What have you learned?
"What has this economic situation taught you?"
This was an interesting question I saw posed somewhere and I thought it would be great to put it out to you, my readers and see what you've learned. It might be something the rest of us have missed.
What changes have you made to your lifestyle, habits etc. Do you think they will be permanent?
What changes did you make previously that made dealing with the situation easier OR harder? And if you must say investing in "How To Own Your Paycheck Again!" made things easier that's OK but that's not what I'm fishing for. :>)
Anything you think would be helpful to others would be appreciated. Click on COMMENTS below and let's hear your (anonymous) story.
Thanks!
Leo
posted by Leo Quinn @ 3:49 PM
25 Comments
25 Comments:
Leo,
In the 50 years I have been walking this planet I have come to many conclusions, but when asked what I have I learned my answer is simple and it goes something like this:
First of all I believe that we as individuals get what we think about, so if anyone is thinking about the economic crisis that is exactly what they get. Why? because wherever we live in this world it is spread all over the internet, news channels and newspapers. It is what everyone on this planet is thinking about and worrying about, and guess what, it is also what they are all focusing on, so the natural laws of the universe kick in and give us all what we are thinking about and focusing on, whether it is what we want or not.
So, what I have learned? Not to focus on the things that I don't want and to focus on what I do want and put action towards that goal. In other words I have just said to myself what CRISIS..........Yes! as simple as that, I can't physically change the world or others thoughts, only my own.
If I were to offer a solution to all your e-mail list, it would be to buy and read Think and Grow Rich. Now here is an interesting fact as well, if they only read one page a day and I mean everyday, they would read the whole book once in 12 months. Think about it, you read this book once every year and your mindset will change. As if by magic, if everyone were to do this it would change the world's thinking and focus and just maybe.......well I know for sure the Crisis would dissappear as quickly as it has descended upon us.
Here is to your successfull future
Dermot Kelly
South Australia
We have learned to ask the question: "Do we really need this,or do we just want it?" Distinguishing between wants and needs has stopped us from doing un necessary things that would cost us money.
Alan
The most important thing I've got from the economic downturn is that you can't lose your positive outlook just because things are tough. Look at it as a challenge to your initiative and be creative, and take pride in that. Life is too short - my Mum always told me that, and for a long time I didn't get it, but now I very deliberately find something to enjoy in every day I get. Other than that, say "I love you" to those that matter while you still can!
1. That the habits learned when I was a student, in relation to saving, spending and budgetting are lifeskills because they are so useful to me now
2. To shop around
3. haggling is not shameful or mean but just a way to get a good bargain
4. We are not getting bargains today neccessarily - we are just paying the true cost becuase we were being ripped off for years
5. To check my bank account and if I'm not happy with the interest rate, ring and ask for a better account
6. Interest charges CAN be deducted - you just need to speak to the person with the pwer to do it.
7. No-one needs to pay bank charges
8. The second hand shops still exist.
9. To cook an extra batch of whatever is for dinner and bring it for lunch the next day, twice a week saves 400 euro per year
10. To buy my own jar of coffee for the office and use their hot water.
- 150 euro per year saved
(Guess how much my holiday this year cost? :-)
11. To keep a coin jar and put my loose change at the end of the week into it. It can all add up
12. To glean tiops from others and share your own on message board and forums
We are conservative spenders (my husband more conservative than I) who were formerly married to spendthrifts for a decade or more. Fortunately, we found each other 13 years ago.This economy has not affected us too much for the following reasons:
1) I started my own consulting business 9 years ago, so I could work from home AND enjoy the tax benefits of being self-employed. To prepare for starting my business, I paid off credit cards and auto the year before, and made sure I had enough savings to cover me for 3-6 months (depending on how my business went). I typically save 15-20% of my gross income each year.
2) I buy a lot of high quality used clothing and accessories (cookware, art, pocketbooks) at my local Salvation Army and other thrift shops -- and have done so for years. (Lots of crazy Americans wear something for a little while and then get rid of it!) I find it amusing that so many people are just now discovering the savings that this provides.
