Is anyone else stimulating the economy?

[Daylily]

Evidently, my personal spending cycles are out of synch with the rest of the nation. DH and I are normally frugal. We buy only what we need when we need it. We don't carry credit card balances. We usually don't replace something unless it breaks. For example, when everyone was buying large TVs we didn't buy one because we still had a 20-inch TV (our only one in the house) that was nearly 20 years old that was still working. We didn't replace it until much later. Whenever 'extra' money comes my way I usually just set it aside rather than buying anything. I have never been one to spend, spend, spend. Now I'm hearing that consumer spending is grinding to a halt. I just find it strange because my/our spending has just done a 180. We recently purchased a home theater system and we also purchased a new computer. I am due to get a bonus in a week from now and rather than doing my normal routine of setting it aside, I'm actually thinking about purchasing a new dining room set and some other furniture that I've wanted for a while. I just find it ironic that I am SO out of whack with the rest of the country.

Disclaimer: I intend no disrespect for anyone who has fallen on hard times or has dealt with job loss or reduction in hours or wages recently. I also in no way wish to sound braggy about my purchases or my good fortune at still being somewhat securely employed.

[kork13]

I suppose I'm working my way there.... I've been looking at getting myself a piano to get back into playing, and I finally found a dedicated piano shop (locally owned at that) that is going to help me in finding a used one I can afford (the suckers are expensive!). So I guess in that, once I find one that works for me, I'll be "doing my part" for my local economy a bit, but no idea when that will be... timeframe stretches from next week to, oh, 6 months from now.

As to being out of sync with the nation, I think it simply speaks to the stability of your family's individual situation, and it's probably good that your actions aren't guided by society as a whole. It's inevitable that while many are having troubles, others will be doing just fine, or even flourishing. The economy as a whole is faltering somewhat, but that doesn't mean that everyone suddenly will fall on hard times.

[Pitman]

It's inevitable that while many are having troubles, others will be doing just fine, or even flourishing. The economy as a whole is faltering somewhat, but that doesn't mean that everyone suddenly will fall on hard times.

I agree.

As to the OP's question, I plan on stimulating the economy the week I come back from LA in mid April with a car purchase. The car is actually on sale now, but how I see it if the car is still there by the time I get back, its fate for us to be together.

[disneysteve]

Suze Orman, Knight Kiplinger, and numerous others in the media, have pretty much said, "If you've got it, spend it." Obviously, part of the financial problems are coming from the fact that a lot of people are cutting back out of need. They simply don't have the money to spend. What is escalating the problem, though, is that many others are cutting back out of fear or because they think it is the right thing to do to show their support for others. In fact, it is probably the exact wrong thing to do. By cutting back spending for no good reason, they are aggravating the problem.

Suze Orman said that she has been eating out every single day to help support the restaurant industry. For her, that is a perfectly reasonable thing to be doing because she has the means to do so.

So don't sweat it if you are spending more than usual as long as all of your financial ducks are in line.

[FrugalFish]

What is escalating the problem, though, is that many others are cutting back out of fear or because they think it is the right thing to do to show their support for others. In fact, it is probably the exact wrong thing to do. By cutting back spending for no good reason, they are aggravating the problem.

That's the truth. I'm surprised how many people have said that exact thing to me- that they aren't spending money because nobody else is. Surprisingly to me, this includes a lot of retired people who receive good monthly pensions that aren't going anywhere.

DH and I are off to buy a new garage door and opener this weekend (something we should have done years ago). We first started talking about doing this in January but then found out that one of our favorite neighbors is having serious financial difficulties (he works in a construction field). It felt wrong to slap a fancy new door on the front of the house when this guy's going through such a tough time- then our cat got sick and died so we funneled funds that way. Now the door is at the point of no return, so it's going to happen now. Hopefully the neighbor won't feel like we're rubbing his nose in it.

[MonkeyMama]

I identify 100%. This year we are making more, saving more, and spending more. We've been on a very (self-imposed) tight budget for years so we could be home with our kids. So the last few years all I hear is I am deprived and I don't get out enough (which is ludicrous - we have plenty of wants - just not the same wants as everyone else. ). Now, I am personally not going to spend more "just because." But these days we are making a lot more, our expenses have decreased, and we have been splurging a little more with all the deals out there right now. We are certainly not cutting back. One area we have been splurging more on is eating out because the coupons are too good to be true right now.

I'm used to it. We always seem to zig when everyone zags. I personally do know a few too many people who made it clear they thought I was crazy to have a fixed mortgage and not to spend money like water when we had children. Now they are literally losing their homes and we are relaxing our belts a bit. But we are also saving more this year than we have since having kids.

