of a good quality but are priced significantly less than the named brands. Other things we have done include, conserving on utilities as much as possible. Ensuring that lights and electronic devices that are not in use are turned off, consuming less fast food, doing considerable less driving by planning our driving routes and car pooling with neighbors and friends when possible. Consider also renting movies instead to going to the theaters because rental is much cheaper and can sometimes be more enjoyable because you can watch the movie several times if you so desire.
Ultimately, the most important thing for us is to be able to see where our money is being spent and to see if there are more efficient and cost effective ways that we can continue to enjoy lives. Financial difficulty can be a very stressful thing to deal with but stress can be managed when you have a plan. As the global landscape changes, it also means that we will have to change with it as well in order to survive.
Posts
1 comments:
I agree with the comments. All of us have come to realize our spending power has diminished significantly over the past year regardless of income. In our own economy the cost of goods, including basic commodities has gone through the roof and with the declining dollar it only gets worse.
The approach Keimarlis is taking is not easy but critical to survival. Creating greater income in an economy where people are taking pay cuts and losing their jobs is extremely difficult. So the next logical thing is to cut costs. Persons reading the blog might say that the measure he suggests are small items but if you analyze your expenses you will see that these "small" items adds up rapidly.
Other measures I would suggest is pooling of resources. He mentioned car pooling but I would also suggest other forms of pooling. For example, taking the buying in bulk to another level and get other families to buy along with you. Sharing the picking up of the kids from school - saving time and fuel.
If you have multiple credit card debts that you just cannot get under control then consolidate them into a loan with a lower interest rate. If your car payments are just too high then talk to the bank and try to extend the term of the loan to lower the payments.
Overall fiscal discipline is critical for accomplishing your goals - crisis or not. It requires the family to choose a path and stick to it. That is the hardest thing.
Post a Comment