Living In Today'S Economy

Living in today's economy can be tough as prices rise and the stock market falls head over heels. It appears that many of us are cutting back on what we spend on a day to day basis. I know we watch our lights and try to keep them off when we are not in the room. I turn the computer off when I am not using it and all the other appliances just to save a penny or two every month on the electric utility bill. My wife turns down the thermostat to 64 every evening and drops it to 60 degrees every night at bedtime. I use a blanket wrap while around the house in the evening and two blankets at night because she also opens the window and we live in Michigan! Yes, she does have hot flashes and I just shiver, out of my love for her.


Thrifty living in today's economy has become a norm for us and many other folks around the world. In the past because we are debt free, that's right no house payments, no car or truck payments and no Harley or boat payments, we would go out to eat or do what we wanted when we wanted. Those days have slowed down a tad as we pinch our pennies during these down days. Don't get me wrong we still do not deprive ourselves of every thing we just watch where we spend a little bit closer. Here are two major things you must do, not only living in today's economy but every day regardless if it is a lucrative time or not.


First, you must put yourself on a budget. I know, I know, a budget you say, I hate to be stuck in that kind of a rut! Well, at the very least you do need to figure out what you bring in each month and where it goes. So sit down with your spouse and write these things down. Get a handle on where the money goes you might be amazed at the wasteful spending you do every day. Then once you figure out what is essential compared to what is frivolous you can begin to cut back on the frivolous. Yes a mocha latte is frivolous no matter what you think.


Second, you absolutely must set aside an emergency fund. Begin with $1,000 and build it up to at least six months worth of essential living expenses. You will surprise yourself once that fund is there, and used only for emergencies, how much stress is relived from your life. Remember that emergencies are just that emergencies. Buying a new couch does not constitute an emergency. But finding yourself stranded with a blown head casket does. Not much feels better than being able to have your vehicle towed to the mechanic without having to worry about maxing out your credit card because you have the money in the emergency fund. Just remember to re-fill the fund as soon as you can. Living in today's economy can be tough but it does not have to be devastating if we are wise with our money.