October 2008

[Honeylioness]

22 October 2008

Question of the Week (QOTW): is brought to us by mrslynch: Given the difficult economy we are in what would you do if you or if you have one a significant other were laid off? How would you make do?

Honestly? I would probably first crawl home, freak out, and curl into the fetal position under the quilts on my bed to suck my thumb for a while.

As I have mentioned in other posts, my industry – healthcare – is more secure than others during economic downturns. If it was a lay off then the state has certain requirements as to severance in lieu of notice and paying out unused vacation and PTO days. But even then, I would be calling every placement agency I could for temp work, contract work, whatever. File for unemployment and not wait until later. In short I guess if it meant I worked three part time jobs at fast food then that is what I would have to do to pay the mortgage. There is not that much in my budget I can cut – the newspaper, a couple of magazines, basic cable – that would only get me about $30 a month in savings. I would definitely have to stop smoking cold turkey and cut meat from my meals to perhaps once or twice a week.

As most know, my SO has been out of the country for over a year so his finances have no impact on mine at this point

Challenge of the week (COTW): Also brought to us by mrslynch: Make a contingency plan for if you or your significant other were unable to work!

As someone else noted – for me it would depend on WHY I was unable to work. If it was due to illness/disability – my company provides a rather comprehensive plan and I have carried my own insurance for years so regardless I would have money to pay the basic bills for up to two years if things got that bad.

I could rent out my second bedroom to help meet the mortgage. (Actually was thinking I could rent it to sdaklh who indicated she might have to move back to Massachusetts). My EF has about 1.5 months of living expenses in it and that makes me nervous. I would consider selling some of my nicer things – the only catch being that if others are in the same boat who will be in the market for a 1935 baby grand piano? Moving back to live with my parents might be too cost prohibitive as they live on the other coast. If/when Redhawk gets back stateside this is something we need to sit down and talk about. In the meantime I should take another look at things and see where I might be able to squeeze out a few more dollars a paycheck to add to my EF.

[Honeylioness]

27 October 2008[/u]

Hello everyone - I am just popping in during a break at work to reply to a couple of things. And also, because I feel a bit guilty about not keeping up with all the posts the last week or so - my personal life headed into a ditch and, just suffice to say that I have done something I feel guilty/embarrassed/wicked-witch-of-the-west about.

November is always harder for me then December since I have the following birthdays to deal with: Mom (2nd), Dad (6th), SIL#1 (7th), and SIL#2 (24th).

On a positive note (actually not sure this won't get me banned for being way to A.R.) - as of last week my Christmas shopping is ..... DONE! My goal is to get everything wrapped then boxed up to be shipped to various states during my days off after Thanksgiving.

[Honeylioness]

MP Dunleavey
10/08/08 04:39 PM

As I write, the stock market seems hellbent on its downward plunge. Some economists are saying we're about to hit "bottom", but the truth is no one knows where this economy is headed--no one has been here before.

The trouble isn't just the US economy--the failed banks, the frozen credit markets, or even the much-debated bailout--it's that we are all one financial world now. The markets here are connected to the markets in Europe, Asia, Africa, the Middle East, etc. Our dominoes can't fall without knocking over a whole bunch down the line.

What do you all think, my fellow Women in Red (and Black)? From where you sit, what are the things that still feel within your control--and which don't? What are you most worried about? How do you feel about your money, right now?

I have many worries--about retaining my jobs, sustaining my income, about my parents going broke and (perhaps) having to rescue them. But I'm also looking ahead, or maybe just down the block. We are shifting into a new economy, and it's going to require a new view of money. What do you all think of that?

*******************
09 October

Things within my control: My attitude, my viewpoint, my choice to either succumb to many of the doomsday newscasters merely looking for ratings. My choice to not give in to panic but look at the bigger picture, plan for the worst and hope for the best, my own intelligence in researching for myself what is real and what is the modern equivalent of Chicken Little. Living expenses ( i.e. food, clothing, electricity use etc.), my choice of lifestyle and discretionary spending for entertainment or activities. Keeping my job (I am in health care so unless I do something egregious or unethical and get fired, my industry is stable – as people will always get sick)

Things outside my control: Death and taxes. Direct influence on the greedy idiots who knew darn well that they were lending money to people who honestly had no ability to pay it back responsibly, overseas markets response to the situation here, whether the sun rises tomorrow and the Red Sox winning another World Series. Keeping my job (who knows, someday I might just hit the wall and tell one of my bosses what I REALLY think).

I do not mean to sound as though I have no sympathy for those who are truly scared, many with good reason. I just have a different perspective. Although no one in the media or government wants to use the word openly – I see us moving into another Depression with global consequences. Will it get worse? Probably. Am I concerned about certain friends and family members? Absolutely. However for some, they were culpable in creating this, and their own, mess. The current situation proves what I have known for a long time – there is no such thing as a free ride and regardless of how long it takes, consequences will always catch up to you. And perhaps some people have needed this financial two-by-four upside the head to wake up and recognize their destructive behaviors, habits and mind-sets.