3) One of our 2 fuel-efficient cars is 14 years old, and well maintained. We use this one for local driving (up to 20 miles, but mostly around town) and save the other for long-distance driving. Since we both work from home offices, together we only drive about 20K miles/year. This is a HUGE savings on both gas and auto wear and tear.
4) In early 2002 we bought a modest but exceptionally well-built 50-yr-old cape (with a water view, on a dead end street) house w/20% down. It needed a lot of work, which we completed using a 5-6 year plan - and saving for each improvement/update, rather than borrowing. (Un-American, I know!) This is a home that we felt we could age in comfortably. Just as importantly, because it isn't too big (9 rooms including recently refinished basement den, of which 2 rooms are home offices) there isn't room to fill it up with too much stuff -- and it doesn't cost too much to heat in the winter.
5) Last fall, we bought a wood-stove fireplace insert. Living a rural area, my husband has been able to get a lot of firewood for the "cost" of helping to cut down dead trees in neighbors' or friends' properties. When we were ready/needed to, we bought an energy efficient fridge and a low-water-using, energy-efficient washer.
6) Finally, my mother raised me to buy nothing that wasn't on sale -- and she meant 50% off or more. I buy winter items in the summer, and summer items in the fall. We do a lot of shopping online - further saving time and auto wear and tear. These days most companies have regular free shipping specials to encourage purchases.
Leo,
I have learned that just because your world is crashing down around you, that you are still the same good person that you have always been and one year later down the road, I am still here. I am a survivor and I have been able to find resources. Gifts, I call them, from heaven. I have those "dark" days but they disapate, and the sun shines again. If I lose everything, I will still remain, and survive, and be resourceful.
Struggling in Ohio
Leo,
It's not only about money. It never is. I have observed that no matter what the economic situation, fear makes things worse and gratitude makes things better.
Fear makes people panic and make stupid decisions. Fear makes companies charge people more because they MIGHT default. Fear makes people selfish.
On the other hand, gratitude is something altogether different. We thank God every month that we paid off our mortgage several years ago. I am grateful for your How To Own Your Paycheck Again program. I've paid off two credit cards and will pay off a third this month. Even with one credit card company actively trying to cheat us, I'm not panicking because you've given me a system and I'm just working the system. I'm grateful that even if we lost our jobs, we have the ability to work and could do whatever we have to do to make it. I'm grateful that I have friends I can call who will drop everything and help and that they can call me and I would do the same for them.
I've learned the law of sowing and reaping and it is real. I have been sowing into people's lives through my business for years and even in this economic climate, my business is growing.
I've also learned that it's never too late to start over. Today is a new day. The next hour is a new hour. The next minute is a new minute.
I have learned to stay positive and not "buy in" to all the negativism in the media.
I have learned it is more important than ever to get out of debt. (Just revisited Debt Cruncher and it will be 3 years-Yay!!!).
I have learned that eating more meals at home not only saves a lot of money but has resulted in wonderful family time!
I have found that when asking for special reduced prices, it is more effective to talk to a person face to face. Usually on the phone, I get no satisfaction, but in person, I always get some special. Be nice though.
Leo,
I have learned through doing a spreadsheet of my spending and expenses for a month just once, that just buying things is not so much fun. It is much easier to resist spending now. Think what would happen if I kept up the budget checking!
I agree a lot of the economic panicking was caused by a bunch of feedback of panic causing panic. But we can get through anything with persistence and a good attitude. One of my favorites is: We are going to be just fine.
Ginny J., Bedford, IN
I purchased a Magic Jack to get my telephone service using my computer to save $400+ dollars a year. It works great! I have access to unlimited local, long distance, voice mail, 3 way calling fir zero dollars. it's awesome! I recommend it highly.
One can purchase a MagicJack at your local CVS, or online at www.magicjack.com
(1)I like to go out to eat, so I always look for discounts. Often, they're available but not promoted, so you need to keep your eyes open.
For instance, Appleby's has a Lunch-A-Bunch Club. Seven card-punches earns you an $8 credit for your next lunch. Monday and Tuesday are double-punch days, so you can get your credit after only 4 lunches.
They also have a Golden Apple Club that, if you're 55 or older, gets you an additional 10% discount.
