Cutting Back

Moemg · 06-21-2008, 12:54 PM

Is anybody cutting back on expenses due to the stock market and the economy ? I'm a little hesitant to spend a lot on travel right now which I wonder if it is foolish . I'm way under the 4% and I'm not getting any younger . Are other members doing the same ?

REWahoo · 06-21-2008, 01:00 PM

Quote:

Originally Posted by Moemg

I'm way under the 4% and I'm not getting any younger . Are other members doing the same ?

No, I'm not 'way under' 4%. And yes, I'm not getting any younger.

As to the cutting back question, not really. I set aside 2-3 years expenses in CD's and MMkts which insulates me a bit from having to spend 'depreciated assets' at the moment. I might tighten the belt some if things don't improve in the next 12-18 months, but as for now it's pretty much business as usual.

ziggy29 · 06-21-2008, 01:01 PM

Quote:

Originally Posted by Moemg

Is anybody cutting back on expenses due to the stock market and the economy ? I'm a little hesitant to spend a lot on travel right now which I wonder if it is foolish . I'm way under the 4% and I'm not getting any younger . Are other members doing the same ?

Nope. I'm not going to feed the media fear and doom monster.

Silliness aside, no -- we still meet all our needs plus fully fund our retirement accounts (my 401K plus two Roths), plus we have close to year's expenses in our emergency fund. Obviously, if the doom-mongers are correct, at some point we'd have to adjust, yes. But for now I see this as a speed bump.

If anything, we'd cut back on spending because we want to invest more money while the market is down.

Meadbh · 06-21-2008, 01:16 PM

Quote:

Originally Posted by ziggy29

If anything, we'd cut back on spending because we want to invest more money while the market is down.

I have cut back on discretionary expenses, including clothing, entertainment and gifts. I have stopped self funding work related expenses, e.g. parking, meetings requiring travel. (If it's important that I be there, they can pay my expenses).

However, I continue to invest in the markets at the same DCA. I am also gradually adding some managed rental real estate to my portfolio.

lazygood4nothinbum · 06-21-2008, 01:21 PM

my spring loaded wallet has shut tight and my debit card has a reverse toilet float ball mechanism whereby when the level gets too low it shuts down so that i can't flush any more than i already have in the tank.

TromboneAl · 06-21-2008, 01:29 PM

I've been trying to spend more money this year, but watching the stock market is making it harder to do.

On a related note...

I'm freecycling a hammock, and someone was planning to pick it up, then I got this email:

We don't have the gas to get out to your place!! i thought there was enough to get out to your house! My husband doesn't get paid intill the 27th. If there is any one else interested in it? You can pass it on if there is. Sorry, about this. Mary

VaCollector · 06-21-2008, 01:31 PM

Quote:

Originally Posted by TromboneAl

On a related note...

I'm freecycling a hammock, and someone was planning to pick it up, then I got this email:

We don't have the gas to get out to your place!! i thought there was enough to get out to your house! My husband doesn't get paid intill the 27th. If there is any one else interested in it? You can pass it on if there is. Sorry, about this. Mary

Wow

!

ziggy29 · 06-21-2008, 01:35 PM

Quote:

Originally Posted by TromboneAl

I'm freecycling a hammock, and someone was planning to pick it up, then I got this email:

We don't have the gas to get out to your place!! i thought there was enough to get out to your house! My husband doesn't get paid intill the 27th. If there is any one else interested in it? You can pass it on if there is. Sorry, about this. Mary

If there are any journalists lurking, it's sure to be fodder for the "see how badly everything sucks" approach to economic reporting these days.

**Marquette** · 06-21-2008, 03:33 PM

To be honest, the only thing I'm doing differently is saying 'wow, this trip to the fabric store in St Paul will cost me $8'. To be fair, we still go, and six months ago it wouldn't have been much less, but something about gas near that magical $4 mark ($3.92 when I filled up) gets me to do some math now and then.

Then again, we're nowhere near retirement.

TromboneAl · 06-21-2008, 03:36 PM

Heard this news story: In some state (California?) if you run out of gas on the freeway you get a free gallon of gas to get you going.

These incidents have doubled lately. They said that some people were not out of gas, just going after a free gallon ("Hey the fuel gauge is broken, that's why it doesn't point to 'Empty'"), but many were just filling up because gas was expensive.

Moemg · 06-21-2008, 04:33 PM

Quote:

Originally Posted by lazygood4nothinbum

my spring loaded wallet has shut tight and my debit card has a reverse toilet float ball mechanism whereby when the level gets too low it shuts down so that i can't flush any more than i already have in the tank.

Lazy , you always come up with the best ideas !