As strange as this may sound to some – right about now I am feeling rather lucky that my family was so poor when I was young that my parent’s often went more than a week without meat/protein so us kids had some. My father especially grew up dirt poor, the oldest of twelve children in the rural South, so he never was one to squander things. I was lucky to grow up watching them patch clothes, fix the toaster rather than buying a new one, make due with what we had, and yet still find cheap ways for us to all have fun as a family. Fondly I remember getting into the hatchback with a small cooler of homemade ice tea and a big greasy brown shopping bag of popped corn my mother made at home and going off to the double feature at the drive in. The first one was always for kids, then we would curl up in the back of the car and go to sleep while my parent’s watched the second more adult movie.

Perhaps I should be worried more than I am. But I worry more for them. My father hopes to retire in the next couple of years and they have talked about selling the house and buying something smaller with less upkeep. My only concern about that is I hope they can sell the house – they bought it in 1976 so I know they will make a tidy sum regardless of the real estate market – I just hope it is more than it would be today.

On the up side, I echo what others have said or alluded to. Those of us who have learned to live within our means and not give a hoot about what the Joneses are doing ARE going to do better in the long term, even though it will have unintended effects. Example: people stop going to the movies, so the theater cut’s it hours, so a worker looses pay or their job, so their family struggles more to pay the bills, so they stop eating out, so a restaurant closes etc….. HOWEVER – when things do turn around perhaps we will have all learned some valuable lessons. About how to value our resources more, about valuing the people in our lives more than our “stuff” and the real value of money.

[Honeylioness]

MP Dunleavey
10/17/08 02:59 PM

here's one thing i'm trying to figure out. yes, the economy is rocky. spending is down. housing starts are down. the market is still down. (and my retirement account, small though it was, is dwindling away.)

BUT...should we be afraid? my jobs thus far are ok (knock wood!). we are still paying our bills. the bills are still coming, of course. my house still stands. yet so many people seem on edge. people with money, with more to lose, are more anxious than those without. the folks i know who are broke, are actually pretty happy because they have nothing to lose.

my point being: yes, we can fear job loss--that is the worst, after a bankrupcty or foreclosure. but otherwise, perhaps there is nothing to fear right now?

Honeylioness
10/21/08 03:35 PM

Fear is not only an involuntary physical response to a real or perceived danger, but also a conscious choice we make in reaction to certain outside factors. I think the question we should be asking ourselves is “Should we chose to be afraid?”

I understand those who feel scared being only a year away from retirement and their 401(k)s are taking a hit. Or, due to an incredible amount of medical bills, have to face the thought of losing their homes. Yes, for some their situations really are near, or at, desperate. People have been laid off work, companies have gone out of business and the cost of goods continues to increase. But guess what – These things have happened many, many times BEFORE and they will happen AFTER this current mess calms down. There is nothing new under the sun. It is just now we have media sources to “remind” us of these facts 24/7 – and to what end? There is a big difference between being “informed” and being hounded. Some do it out of a genuine sense of reporting facts. But some do it for ratings and shock factor.



You need to ask yourself “What does my fear actually DO for me?” Does it motivate you to re-examine your lifestyle and make choices that are fiscally more sound. Or does it merely cause your stomach to churn and keep you up at night. If it is the first – good for you. Perhaps you are one of the millions who needed such a financial wake-up call that living beyond your means was going to **** you in the end and that happiness cannot be found on the bottom of a cash register receipt. Perhaps now you will actually take the time to look at any savings you have and decide if a re-allocation of funds would be in your best interest. And I heartily agree with what Old Tex said -

I believe that getting out of debt is just the first step that people need to be doing. They need to prepare for their retirement without depending on SS. This correction is just a step back for us old investors but it's an opportunity for new investors to get in cheap (more shares for less money). I hope they take advantage of it.

If you chose the second option – why? What can YOU actually do to change the situation? Are you the head of the Treasury, or Wall Street? Do you administer billions in other people’s retirement accounts? Did you manage Lehman and AIG into a ditch? If the answers are “No” then what is the point of worry for worry’s sake?

I do believe things will get worse before they begin to level off, and eventually, as with all cycles, this too shall pass. But until then I will continue to do what has worked for me these past several years. Paying my savings account first each month, increasing my 401(k) contribution by at least the amount of my annual salary increase each year, being conscious of what I consume in the way of goods and services and shopping for the best value, not just the best price. Stay in touch with my support system on the NS/CSD threads, and be mentally prepared to cut expenses to the bone if need be. Aside from that I have made the choice to NOT check my accounts daily, not obsess over each news story that comes across the airwaves, get as much sleep as I need and remember to enjoy my blessings, my family and my friends.