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Maflynn · Oct 22, 2008, 09:17 AM

As the title goes, is the faltering economy and falling stock market adjusting what you buy. For instance are you holding off upgrading your computer for another year or sticking with your car a little longer?

osiris · Oct 22, 2008, 09:29 AM

The only effect I feel from the economy is the cost of food.
Prices seem insane compared to other goods/services - almost $6.00 for half gallon of milk, eggs $4+ dozen...
But the economy has not limited me, and I am completely out of the stock market.

RAILhead · Oct 22, 2008, 09:36 AM

No. I save money, I don't squander it.

Doofy · Oct 22, 2008, 09:37 AM

No affect at all.

But then, my buying habits tend to be "buy the best and make it last 20 years" - I don't tend to upgrade my stuff every year.

Maflynn · Oct 22, 2008, 09:48 AM

Originally Posted by osiris

Prices seem insane compared to other goods/services - almost $6.00 for half gallon of milk, eggs $4+ dozen...
But the economy has not limited me, and I am completely out of the stock market.

Agreed and I'm almost out of the stock market myself but not by design. I've lost a huge percentage of my 401k value and if the trend continues, it will be worth pennies before too long.

Arkham_c · Oct 22, 2008, 09:55 AM

It's affecting me. I finished my basement this summer, and added a home theater room. I've not yet bought the $10,000 worth of equipment to finish it, and I am holding off. The main reason I am waiting is that I am worried about the security of my job, and of the job market in general, so I'd rather have that $10k earning interest until I'm sure my future earnings aren't in doubt.

Laminar · Oct 22, 2008, 10:06 AM

Originally Posted by Doofy

No affect at all.

But then, my buying habits tend to be "buy the best and make it last 20 years" - I don't tend to upgrade my stuff every year.

How's that Apple //c treating you?

ort888 · Oct 22, 2008, 10:30 AM

Yes, but not to a great extent.

It's getting a little scary for me, since my company is very reliant on the housing market. We've had many layoffs and are currently in a company wide wage-freeze. I think my job is pretty safe for now, since I'm well liked and rather useful, but if this keep up for another few years who knows. All bets are off.

I'm definitely being more careful with my money, but I'm not living like a pauper either.

Maflynn · Oct 22, 2008, 10:40 AM

I'm looking to reduce my debt because of the economy and also that's what I should be doing anyways but I am looking at getting a new MBP which means my credit card will take a hit. Not a huge hit because I'll sell my current laptop which will help offset the cost but still I'm having second thoughts.

Doofy · Oct 22, 2008, 11:05 AM

Originally Posted by Laminar

How's that Apple //c treating you?

My Atari Stacy 4/40 is doing just fine, thanks - still in use today.

Jawbone54 · Oct 22, 2008, 11:06 AM

No effect here. I'm still poor and cheap.

Hawkeye_a · Oct 22, 2008, 01:38 PM

My main worry now, in the short-medium term is the security of my bank deposits.

Railroader · Oct 22, 2008, 01:49 PM

It hasn't affect me, but the recent drop in gas and other prices have been nice.

I have been considering a new car purchase, but I am tempted to wait for some more developments in automotive tech to come out. Perhaps I'll just buy a nice used car instead. But the '03 minivan is currently doing a very nice job and hasn't had a single issue yet, so I might hold out a few more years.

Originally Posted by osiris

The only effect I feel from the economy is the cost of food.
Prices seem insane compared to other goods/services - almost $6.00 for half gallon of milk, eggs $4+ dozen...
But the economy has not limited me, and I am completely out of the stock market.

Where do you live?!?

Milk is ~$2.90 per gallon here, and eggs are ~$1.50 per dozen. The only thing I have really seen rise in price is fresh fruits/veggies, and prime grades of beef.

osiris · Oct 22, 2008, 01:57 PM

Originally Posted by Railroader

Where do you live?!?

Mostly NYC (Manhattan). Not everyone here is fabulously wealthy.

