Have you cut your spending due to the economic meltdown?

[sushi]

It is nice to see this be a wake up call and for many people build up a real savings. It is a huge stress relief for me personally having a healthy savings built up.

Agree.

How much do you keep in savings?

I believe that 6-12 months of gross earnings is a nice amount. So if you make 36,000 per year, that would mean 18,000 to 36,000 in savings.

This provides piece of mind by creating a buffer of 6 months to a year without income in a worst case scenario.

 

[Rodimus Prime]

Agree.

How much do you keep in savings?

I believe that 6-12 months of gross earnings is a nice amount. So if you make 36,000 per year, that would mean 18,000 to 36,000 in savings.

This provides piece of mind by creating a buffer of 6 months to a year without income in a worst case scenario.

My goal is to get to 6 months expenses. I am currently sitting at around 3 months expenses in savings. I started work in January so I am still building it.


It is just slowly growing. I have my bank make an automatic transfer from checking to savings every payday. This why I do have to worry about it and it at least grows at a steady rate. Then at the end of the month what ever I have over my 2 grand checking base line into savings.

Also I have 10% of my paycheck go into my 401k.

My parents drilled me into do not get credit card debt. They had to dig them selves out of pretty deep hole of credit card debt in the past and now it is pay it off the balance in full every month. If I do not have the money I do not buy.

 

[sushi]

My goal is to get to 6 months expenses. I am currently sitting at around 3 months expenses in savings. I started work in January so I am still building it.

Sounds good.

I wish that I had started a long time ago. However, at least I didn't wait like so many people do until they are in the 50's. By then it is way too late to start.

It is just slowly growing. I have my bank make an automatic transfer from checking to savings every payday. This why I do have to worry about it and it at least grows at a steady rate. Then at the end of the month what ever I have over my 2 grand checking base line into savings.

Nice system.

To get more into savings, I've cut down on the technology purchases. Surprising what one can save.

Also I have 10% of my paycheck go into my 401k.

My parents drilled me into do not get credit card debt. They had to dig them selves out of pretty deep hole of credit card debt in the past and now it is pay it off the balance in full every month. If I do not have the money I do not buy.

Good to hear.

Credit cards are wonderful when used properly. Unfortunately, it is way to easy to spend more than you make, or can afford to pay off at the end of the month. Interest charges can kill you.

The current economic situation has been a gentle (luckily) push to keep focused on saving, investing, and eliminating unneeded expenses.

 

[mark!]

Most of my income goes to the underground economy...so I haven't cut back spending.

My father hasn't cut back on spending either, but he has a plan if sh*t hits the fan.

 

[larapumkin]

havn go shopping for a month...
no..it's been more than a month...

 

[gmecca2]

Don't eat out as much: makes you feel much better about yourself and saves you money.

Definitely look for deals when I grocery shop. I stock up on chicken when its on sale.

I also save for everything I want before I buy it.

 

[Rodimus Prime]

Sounds good.

I wish that I had started a long time ago. However, at least I didn't wait like so many people do until they are in the 50's. By then it is way too late to start.


Nice system.

To get more into savings, I've cut down on the technology purchases. Surprising what one can save.





Good to hear.

Credit cards are wonderful when used properly. Unfortunately, it is way to easy to spend more than you make, or can afford to pay off at the end of the month. Interest charges can kill you.

The current economic situation has been a gentle (luckily) push to keep focused on saving, investing, and eliminating unneeded expenses.

I wish more people took a simple system like mine to try and get by. Instead of pushing the limits on what they do make. Yes I know I make fair amount more than the average person so it makes it easier for me to ramp up my savings but still I do not stress my income to its max. I have friends who are getting by are far less than me and still have a fair amount in savings.

Now do I stress some of my income. Yeah do try to push the limits of what I keep in the bank and in the way of month to month I have an artififle system going where my checking acount is kept low for a reason. It to prevent me from thinking I have money to spend. My savings account has that feeling for me I can not touch that money. It SAVINGS. Great way to help build it up is divert what I can.

For example if I have an unexpect expense come up I try to get by with out tapping my savings. Instead cut back until I rebuild my checking account to where it was. next month I going to have to figure out where to cut some cost to help absorb the 500 dollar car repair bill I will be taking on. I rather not have to tap savings to pay for it. Rather pull on my smaller reserve in checking which any time it gets less than 4 figures I get really REALLY uncomfortable.

it is a sad day that my uncomfortable reserve in checking is a lot more than some people emergency funds.

 

[benthewraith]

No option for spending more?

 

[coffey7]

No I go out to eat all the time and buy anything I want(nothing crazy). I am lucky for having a good running business. I wish I could lower the eating out spending. Its hard when you are running around doing jobs. Packing a lunch is hard since my girlfriend and I work together and we eat different way different things.

 

[Love]

We've cut our spending a little lately because we just got a renovation done. We're not too bad here in the economic happybubble that is calgary.

 

[GSMiller]

I would say that I haven't cut my spending as I'm pretty conservative as it is. One thing I have decreased is using my credit cards, and hopefully I can have them all paid off in a few months (it's only like $1,200).

 

[sushi]

I wish more people took a simple system like mine to try and get by. Instead of pushing the limits on what they do make.

Agree.

It seems many families live from paycheck to paycheck, which unfortunately, is very easy to do. Even dual income families do this.

I have friends who are getting by are far less than me and still have a fair amount in savings.

It's all about priorities.

For example if I have an unexpect expense come up I try to get by with out tapping my savings. Instead cut back until I rebuild my checking account to where it was. next month I going to have to figure out where to cut some cost to help absorb the 500 dollar car repair bill I will be taking on. I rather not have to tap savings to pay for it. Rather pull on my smaller reserve in checking which any time it gets less than 4 figures I get really REALLY uncomfortable.

Good plan.

Small expenses will come up. Car, dish washer, refrigerator, AC, TV, Microwave, will eventually need to be repaired or replaced. Best to have funds saved up when the need arises.

it is a sad day that my uncomfortable reserve in checking is a lot more than some people emergency funds.

Based on conversations with many that I know, most have a low Networth and very little savings. Of course many of these same folks have nice cars, expensive clothes, eat out all the time, etc. They live the high life.

Again, it's all about priorities.

A few years ago, I helped some folks find money for their IRA investments. This was back when the max was 2,000 per year (166.66 / month). It's surprising what we spend money on that could be diverted to investing and savings if we really wanted to. In most cases, common daily expenditures such as newspapers, snacks, lunch, drinks, bottled water and the like were draining their funds more than most realized.