budget tightening

papayahed · 02-28-2009, 09:00 AM

I was talking with a friend who told me that her and her husband have made a conscious decision to curb their spending habits in respect to those that are in financial trouble. I know the down economy hasn't affected them yet and I can understand tightening the budget because of the economy but to base it on others feeling seems a little strange to me, and am I an unfeeling heel because I never thought of it???

cympreni · 02-28-2009, 09:29 AM

Seems strange to me. Sure you should take steps to prepare for emergencies, but spending helps the economy.

Starmie · 02-28-2009, 09:30 AM

Sounds odd to me. What difference do they think it'll make to those who are genuinely struggling? How will anyone else know about it? Don't get it, I'm afraid. Maybe I'm unfeeling too.

mad scientist · 02-28-2009, 10:00 AM

I can understand it.

DH and I are in recession-proof jobs (healthcare and education), in fact, both our professions will probably profit from the economic downturn. But given the circumstances that some of our neighbours and friends are facing, this may not be the time to throwing fancy parties and buying fancy cars.

I'm not curbing my normal behaviour but I would think twice about being extravagant right now (not that I usually am anyways)

Gemini13 · 02-28-2009, 11:04 AM

Quote:

Originally Posted by cympreni

Seems strange to me. Sure you should take steps to prepare for emergencies, but spending helps the economy.

I was thinking the same thing. Unless they're planning to donate their money or something, I don't understand how they think they're actually helping anything.

mrspoppers · 02-28-2009, 11:12 AM

Quote:

Originally Posted by Gemini13

Quote:

Originally Posted by cympreni

Seems strange to me. Sure you should take steps to prepare for emergencies, but spending helps the economy.

I was thinking the same thing. Unless they're planning to donate their money or something, I don't understand how they think they're actually helping anything.

Yeah, they're actually hurting the economy.

wanderlust · 02-28-2009, 11:42 AM

Papayahead, no you are absolutely not an unfeeling heel to think the way your friends are thinking.

I agree with what Cympremi said, but as illogical as it may seem, there are many out there that feel guilty that they still have jobs and money and that others are struggling. Then there are others like DH and I that are doing well financially right now, but worry that what we have seen happen to some around us could easily happen to us. We are both pinch pennies anyway, so we haven't changed our spending habits much if at all, but I still sometimes worry....

newcurly · 02-28-2009, 12:28 PM

Quote:

Originally Posted by mad scientist

I can understand it.

DH and I are in recession-proof jobs (healthcare and education), in fact, both our professions will probably profit from the economic downturn. But given the circumstances that some of our neighbours and friends are facing, this may not be the time to throwing fancy parties and buying fancy cars.

I'm not curbing my normal behaviour but I would think twice about being extravagant right now (not that I usually am anyways)

People seem to think that healthcare and education are recession-proof, but there are LOTS of layoffs going on at the big medical center 10 miles up the road from me. I'm not sure how the smaller ones are faring, though.

tc · 02-28-2009, 12:29 PM

Maybe they are just too shy to admit their real reasons.
Maybe they are trying to spend less so they can pay off debt.

afrosheenqueen · 02-28-2009, 12:44 PM

Quote:

Originally Posted by newcurly

Quote:

Originally Posted by mad scientist

I can understand it.

DH and I are in recession-proof jobs (healthcare and education), in fact, both our professions will probably profit from the economic downturn. But given the circumstances that some of our neighbours and friends are facing, this may not be the time to throwing fancy parties and buying fancy cars.

I'm not curbing my normal behaviour but I would think twice about being extravagant right now (not that I usually am anyways)

People seem to think that healthcare and education are recession-proof, but there are LOTS of layoffs going on at the big medical center 10 miles up the road from me. I'm not sure how the smaller ones are faring, though.

There are budget cuts going on in education too. I feel sorry for the school districts that invested money in the mrotgage stock market mess. They thought they were safe.

LoloDSM · 02-28-2009, 12:51 PM

I don't think you're a heel for not thinking of it, but I can understand where your friends are coming from. I refer to it as "middle class guilt." I've felt bad for what I have when so many others are suffering.

Last year during the floods, I saw some people in my neighborhood (across town from the area that was wiped out) driving around in their Mercedes convertible with the top down. The disconnect between the people who had just lost everything and those who had so much was very striking and sad to me. Does that make sense?

mad scientist · 02-28-2009, 01:36 PM

Quote:

Originally Posted by newcurly

Quote:

Originally Posted by mad scientist

I can understand it.

DH and I are in recession-proof jobs (healthcare and education), in fact, both our professions will probably profit from the economic downturn. But given the circumstances that some of our neighbours and friends are facing, this may not be the time to throwing fancy parties and buying fancy cars.

I'm not curbing my normal behaviour but I would think twice about being extravagant right now (not that I usually am anyways)

People seem to think that healthcare and education are recession-proof, but there are LOTS of layoffs going on at the big medical center 10 miles up the road from me. I'm not sure how the smaller ones are faring, though.

I guess I shouldn't have been so general about it. I feel confident that DH and I will both have secure incomes through this recession, lets just put it that way.

Lolo's post about "middle class guilt" is what I was trying to describe. It seems insensitive to other people's suffering to be making big purchases right now. Even though like others have said, spending can only help the economy right now.

This is also a good time to be investing for the long term, so its also not unreasonable that people who have extra money on hand might decide to save and invest rather than spend of material goods.

mrspoppers · 02-28-2009, 01:40 PM

Mad Scientist, I imagine you don't have the same issues with education and healthcare as we do down here.

cympreni · 02-28-2009, 01:44 PM

Quote:

Originally Posted by LoloDSM

Last year during the floods, I saw some people in my neighborhood (across town from the area that was wiped out) driving around in their Mercedes convertible with the top down. The disconnect between the people who had just lost everything and those who had so much was very striking and sad to me. Does that make sense?

I seen people like that here too. During the flood, we were lucky, it only got to our porch. We had no power for two days, lost all our food. My mom had 3 or 4 feet of water in her house. Got as bad as 6 ft in some areas in town. Many lost their homes, had to go without water and electricity much much longer. DH was at the store the next day, got behind a woman throwing a spoiled brat fit because she had to go without power for 2 whole hours and she missed her tv show! She's lucky she didn't get slapped.

mad scientist · 02-28-2009, 01:50 PM

Quote:

Originally Posted by mrspoppers

Mad Scientist, I imagine you don't have the same issues with education and healthcare as we do down here.

Yeah, I didn't think of that when I posted. Sorry!

love yourself first · 02-28-2009, 02:32 PM

Quote:

Originally Posted by mad scientist

Lolo's post about "middle class guilt" is what I was trying to describe. It seems insensitive to other people's suffering to be making big purchases right now. Even though like others have said, spending can only help the economy right now.

This is also a good time to be investing for the long term, so its also not unreasonable that people who have extra money on hand might decide to save and invest rather than spend of material goods.

I can understand this. It seems out of touch to be throwing around disposable income when so many are hurting, out of jobs, in fear of being laid off or have family, friends and acquaintances in those situations.

I'm not sure about investments right now though. Saving/hoarding cash is probably more likely right now.

And I agree that spending helps the economy, but has to be in reason, within one's comfort zone and in light of a constant, daily barrage of horrid news about the economy. In the current climate, it's only natural that everyone is adjusting spending, saving and investments habits regardless of what you earn or what your circumstances happen to be. That said, I don't think the OP should feel bad about what her friends are doing or raised. Just maybe reflect on it as she has done in starting this thread.