Don't even get me going on the price of 'fresh' fruit/veggies. Overpriced dried up crud imo.
Fortunately I travel to a great farmer's market a couple of hours away.

Dakar V · Oct 22, 2008, 01:57 PM

I'm a little torn. I haven't done much frivolous spending this year, but at the same time, I feel like I should save every penny in case the unthinkable occurs.

I was/am looking into buying a new receiver for the first time in 8 years, and the fact that its been so long and that I easily have the funds available might push me to buy. That and it seems like a passable deal.

On the other hand, I think I'm going to push off going HD for another 6 months, at least. Something about a large one-time expenditure seems more palatable than increasing a recurring monthly fee.

Railroader · Oct 22, 2008, 02:06 PM

It's actually ironic, that putting off purchases during a recession actually makes a recession worse.

Dakar V · Oct 22, 2008, 02:07 PM

I forgot to say I might purchase it under the guise of helping the recession.

Railroader · Oct 22, 2008, 02:08 PM

That's the spirit!!!

Dakar V · Oct 22, 2008, 02:11 PM

Whatever, I bought a MacBook and took a trip this year. That like 30x more than I usually do for the economy most years. You can't lay the recession on my doorstep.

Railroader · Oct 22, 2008, 02:18 PM

It is ALL your fault. You should have bought a MacBookPro, and went on a multi-state monthlong tour of the heartland buying up trinkets and baubles from every city you toured. You should be consuming, you consumer!

Dakar V · Oct 22, 2008, 02:25 PM

Hey now, that's what got us into this mess in the first place!

Railroader · Oct 22, 2008, 02:26 PM

Blasphemy!

Trygve · Oct 22, 2008, 02:39 PM

No major changes, but certainly more caution during these times. We always have saved a lot for a rainy day.

We are seeing a strong surge in the USD which has helped things here, but is not good for my foreign currency accounts since I tend to keep about 1/3 in USD, 1/3 in CHF, and 1/3 split between GBP and EUR... plus a bit in CZK and AED. We're coming back to the US for the holidays and may stay on for the longer term... everything in the US is so amazingly cheap.

olePigeon · Oct 22, 2008, 04:06 PM

I have at least 30 more years before I have to worry about my 401(k), so I don't sweat over it.

macintologist · Oct 22, 2008, 04:58 PM

I'm a poor college student who doesn't own anything. To hell with the economy, I don't give a crap. Deflation FTW

KeriVit · Oct 22, 2008, 05:04 PM

Yes, actually. I tend to try less expensive brands, look for sales, and just hold off on certain things. But, it's mostly because I'm broke and the economy has made things more expensive. Well, except for gas that is.

olePigeon · Oct 22, 2008, 05:37 PM

Originally Posted by KeriVit

But, it's mostly because I'm broke and the economy has made things more expensive. Well, except for gas that is.

And houses! I'm actually looking into buying a house next year. I never, ever thought I'd own a house in the Bay Area. Median prices have dropped to $400,000! That's 50% drop over the past few years, 30% of the drop was this year alone. Supposed to continue to drop into next year. All the prices are deflating to be comparable to the rest of the sane country.

I feel bad for all the home owners out there (my dad was going to sell, but now has to hold off for a few years), but man is it awesome for a renter like me.

Tom Servo ... Check
Crow T Robot ... Pending
House ... Pending

Never thought I'd see that list close to completion.

SebNoker · Oct 24, 2008, 06:41 AM

Yes, im not buying anything, i have no money.....

shifuimam · Oct 24, 2008, 08:15 AM

Nope. I'm financially responsible, so all this isn't really affecting me. In fact, I just bought a new laptop (my Aspire One) and a Wii Fit last week.

Oh, and @Railroader: I'd keep the minivan. A five-year-old car will likely hold out for much longer than that.

I did, however, have a heart attack when I looked at my 403(b). I've lost nearly 25% of it in the past two quarters. Good thing I have 40-odd years to recover from that before I retire...

