Bracing for things in advance...and not bracing.

Discussion in 'Money, Investing & Precious Metals' started by SurviveNthrive, Nov 7, 2010.

  1. SurviveNthrive

    SurviveNthrive a dude

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    I'm glad t have a job, and this isn't a post about complaints, it's about different mind sets.

    I'd seen some positions at work become subject to furloughs. A furlough in this sense is a mandatory unpaid day off. This comes out to roughly under 5% of the monthly income, or just under 10% of one of our bimonthly pay checks. For some of us, we'd seen this coming, we'd been exempt for the first round, but I'd anticipated we'd eventually be hit...so I began to find ways to cut back to absorb the blow.

    ...over the year plus, I watched what I was able to save get eaten up by increases in the cost of my medications, food, etc. I got lucky as a regular expense just ended, or diminished greatly, so I can weather this storm...but now I must figure out how to squeeze out a bit more, in case the furloughs increase and to match the increase in prices for different things.

    But the main thing I marvel at is...despite everyone knowing we'll get hit, some people insist that it 'can't happen' to them because they are increasing spending on unnecessary things during this period of economic uncertainty.

    It's fascinating, when we know we're going to get hit, some people not only continue their spending habits, they increase them and believe that because they need their income, that much more, it's not going to happen, no pay cut.
     
  2. mosquitomountainman

    mosquitomountainman I invented the internet. :rofl:

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    It's called "denial." There's no cure for it and the consequences can be fatal.
     

  3. HozayBuck

    HozayBuck Well-Known Member

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    I have taken the outlook that since my income is from SSI and DAV it can end.. BUT, when mine ends it ends for everybody! no welfare, no nothing for anybody... well..except the hacks in DC will still get their pay I'm sure...

    Anyway, for me right now it's getting out of debt asap! so I can put more preps away..
    I have no doubt the ax will fall so it's get it done now, but with debt, nobody can get it done... so somethings gotta go..

    I was talking to my banker and said if the ax falls you can come to TX to get "your" truck..he laughed and said if it was that bad I'd have to loan the bank enough money to buy the fuel to come repo it lol.. we did have a good laugh!..

    I've spent the last 3 years with my head so far up my *** that the whole world looked brown... no more..

    Hopefully I'll have a year at least to really get where I need to be ... I think a year might do it.. I have a good start.. in fact a very good start but I sure regret the last 3 years...
     
  4. gypsysue

    gypsysue The wanderer

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    Along with working toward getting out of debt is cutting back on spending. SNT, you're a wise man, and it's nice to hear someone taking it seriously. I suspect you'll get through it, and maybe a few people will learn from you.

    We have a neighbor who told us for a few years that the place her husband worked was going to shut down. She spent like there was no tomorrow! June 2009...the place closed down and her husband was out of work. Sure, he's playing the "extended unemployment" game, but they're struggling to pay all the loans and credit cards they continued to rack up while she kept yelling "the sky is falling". I just don't understand why people do what they do.
     
  5. optimist45

    optimist45 Member

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    I am probably in a better position than some but worse than others. I am a CEO, I cut myself 10% 22 months ago, then 16 months ago I had to go 20%. I run a business in healthcare that is low profit margin labor intensive. We used to have 220 employees, down to 160. I had to cut myself to keep the business going. As a RN I could make more money working as a nurse but I stay because of others that I worry will not be able to have a job if I was to give it up. I am fortunate that I can always fall back on my nursing career.

    I actually have to come to enjoy the 4 days off a month without pay, it gives me time to study and prep. But I did have to change things in my lifestyle. I eliminated my housekeeper, I started coloring my own hair, I clip coupons and now look for sales, I try to shop on the internet without taxes when I can. I have saved our household money with my garden.

    I actually have thought of getting a second job while I can still earn money so I can be better prepared. If our financial picture was to futher decline I would easily give up cable TV (not internet) and I am sure there are other things I could cut. Wish I had our house paid off but still have 9 years to go. Trying to keep other debt low. Most of my spedning now is focused on prep.
     
  6. SurviveNthrive

    SurviveNthrive a dude

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    I decided that if, and now when, the furloughs take place for me, I'm going to dedicate that day to earning that income in other means. For me, the most obvious and viable stream of income is from writing. I just got a contract for my first Ebook recently and I'm going to do something with my materials.
     
  7. tac803

    tac803 Well-Known Member

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    I think that many people are still in a state of denial...not even remotely able to grasp what has happened, what is happening now, and what might be around the corner. I also think that the people pulling the strings on this debacle are counting on the dumb masses being too slow to react until it's too late to effect any meaningful changes.

    I find myself somewhat overwhelmed at times, looking at what's unfolding and thinking it's almost of Biblical proportions. Making the prep shopping list loses some of it's aura when the reality hits that in all likelihood it's going to get used in an "actual emergency".

    I remember listening to the radio when the stock market started to crash two years ago...the sinking feeling in the pit of my stomach, realizing that this could really be IT. I hated that feeling!
     
  8. Daegnus

    Daegnus Active Member

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    I feel lucky to be in the position I'm in. I have a job, I'm at the top of the pay scale, our particular business broke even this year in an industry that was statistically down 7-15% overall, and I'm guaranteed a small raise. I'm payed salary, which isn't the greatest when you work 80 hour weeks sometimes, but at the end of the year, overtime is payed for extra hours worked.

    At this point I'm working on paying off my debt (only a few months left! :beercheer:) and clipping coupons. I've really started to pay attention to what is necessary spending and what isn't. I don't have cable, just internet, hell, I don't even own a TV, I'm cutting my other bills where I can. I'm spending my winter :quote: downtime stocking up, reading, practicing, and training the dog.

    All in all, things are pretty good for me at the moment, but I dread the day that I have to use my preps and skills, not because I can't, but because I don't want to. I'd rather be prepared and not have to use my preps than be floundering and have nothing to fall back on.