These cards aren't handed out, but you'll usually find them at the front desk.
Don't be afraid to ask for take-out containers. Most restaurants serve huge portions, so it's like getting 2 meals for one price.
If you're a senior citizen, check the menu for Senior meals. Many places offer them, but they're usually on the last page of the menu.
(2)We don't subscribe to cable or satellite TV. With the move to digital television, a good outdoor antenna can pull in a nice selection of stations for just the one-time cost of the antenna.
Let me begin with noticing how nice it is to see all the positive comments!
Over the past 3 years, I have been drastically reducing my spending to get out of major debt. We get the basic cable, I gave up my home phone, wash clothes in only cold water, no convenience foods, hand me down clothes and shoes, very little money spent going out, watch every penny, etc. I am close to the end of the tunnel and found that I so much prefer the ease of a simpler life, that I will probably change very little when money is less of an issue. It seems to me that a more holistic approach to life is best on all accounts. The economic down turn has not truly affected me monetarily for several reasons:one is I am pretty much a minimalist already, another is that I have no savings, no retirement,no accounts to be affected and third, my customers tend to be wealthy enough, that they seem relatively untouched by the situation-hence, my business has remained pretty steady. I have even joked with my customers telling them that the economic situation doesn't frighten me because I know how to 'do poor'!
On the other hand, I have seen a major change in the attitude of my debtors. They are much more willing to work with me, seem to be more sympathetic to circumstances, willing to offer me options that were either not available before or they were not willing to give me the info I needed to take advantage of them. I never expected a free ride, nor did I expect anyone to forgive my debt. I always had every intention to pay it, but there were times that I needed some options that never seemed available until now. It has occurred to me that perhaps, if this type of compassion and cooperation was offered to those who were obviously trying to get out of debt and working hard towards financial security, perhaps the country would not have gotten into this mess in the first place. By simply being reasonable with me, I am much more able to pay what I owe so they get their money and I get out of debt. It can be that simple! So, perhaps it is that those of us who generally 'get by' for the better part of our lives have learned some from all of this, but the credit card companies and such have had the most to learn.
I agree Laurie...I too am pleased to see all the positive comments.
Thanks for yours.
Leo
Great posts already left! I'm working on adjusting my expectations and bad habits to avoid repeating some of the depressing mistakes I've made in the past. I'm still having a hard time with "need" vs. "want" and constantly question my perspective. Life's short and uncertain, and I'm trying not to waste it by worrying all the time, which I've done in the past. Developing a grateful attitude for EVERY day...
I have learned that, as a Nation, we have too much STUFF. I have taken stock of what is really important and am discarding the rest.
I have learned that we must all take care of each other and work together.
I have learned that we are not going to be able to DEPEND on the Government or anyone else to take care of us- we need to prepare for our own needs.
I have learned that "what you resist, persists" and that what you focus on is what you get.
I am learning to accept and enjoy where I am at and what I have and the people in my life.
Be Healthy, Be Joyous,
Susan
I like this comment "If you can't afford it, you don't need it" Too many people have been spending money they don't have and have gotten in trouble.
leo, I have learned that my husband & I will survive the recession by going back to some of the things that we did when we were 1st married. Set aside money every month before you go food shopping. Do not charge unless you have to & then only what you can afford to pay of when the check hits your account. Do NOT lie to yourself about money or to each other. We do not need anything as long as we have each other. We have been married for 48 years & have only been separated by war or choice or school.... Love your column, Loretta
We have gone from 2 incomes to one and traded our two one week vacations for some long weekends at home. We have reduced our spending to only needed items and cut way back on food goodies and night outs. We cut phone and cable to basic sevice only and got a cell phone in the next state to cover the area of most of our long distance calls cutting the talk bill by 90%. We switch to all genaric drugs on all Rx, cutting the monthy bill by 80%. We our working on weight loss to reduce the expense even more.
From Pam...
Leo,
I've learned that we can survive on one income and that I love being home so much, that it was worthwhile to start a home based business.
I’ve learned that I do not wish to return to the stress and long hours of my previous type of employment.
I’ve learned that the children, pets and my husband love having me at home.