I think that's why I cringe when I read things like "frugal people are ruining the economy." For most of us with jobs still, it's really just "business as usual."

I've been shopping for an expensive bike, and it feels rather odd to read all the headlines, and to be treating myself to a $500 consumer good for like the first time I can remember.

[Ima saver]

We are also splurging a bit. We needed two new chairs for the sitting area in our bedroom and they just came in, today. we also ordered a new table and chairs for our breakfast room which should be in, in a few weeks.

[Bernz]

I have been contemplating on buying a new laptop for almost 2 months now and so far I have not made that move yet. It's been very tempting as I have been looking at a nice laptop at costco for $579. Can I afford it? Yes! Do I need it? Not really! My 4 year old laptop is still in good shape, but my kids are both using it now as well. I guess what I am trying to say here was the fact that I have been doing really good as far as knowing what my priorities are.
Hey, my hot water tank broke last month and it was replaced in minutes.

[creditcardfree]

For the most part we are spending as usual...the basics of life. We have job security, so when we are able and want to, we spend. I just bought a new living room blind that cost us $150. I bought my daughter a digital camera for her birthday. We're doing our part...but in our usual way!

[Russell]

I've bought a few things here and there. I'm OK with buying things I need anyway or things I will use or even things I want but I refuse to buy something just because there's a good deal out there.

If however, I had the job security (is there such a thing in the corporate world?) I probably would take advantage of some of the sales. I've been wanting to buy a new car, travel with the family, look into buying a small hobby farm (we're city dwellers) and an investment property etc.

[LivingAlmostLarge]

Nothing out of the ordinary. I spend like it's a normal year. Next year without DH's tuition....we might be splurging.

Last year I was worried about the economy. So we didn't travel abroad, instead we did trips nearby and spent less. This year I'm considering a trip to Egypt or Turkey. Something we've done almost every year since we've married.

So I guess it's indulgent. Truth is my DH is feeling enormous guilt over spending. More than me. We've been doing well so we can afford a lot more things.

I've been stashing more cash than usual, ie more than even our tuition. So I think we could afford more, but it's hard to go splurge when there still is a lot of rampant fear.

[stressedmama]

I feel I'm in the same boat as the OP. We've been frugal and have watched every penny all along for years. We don't go out and blow money on stuff we can't afford and eat out all the time. DH and I have fairly stable jobs and so we too are now taking advantage of some of the deals out there. For example, we normally take one big/longer vacation a year, however this year we will be spending a little more then usual and taking our 2 DSs to Disney World for the first time ever. We found $200/ round trip airfare and Disney is currently offering a buy 4/get 3 days free trip. So, I feel we are doing our part to stimulate the economy. It feels great to have our financial lives in order so we can continue to enjoy doing things even when it seems everyone else is so panicked.

[Caoineag]

Not purposefully but yes we are. Just bought a new house and have spent a lot fixing it up and have taken advantage of a lot of deals on the work. Course once the fix it projects are done, we will go back to hoarding money.

For us, its not that we saved so much money aside, its that we have kept our expenses so low that even with my husband job hunting, we can still afford to have the work done.

[tripods68]

We are doing our part.

DW just spent $400 grocery shopping last night (Costco and FoodCo.) which is our usual average bill.

I'll be hiring landcaper in the next month to redo our backyards while we continue to budget and save on the monthly basis. I'd been wanting to upgrade to a new barbecue grill since the weather has been slowly rising to mid 60s.

We are planning our family vacation in July. Hopefully we could fly to see my sister in Maryland. If not, we might end visiting Disneyland this summer instead. Our kids would definitely love that.

[Broken Arrow]

Not too long ago, I bought myself two sets of inexpensive suits and some shirts at a heavily discounted price at Men's Wearhouse.

I've also bought a punching dummy that I've always wanted. Yeah, that was definitely conspicuous consumption, but the discount was so huge that two cashiers had to go double check the price before they would ring it up for me.

Late last year, I did finally buy a new HDTV and Blu-Ray player.... The HDTV is a small Samsung Rose that I've always wanted, and the price have finally come down enough for me to make the leap. The Blu-Ray was also a good price that came bundled with extra cables and a movie, plus a rebate on top of that. For brand names, both were the best deals in town.

Those are my dirty laundry list of things that I've uh stimulated the economy with.... While saving and investing is still my primary focus, I'm definitely keeping my eye out for great deals of stuff that I have always wanted. It's a great time to be a consumer.