Spending and Saving
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Love in the Time of Layoff: First Money, Then Love
They say you’re never supposed to talk about money, but in the recession, it’s kind of hard not to. Despite a growing savings rate, there has been massive income loss and a dramatic devaluing or even obliteration of assets. For a lot of us, money is forefront and ever-present on our minds.
But should you bring it up in relationships? Absolutely, say CPAs, therapists, love coaches and relationship experts. In marriages, money has always been the number one cause of tension, regardless of whether we’re rolling in it or dining on Ramen noodles…
Buying Time, or How I Learned to Spend Again
When I got laid off last December and had to curb my spending, there were some things that were hard to give up. I bitched about downgrading from a fancy gym to a utilitarian one. (Read Frugal Fitness for other tips.) I tried to convince my hairstylist to come to my house so I wouldn’t have to forego his services. I was sad about not sending my laundry out—and not just because I don’t like doing the wash. (Read I Miss My Dry Cleaner.)
But there were plenty of upsides to my new frugality. It was cozier to invite friends in for drinks than go out to a bar. It was fun and creative to craft a necklace out of a vintage brooch instead of dashing out to buy something new for a formal party. Though I hate negotiating, I convinced the cable and cell phone companies to give me discounts. I’ve always been financially responsible, but I felt especially virtuous in my new restraint and resourcefulness.
The downturn seemed to have a similar impact on society as a whole. It put the brakes on rampant consumerism. In record time, we have become less materialistic, less wasteful, less brand-obsessed. The savings rate has risen from zero to nearly 7 percent, the highest it’s been since the early 1990s. I’ve been hoping that the recession would be short, but have a lasting effect on our spending habits.
A little more than a week ago, I accepted a three-month consulting gig. It inspired a mix of emotions: I was relieved to have a steady flow of income for a while. I wondered what it would be like to work in an office again. I worried about doing a good job.
But mostly what I felt was an urge to spend, spend, spend…
Money Saving Tips from the Military
I belong to a military spouse club here in Camp Lejeune, and every so often they email you helpful news letters.. this week I got one about different ways to save money around the house. In these hard times we all know a little extra money goes a long way. Matt and I use most of these tips at home and some of them take a little extra effort but they are worth every penny.
Laundry- If you use an electric or gas dryer for your laundry, consider hanging them up outside or purchase an in home clothes hanger. ( Personally, Matt and I bought two, and they are 9.99 plus tax at Wal-Mart. They have paid for themselves. And, the great thing about them is, you can set your clothes outside to dry or if you have a rainy day they work just as good indoors. We cut our electric bill by almost 15 percent, thats almost 40 bucks extra a month. . yes, electricity is that expensive here.. )
Check your house for air leaks. Fixing them can cut cost on your heating/cooling bill BIG time! We live about 12 minutes away from the beach, and it is already 80 degrees average a day here. We had some missing insulation pieces from under our back door. We spent 2 dollars in supplies to fix it and now our AC doesn’t have to work as hard to cool down the house…
Are You Being Economically Abused?
It feels like we all are, thanks to the bank failures, massive layoffs and precipitous stock market drops. We have seen jobs vanish and savings diminish—and even if things seem to be getting slightly better, doesn’t that count as “economic abuse?”
Lots of people seem to think so. According to a recent survey by the AllState Foundation, for 75 percent of Americans, the term “economic abuse” (not a new term) brings to mind Wall Street woes or irresponsible spending.
Here are other responses in the survey, which was part of its campaign to support domestic violence survivors…
Love in the Time of Layoff: Money, Money, Money Talk
Carol M. knew she had a good thing in her boyfrirend, Eric. But earlier this year, when she lost her job as a schoolteacherand faced default on her subprime loan, it showed her just how caring and committed he was.
“We recently talked about being in a relationship, and one of the benefits of being in a relationship is you have someone on your side no matter what,” she says. “We sit down and we talk about things. Last week we talked about having to file for bankruptcy.”
Talking about money with a significant other can be a painful, awkward situation—especially when you’re in a dating phase. You’d think it would be easier in good times, but some are saying that the downturn has made it easier to both talk about finances and to learn about a significant other’s situation. Money is top of mind for many of us and a common topic of conversation. If someone is furloughed, laid off or had a salary slashed, their relationship to money becomes more apparent…
From Dual Income to No Income
When couples get hitched they agree, often in front of large audiences, to support each other through the thick and thin. It’s well understood that there will be times when one of the partners in the union will need a bit of propping up. But what happens when both partners need a boost? As the nation continues to wade through waves of unemployment, many households are going from two regular paychecks to no paychecks at all, reports Joann Lublin in The Wall Street Journal.
Talk about putting a strain on a marriage. In April, the national unemployment rate continued its climb to 8.9 percent as the number of jobless Americans went from 563,000 to 13.7 million according to the National Bureau of Labor Statistics. …
Domestic Violence and Money
This isn’t the happiest of news, nor all that new, but we thought it important to participate in the coverage of a report by cosmetics maker Mary Kay that shows an uptick in domestic violence related to financial woes.
From the study, in which 600 shelters were polled:
- Seventy-three percent of shelter representatives attribute the rise in abuse to “financial issues.”
- “Stress” and “job loss” (61 percent and 49 percent, respectively) also proved to be leading contributing factors in the reported increase in domestic violence cases involving women…
Getting Punished with Rewards
When it comes to money, I’m a bit of a goody-two-shoes. I have two credit cards I chose very carefully, always pay bills on time, and stay far below my credit limits. As a result, I’m sort of getting screwed.
These days, since I’m earning less money, I need my credit cards more then ever. I’m not talking about running up more credit, but the second currency I’ve built up over years of hard—yet responsible—spending.
In flush times, credit card rewards are a nice bonus. Since I lost my job, they’ve been helping to make up for my reduced cash flow. I used three months worth of American Express Membership Rewards to offset the cost of a hotel room for my cousin’s wedding. I used some to buy a toy for my oldest nephew…
Bad Debt Settlement Companies
It can’t be said enough that debt settlement companies are a poor option if you’re strapped with overwhelming credit card debt. From the New York Times Saturday:
When you sign up, many firms require you to pay a sizable fee upfront. Or they may levy initial set-up and monthly fees, and charge a percentage of the amount they saved you. They typically advise you to stop paying your debts and tell you to put aside money each month in a separate account over a period of two or three years. That sum will eventually be used to negotiate a settlement, usually about 60 percent of what you owe. In the meantime, though, credit card companies continue to charge interest and late fees. The creditor may sue. And the phone will probably continue to ring incessantly. The companies can offer no guarantees — except that your credit score will drop.
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Recession Concessions: Lost the Business, Keeping the Cleaners
Ryan M. Salinetti, 33
Suffolk County, N.Y.
Keeping: Cleaners
I’ve kept my cleaning people because I love them and I don’t want to see them suffer the way I have.
Letting Go: Employees, childcare, extras
I have a graphic design business [Breakwater Design Studio] that works with locals and local businesses. They did not just go into hibernation for the off-season—I drive down Main Street and see For Rent signs in the windows. There was a wine merchant who was doing excellent; I worked with him for six months on a website project and now he’s gone. Landscapers—their clients were V.P.s for Lehman Bros., and they were the first to get chopped. I do their graphics and marketing, so I got chopped next. It happened in three weeks. I had to lay people off. I gave up the idea that I could have a business, I moved everything home. It was horrible…
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