If you have extra money

[Tree0164]

On a couple of other money boards (not necesssarlily frugal or budget) wise I keep hearing if you are not in danger loosing your job, you should spend spend spend to save the ecomony.

Are you spending at this time or saving money if you own personal encomony hasn't changed much in the last year?

[maat55]

I'm saving. Perpetuating an already bad situation with more bad policy is not wise.

I think everyone should prioritize a bigger EF than normal, then payoff debt. IMO, we are headed for a big depression, I don't think spending is going to stop it.

[moneybags]

I am saving any extra money. We are even postponing some projects on the house, etc. DH still has a job, but who can predict the future? I'm saving everything possible, just in case.

[disneysteve]

Are you spending at this time or saving money if you own personal encomony hasn't changed much in the last year?

We haven't changed our habits a great deal. We already save over 20% of our income. I consider my job to be secure. My wife doesn't earn a whole lot but we've seen no sign that her job is in danger.

We are probably spending at about the same rate as always. We've always been thrifty anyway. Now is no different. We are probably paying a little closer attention to sales and my wife has been making an effort to use coupons and watch the supermarket sales better. Other than that, it is pretty much business as usual here.

[kork13]

I'm with DS... I've not changed my spending habits pretty much at all. I'm currently saving about 30% of my income, and still have a couple hundred dollars each month as "play money" (plenty for me). My job is very secure. I am fairly frugal as it is, so I'm not one to just go blow a couple hundred dollars on a whim.

In short, I'm in a very secure place financially, and there's little reason to restrict myself any more than I already am.

That said, however, I just paid off my car loan this week (WOOHOO!!!), so with that extra money in my monthly budget, I am sending a little more to my EF each month. Also, I recognize that I'm very "lucky" (relative to many people in the country right now) to be in the situation I am. In general terms, I agree with maat--for most, ramping up EF savings is probably one of the smartest things people can be do for themselves right now.

[skydivingchic]

I haven't changed anything. My CC is paid off in full each month and I have not debt except the mortgage. DBF and I continue to pay a bit extra on the mortgage each month, amounting to about 1 extra payment a year. I'm still building my EF, which is currently at a bit over 5 months expenses. I'm also continuing to save for a new to me car and to feed my travel addiction. In a true emergency, that personal savings could of course be used to cover expenses. All my day to day spending and expenses remain the same. Next month I will probably be receiving a raise and possibly a bonus (no I'm not counting on either, but my company has made no announcements that this won't be happening). If I do, I will increase my 401(k) contribution a little, treat myself a little, and plow the rest into accelerated savings. So generally, I'm continuing to stick with the spending and savings plans that were established before this whole mess.

[disneysteve]

I just paid off my car loan this week (WOOHOO!!!)

Congrats! That's great.

I did think of one thing I changed, but it had nothing to do with the economy. I would have done it anyway. I usually try and up our savings rate by 1% every 6 months so January 1st, I increased from saving 19% of my gross to 20%.

[Fizgig]

I'm not going to make a frivolous purchase because it's my patriotic duty. My fella and I do joke, though, when we go out to a nice dinner that we're doing our part to stimulate the economy.

My situation isn't changed, but the current state of things has only bolstered my gut-need to have cash in the bank, as little debt as possible, and low monthly expenses.

[Joan.of.the.Arch]

We, too, have always been frugal. Oddly though, and for no reason we can put a finger on, we did start eating out together more frequently ever since last May. Last I figured it, we were saving 28% of income and we certainly have not decreased that. We think we need this amount of savings for short term back up and for retirement years. We do buy our needs and some of our wants, but not in response to some outside plea to spend.

[disneysteve]

Oddly though, and for no reason we can put a finger on, we did start eating out together more frequently ever since last May.

Around here, many restaurants that never used to are now advertising. Also, many better restaurants are sending out coupons and running specials, things they never needed to do before to attract customers. As a result, we have checked out a few places we had never been to before.

[B.J. Johns]

the wife and i have cut back a little. we never really have lived outside our means but with everything going on we're being a little more conservative.

[TBH]

NYT had an interesting article about this recently.

To Spend or to Save? Trick Question

[creditcardfree]

I'm not necessarily spending more or saving more. I'm paying off home equity loan debt. Our job is secure, but where we live and when we move is up in air. So, getting the loan paid off and increasing our equity is the most secure thing we can do...regardless of the economy.

Spending as we normally would. Saving 15% of gross to retirement, as usual.

[adam_c]

We have chosen not to participate in the recession. We're out of debt (except the house) and have a decent emergency fund and really haven't felt much stress. Ironically, my work load tends to increase in an economic downturn, so I'm busier than average.

We've got several expenses on the near horizon; new tires, new microwave, daughters medical expenses ($2500 deductible), so we're setting aside funds for those, but otherwise, life goes on.

[creditcardfree]

We have chosen not to participate in the recession.

I'd like to think we aren't participating, but when I look at our retirement accounts it appears we are. I also see it in our money market interest rates! Those rates keep dropping.