I’ve learned that we can spend a LOT less when I am not working outside the home - and that even though I thought we were getting by frugally before, there were still some areas we could (and have) cut.
I have learned that I will feel much more secure once our debt is gone, and that once it is gone, I will be working for myself instead of working to support my bank and bankers. I don’t mind either, I just can’t wait to work for myself instead of supporting these other professionals.
And finally, I am thankful that I had invested in How to Own Your Paycheck several years ago when I did - so that losing my job only made a small blip in the road - instead of having the devastating effects it could have had if we were still drowning in debt and living paycheck to paycheck. My headstart is not what it was - and I am frustrated that it will take longer before we are out of debt. But we can certainly live with that, and with the other benefits that have come to us as a result of it. And soon enough, it will be just the mortgage we have left to pay. Credit cards and several lines of credit are well behind us. The rest will be soon. And that's a reason to celebrate! I am so thankful for what the downturn has brought to us.
Pam LeBlanc
Canada
From Wendy...
Hi Leo,
I cancelled my cell phone and both my husband and I went under our son's plan for $10.00 each a month. I was paying $42.00 for just me. Now we each have a phone for 1/2 the money.
From Bruce:
I purchased a piece of exercise equipment on an installment basis. I decided I did not want it and certainly did not want to pay the low monthly installment fees at exorbitant interest rates. I called them and told them I was going to return the product. Instead, they cut the price in half for me. I paid it off immediately and have started using the equipment on a regular basis. It's interesting how your health improves when the price is right.
Bruce
Made me look like a Genius
A while back I was sitting on some pretty decent gains in some of my investments... But still owed a good deal on my house. I had more than enough to pay off the mortgage in my stocks and money markets. I had a 4.72% mortgage and was sure I could do better than that with my stocks...
Leo encouraged us with two things in Paycheck that I thought were important
A> Paying your mortgage off early is a GUARANTEED (in my case $40,000) instead of paying off in 30 years. ( I was not sure I could raise $40,000 with my investments however) but was trucking along at 12 - 15% for a couple of years.
B> As I said earlier, I had some stock (not in the 401 k) that had done pretty well. Leo asks, What are you going to do when your stocks are worth a lot less and nobody wants to pay much for them????.. Wait it out or kick yourself (or some combination of the above).
So I decided to cash in the stock and take the hit on the capital gains (Remember those?)
I took this action in August of 2007. Now I look like a financial genius because I sold before the market tanked. Did I have any idea what grief was coming to my investments (No!)
I did it more because of the tips from How to own your paycheck again... I did Good!
Cheers
-Greg-
This is a time for opportunity and powerful growth. I became unemployed (9to5) and I accepted my situation,I took the time to be still with myself and began to think about me, not the me with responsibilities, the real me. How do I want to work? Who do I want to surround myself with while I work? I want to work happy. I like to work with people who care about others, who enjoy sharing their knowledge. I like watching people happy at what they do for a living. I feel good when my work is acknowledged and valued. In my previous job, I didn't get enough of what I really needed. I was stuck and losing that job was good for me! Sure, it was scary at first, but I looked at my situation differently. I found a special way to help people and I built my website. I'm writing, I also have a virtual franchise business that cost me next to nothing to get started, so now I have a home office and I have support and get help from the new people I have met through my new JOB. What worked for me was placing my energy into what I want and not into the loss of a job. You get what you focus on.
Patty Hanson
New Entrepreneur USA
From Pam...
I am learning that this process ,just like life, does not always go smoothly.
My mind set has changed as far as spending. However, at every turn in "life's road", adjustments must be made and rules need adjusting. Sounds like life.
You told me when we communicated last that credit card companies can do whatever they want to do! Soooooo true.I have a fixed promotional for the life of the balance. Sounds air tight.
So here is what Chase did; they increased the minimum due each month. That put a kink in my entire payment set up. Although, if this is doable, I will be paying off this debt faster,even though I have had to readjust my priority list.On the very down side, I feel as though I am powerless to control my own debt fate, which is very unsettling. Well, my net worth is not nearly as important as my self worth!
Thanks Leo,
Pam
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