Gotadimple · 06-21-2008, 04:58 PM

As REWahoo said, there is a sufficient reserve in emergency funds to hold me for quite a while.

I am planning a driving trip in a couple of weeks. I've saved for it, and I intend to take the vacation. Certainly, if the markets were to drop significantly more (10% or more), I'd reconsider -- but I don't think that will happen.

Did notice today while I was out running errands that gasoline dropped $.02 a gallon from last Thursday.

--Rita

ladelfina · 06-21-2008, 05:05 PM

answer to OP: yes. And the more you have a LYBM habit the worse it is. If I were expecting to retire with $80k, fewer problems ratcheting down to $60k than from $40k to $30k. I used to think if it got too expensive here we could always move back to the US, but having to pay for health care and prop. tax (here it's now zero!) would seriously undermine us.

Leonidas · 06-21-2008, 05:16 PM

Quote:

Originally Posted by TromboneAl

I've been trying to spend more money this year, but watching the stock market is making it harder to do.

I'm still planning on spending more this year, but the craziness has made me put the capital markets on my ignore list. Only way I can keep my sanity is by not watching what's going on.

Quote:

Originally Posted by Marquette

To be honest, the only thing I'm doing differently is saying 'wow, this trip to the fabric store in St Paul will cost me $8'. To be fair, we still go, and six months ago it wouldn't have been much less, but something about gas near that magical $4 mark ($3.92 when I filled up) gets me to do some math now and then.

It's hard to ignore the price of gasoline when it costs $80 to fill up my truck. Good thing I only fill it up once a month or so, but I do find myself calculating how much it costs to drive someplace.

73ss454 · 06-21-2008, 06:02 PM

I'm trying to cut back but DW isn't playing along. I think she thinks I'm working nights.

REWahoo · 06-21-2008, 06:09 PM

Quote:

Originally Posted by 73ss454

I'm trying to cut back but DW isn't playing along. I think she thinks I'm working nights.

Aren't you? I'd swear you said you were selling cars to ladies in the evening. Maybe I just imagined the selling cars part...

**Want2retire** · 06-21-2008, 07:25 PM

The stock market isn't causing me to cut back on my spending. I am still working so my losses are lessened with each paycheck. Additionally, I have a considerable amount in fixed income, so my losses are bearable.

Quote:

Originally Posted by TromboneAl

I've been trying to spend more money this year, but watching the stock market is making it harder to do.

Like you, I've been trying to spend more money this year. Some of the things that are stopping me are:

Old (spending) habits die hard.
After I get home from a long day at work, the last thing I would want to do is shop.
I don't want to add to my stuff until after I move north (less to move, less hassle).
I don't want to get a brand new car all dented and scratched in the parking lot at work, so no new car this year.
Nintendo just isn't making enough Wii's and Wii Fit's.

OAG · 06-21-2008, 07:32 PM

Not cutting back at all, but still do not like the gas prices and just envision all that money going to the middle east (I know it all does not go there). In fact I purchased a couple of near the top of the line computers with all the attachments this year and a new HD TV. We are planning a 2-3 week trip to Virginia (from Central OH) and may extend it to north Florida for a week or so before heading home (about a 2,100 mile trip in a SUV).

CyclingInvestor · 06-21-2008, 08:24 PM

No cutting back here. 18 day vacation in May, planning some more.

I am a little over 4% this year because of some irregular expenses, but the dividends that I live on
keep getting raised (PG in April, JNJ in May, ITW probably in September, KIM probably in October)
faster than inflation, so no concerns here. Stock market valuations mean little to me any more. Now if
profits for the companies I hold rise more slowly than inflation, then I would start to get concerned.

SkisALot · 06-21-2008, 08:32 PM

Quote:

Originally Posted by TromboneAl

Heard this news story: In some state (California?) if you run out of gas on the freeway you get a free gallon of gas to get you going.

These incidents have doubled lately. They said that some people were not out of gas, just going after a free gallon ("Hey the fuel gauge is broken, that's why it doesn't point to 'Empty'"), but many were just filling up because gas was expensive.

The only people in California who get anything free are the illegals. Where I live, regular gas is $4.99 a gallon and if I run out, I'm on my own.

06-21-2008, 12:54 PM	#1
Moemg Thinks s/he gets paid by the post Join Date: Jan 2007 Location: Sarasota,fl. Posts: 2,855	Cutting Back Is anybody cutting back on expenses due to the stock market and the economy ? I'm a little hesitant to spend a lot on travel right now which I wonder if it is foolish . I'm way under the 4% and I'm not getting any younger . Are other members doing the same ?

