What changes have you made, b/c of the economy???

[CoffeeCat]

I am wondering what changes (big and small) people have made to deal with our
ailing economy and to deal with worse economic conditions that may lie ahead.

Are people spending less and saving more?

Are people thinking about changing jobs, if you feel that your job is vulnerable or
are you staying put? If you've lost a job, what strategies are you using to become
re-employed in a tight job market?

What about investment strategies? Have people gotten out of the market or are you
staying put---or investing differently?

Are you trying to save money and conserve in ways that are new to your household? Do
you shop at cheaper grocery stores or use coupons? Are you eating cheaper foods, turning down
the thermostat or spending less on entertainment and non-essentials?

Big and small--how has your household budget and handling of money changed due to the
economy and the possibility of the economy drastically worsening? Are you stockpiling?

Are you preparing psychologically for hard times? If you have children, have you talked
with them about the current reality? Do you and your partner/wife/husband have open
dialog about the economy and a game plan for a larger downturn?

I think it would be interesting to read about the many ways that this economic crisis
has impacted us and the various ways that we are dealing with it and preparing for
tougher times.

[tridim]

1. When Enron collapsed I pulled all my money out of the market..

and stopped spending on non-essentials. I could tell that things were FUBAR at that point, and I was 100% right.

Lately all I've done is bought a Motorcycle that gets 70mpg. I can't wait until spring so I can stop driving my car.

[jaksavage]

2. Saw it coming.

Bought a hybrid in 2004. Other vehicle is a 1990 ford PU.
Sold a 1800 sf house and purchased a 1100 sf house in 2005
Sold my auto shop and property in 2006
Payed off mortgage with proceeds.
Built a coup and have 6 chickens
Have 3 garden plots and provide food for ourselves and friends and relatives.
We buy in bulk and on sale. We make beer and bread.
The high fuel prices didn't touch us, we walk and bike around.
Heat mostly with wood in an epa certified stove.
We have chosen not to travel far distances, no air travel.
We pulled out of the stock market early this year.

We communicated this to all who would listen.

We recieved a lot of blank stares.
More folks are realizing our foresight now.

We love our simpler life.

We feel rich and live like we are poor.

[napi21]

3. I haven't changed anything recently because MY economy has been

"not good" for about 10 years. I became ill about 10 years ago and lost my job. We went from a household income of $83,000/yr down to $23,000/yr. I quickly learned that you don't buy anything you DON'T NEED, and even if you think you NEED it, you think about it for a day or two before you spend the money. I make almost everything from scratch instead of paying more for packaged meals. I find a way to use all leftovers if there are any. We almost never eat out.

It's amazing how much & how quickly a dramatic shock like that can change your habits and your mindset.

[1gobluedem]

4. I took three tags off the church's giving tree and two bags for the food bank

Because I could afford to do it better than some others could and people need the help.

I'm not rich but, luckily, my job is secure and my pay hasn't gone down (knock on wood).

[carlyhippy]

5. frugality by force

taking one trip a year for vacation, I go to the store only once a week, with a list of preplanned meals, only getting a few snack foods and the essential ingredients for the meals. I drive only when I have to. Cut way down on spending money on extras. Clothing is only bought when necessary, and it's off the sale racks.

[chemp]

6. Work, Family or Personal?

Work:
As a manager, I needed cut budget and spending, as well as eliminate waste to the bare bones.
I also need to justify payroll more ie sales per labor hour and transactions per labor hour.
supplies and equipment have been cut to zero. planned renovations canceled.
Job:
Really getting tired of job, both work I do and commute distance. Debating sucking it up, but I'm looking for a move.
Family:
Xmas is canceled. My sister, brother and brother in law all got laid off. We (Wife, daughter and I) are pooling our Xmas cash and donating to a needy family in the area. Sister and brother notified that if there is ANY need, do not be afraid to ask. Other brother and sister agree and parents as well. The chemp family has circled the wagons.

[Tierra_y_Libertad]

7. Switched our IRAs from a "balanced" fund to a Money Market fund 6 months ago.

By that time the handwriting on the wall was flashing in neon. I've been keeping on eye on that Balanced fund since and figure we've saved about $20k..so far.

[CoffeeCat]

10. Like you, I saw...

...the handwriting on the wall, but my husband was not convinced. We finally got our 401k out
of the stock market and into a MM fund, last week!

My husband just called me about an hour ago and said, "Sooooooo....the DOW is up quite a bit todayyyyyy."

I'm just glad we're out. We lost 19 percent, and I consider that pretty lucky, compared to what we
could have lost.

Kudos to you for making the move and getting out. I think moves like that take a lot of guts.

[Tierra_y_Libertad]

11. After losing a bundle on the dot.com crash and watching BushCo piss away the treasury.

A country living on what amounts to unpaid loans, watching our house treble in "value" in less that a year, seeing people refinancing so they can buy more toys...I don't consider myself a financial genius to figure out that something's got give.

Actually, it didn't take much guts. We're both retired gov't employees, so our pensions are pretty safe. Our, IRA's are used to supply a small ($400. a month) supplement and a backup in case of emergencies.

I think you did the right thing. I firmly believe that things are going to get a lot worse over the next couple of years. You may not make much money in MM's but it beats the hell out of seeing what you have disappear. There's no discernible comfort in saying, "We used to have a nice nest-egg."

[bain_sidhe]

8. Quit smoking

Ok, the economy wasn't the only reason, but spending in excess of $6,000/year while less and less was left over for savings was the final kick in the butt that made me decide to do it. My husband still hasn't, but he's cut his smoking in half, in preparation for quitting during the semester break. (He teaches college, and end of semester is stressful enough. End of semester with wife quitting is worse... End of semester with wife quitting AND quitting himself is... well, not thinkable. Really.)

And like 1gobluedem, we're not rich, but we are fairly secure. So we've upped our donations to local foodbanks by a factor of, like, a gazillion. (Seriously. We used to donate a couple of cans or boxes of food--whatever extra we had in the house--to the seasonal food drives... on the last two, I went out and bought about four bags worth of canned/dry goods to donate. After all, we have all this money from not smoking, now... ;) )

[4_TN_TITANS]

9. work is great

but downsized to a Scion in 2006, cut commute in 1/2 moved closer to work and town in 2007, put out garden in 2008 (have had chickens for years). Just those few things have made a big difference.

Compared to most people here in TN, we're way ahead of the curve. Many are just now looking up from their Bibles to discover Bush has wrecked the country. All the laughs we got from supporting Obama have gone silent.

[qwlauren35]

12. Considering a second job, cutting back on spending, saving more.

I moved some of my money into real estate. Not sure if it was a good move or not. I'm trying to move more of my investments into bonds and money market funds. They are still more stable.

But mainly, I'm just trying to pinch pennies. It's hard. i'm a compulsive shopper, but I'm doing my best.

[Libertyfirst]

13. Out of the market in july. Into CD's at 5%. More gifts to food banks. n