Apparently, a person is supposed to have enough money in savings to pay their bills for six months in case they are laid off. Unfortunately, I make an average salary and live in a city with an above-average cost of living. I am able to keep my head above water and avoid any substantial debt, but the prospect of having a little nest egg in my savings account has yet to be realized. And let’s face it, six months worth of bills is A LOT of money.
Like everyone else these days, it seems, I’ve taken some steps to reduce my spending in case for when the economy continues to get worse.
- Coffee. My coworkers and I used to go get coffee together every Monday and Friday morning. We’ve completely stopped doing this and instead stand around in the kitchen drinking free coffee. It’s not the same, but it saves almost $10 a week.
- Grocery Shopping. I shop for the week every Sunday, then go home and cook/pack lunches for the week for me and my boyfriend. This not only stops us from eating out all the time, but also saves money by only hitting the grocery store once a week. Those little trips every few days for "just a couple things" tend to add up quickly…
- Salon Visits. As a natural brunette, the upkeep of having blonde hair was really getting unnecessarily expensive. So I went back to my natural dark locks with just some highlights. This way I should be able to go an extra few weeks in between touch ups.
- Books. I am a nerdy book worm, and it seems like I am always buying a new book to add to my shelf. However, my new resolve (after I finish all the books I received for Christmas) is to start going to the library again, which should be fun… it’s such a calming place, I think.
- Retirement. I know, not a good place to cut corners. But since for the past few months I’ve been losing as much money as I put into my IRA, I’ve suspended the contributions for six months. Maybe by then the market will have recovered a bit, and if not, at least the payments are going toward tuition instead, and keeping me out of debt.
- Walking. I try to run all of my errands at places I can walk to. Since I work in the middle of the downtown core this is usually pretty easy if I plan ahead. I also take the bus to and from work and school, which is another huge saver on gas and the environment. Plus, walking is good exercise!
Are you doing anything to cut back on your spending? Are you stressed about the economy?
3 comments:
We also go to the grocery store once a week, on Thursdays and bring lunches and eat at home, but it always seems like we still go out to eat a few times! I'm stressed about the economy too, it makes me scared for Dustin and I to move somewhere and get a MORTGAGE and be stuck trying to make ends meet and having to live off of two incomes- I mean, would if one of us were to get fired? So we're going to stay here for now. Although, they just told Dustin yesterday that none of them are getting raises this year! My other friend told me that their raises were frozen as well. I guess it's better than a pay CUT or getting fired though!
I'm pretty sure the economic crisis will result in so much starvation and homelessness that the survivors will be bathing in currency in a year or two. Thousands fewer people means thousands more orphaned dollars! Outwit! Outlast! Outplay!
Excellent plan, Steve.
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