06-21-2008, 01:21 PM	#5
lazygood4nothinbum Thinks s/he gets paid by the post Join Date: Feb 2006 Posts: 3,615	my spring loaded wallet has shut tight and my debit card has a reverse toilet float ball mechanism whereby when the level gets too low it shuts down so that i can't flush any more than i already have in the tank. __________________ "life should begin with age and its privileges and accumulations, and end with youth and its capacity to splendidly enjoy such advantages."~~mark twain - letter to edward kimmitt 1901

06-21-2008, 01:29 PM	#6
TromboneAl Thinks s/he gets paid by the post Join Date: Jun 2006 Posts: 3,892	I've been trying to spend more money this year, but watching the stock market is making it harder to do. On a related note... I'm freecycling a hammock, and someone was planning to pick it up, then I got this email: We don't have the gas to get out to your place!! i thought there was enough to get out to your house! My husband doesn't get paid intill the 27th. If there is any one else interested in it? You can pass it on if there is. Sorry, about this. Mary __________________ - Al -- Always serious, never joking. No, wait. Never serious... Always... I forget.

06-21-2008, 03:33 PM	#9
Marquette Moderator Join Date: Jan 2008 Location: Planet Y Posts: 1,891	To be honest, the only thing I'm doing differently is saying 'wow, this trip to the fabric store in St Paul will cost me $8'. To be fair, we still go, and six months ago it wouldn't have been much less, but something about gas near that magical $4 mark ($3.92 when I filled up) gets me to do some math now and then. Then again, we're nowhere near retirement. __________________ What's this button do?

06-21-2008, 03:36 PM	#10
TromboneAl Thinks s/he gets paid by the post Join Date: Jun 2006 Posts: 3,892	Heard this news story: In some state (California?) if you run out of gas on the freeway you get a free gallon of gas to get you going. These incidents have doubled lately. They said that some people were not out of gas, just going after a free gallon ("Hey the fuel gauge is broken, that's why it doesn't point to 'Empty'"), but many were just filling up because gas was expensive. __________________ - Al -- Always serious, never joking. No, wait. Never serious... Always... I forget.

06-21-2008, 04:58 PM	#12
Gotadimple Recycles dryer sheets Join Date: Feb 2007 Posts: 271	Not Stopping Me As REWahoo said, there is a sufficient reserve in emergency funds to hold me for quite a while. I am planning a driving trip in a couple of weeks. I've saved for it, and I intend to take the vacation. Certainly, if the markets were to drop significantly more (10% or more), I'd reconsider -- but I don't think that will happen. Did notice today while I was out running errands that gasoline dropped $.02 a gallon from last Thursday. --Rita __________________ Only got A dimple, would have preferred 2!

06-21-2008, 05:05 PM	#13
ladelfina Thinks s/he gets paid by the post Join Date: Oct 2005 Posts: 2,574	answer to OP: yes. And the more you have a LYBM habit the worse it is. If I were expecting to retire with $80k, fewer problems ratcheting down to $60k than from $40k to $30k. I used to think if it got too expensive here we could always move back to the US, but having to pay for health care and prop. tax (here it's now zero!) would seriously undermine us.

06-21-2008, 06:02 PM	#15
73ss454 Thinks s/he gets paid by the post Join Date: Oct 2004 Posts: 1,707	I'm trying to cut back but DW isn't playing along. I think she thinks I'm working nights.

06-21-2008, 07:32 PM	#18
OAG Thinks s/he gets paid by the post Join Date: Jun 2006 Location: Dublin, Ohio Posts: 1,594	Not cutting back at all, but still do not like the gas prices and just envision all that money going to the middle east (I know it all does not go there). In fact I purchased a couple of near the top of the line computers with all the attachments this year and a new HD TV. We are planning a 2-3 week trip to Virginia (from Central OH) and may extend it to north Florida for a week or so before heading home (about a 2,100 mile trip in a SUV). __________________ Proud Vietnam Veteran: Cu Chi 66, 1/25th, HHC 25th and Pleiku 66-67 41st Sig Bn 1st STRATCOM

06-21-2008, 08:24 PM	#19
CyclingInvestor Full time employment: Posting here. Join Date: Jul 2005 Location: Los Angeles area Posts: 772	No cutting back here. 18 day vacation in May, planning some more. I am a little over 4% this year because of some irregular expenses, but the dividends that I live on keep getting raised (PG in April, JNJ in May, ITW probably in September, KIM probably in October) faster than inflation, so no concerns here. Stock market valuations mean little to me any more. Now if profits for the companies I hold rise more slowly than inflation, then I would start to get concerned. __________________ learn, work, save, invest, fire