The Godfather · Oct 24, 2008, 08:16 AM

Originally Posted by macintologist

I'm a poor college student who doesn't own anything. To hell with the economy, I don't give a crap. Deflation FTW

...until you are out in the job market.

KSE7696 · Oct 24, 2008, 08:20 AM

I'm actually jumping into the stock market a little right now. It's new to me and something I have been wanting to get into for a few years now. I've got a little in my savings I can play around with, so I'm taking advantage of it and buying some good deals. Sit on them for 10-15 years and see what happens. At my age (32) it may actually be a good time to get into it right now and hold onto it for the long haul... and maybe buy a little more here and there over the next few years

I guess I will see what happens!

Kevin

Maflynn · Oct 24, 2008, 08:31 AM

Well I did my part to help the economy - I bought a new MacBook Pro.

With the stock market sinking daily and what remains of my 401k quickly disappears , I'd not be so quick to jump in. I've lost 40% to 50% of my 401k this year

Oct 24, 2008, 09:47 AM

Doesn't affect me at all. I haven't had debt in years, save a substantial amount of my paycheck and rent a meager house.

The only thing it's done is kind of kicked my butt a little to learn how to be more self reliant in terms of growing my own food and investigating alternative energy methods around the home.

Mac User #001 · Oct 24, 2008, 09:47 AM

No effect on what I buy. Though the porn industry hasn't taken a real hard hit yet

KSE7696 · Oct 24, 2008, 10:06 AM

I'm looking at 10 or 15 years down the road. I'm sure there will be some growth in the market at some point during that time. Besides, the stocks I'm buying are less than $10 and I'm not really sinking a lot of money into it right now... so if I take a hit in the short term I'm not going to loose sleep over it. I will ride out the panic that is in the market right now. There really are some great deals out there right now on some still very solid companies. Some are just seeing the snowball effect unfortunitely from all the panic, even if they report decent numbers.

But, this is still new to me, so I'm learning and I'm definitely not going to "sink" my savings on it. I'm just getting my feet wet a little and seeing what happens for the long term.

Kevin

moep · Oct 24, 2008, 10:07 AM

Nope, not at all.

shifuimam · Oct 24, 2008, 10:19 AM

Originally Posted by Maflynn

Well I did my part to help the economy - I bought a new MacBook Pro.

With the stock market sinking daily and what remains of my 401k quickly disappears , I'd not be so quick to jump in. I've lost 40% to 50% of my 401k this year

Sounds like it's time to move what's left into a bond fund. Low interest, but guaranteed no loss.

That's what I did last year with my 401(k) when my company's stock was starting to tank and the economy was starting to slip. Saved myself a big loss. However, when I started this job, I dumped everything from my 401(k) into the 2045 premix option in my 403(b) and haven't touched it since. Stupid, stupid me.

Maflynn · Oct 24, 2008, 10:21 AM

I already started doing this earlier this year, but if I do that now, I'll realize the loss.

Its discouraging to say the least, why should I continue to put money in my 401k only to see it disappear.

shifuimam · Oct 24, 2008, 10:27 AM

Understandable. How old are you - when do you plan on retiring? I'm only 24, so I can handle a big hit to my retirement right now. I feel bad for my 55-year-old buddy at my last job; he's lost tens of thousands of dollars in the past two years.

Maflynn · Oct 24, 2008, 10:40 AM

I feel like I'm in no-mans land. I'm in my 40s I feel my age being what it is, means that it will be difficult to make up the losses that I've incurred.

I'm not really depressed since there's nothing I can do about it. I'll keep working, and living as I normally do but I'm not so sure I'll sacrifice my lifestyle so I can stash more money away in the market.

I don't think this is going to be a quick turn-around and I do think its a possibility that I could lose everything I have invested or at least the balance will be pennies on the dollar

shifuimam · Oct 24, 2008, 10:50 AM

It might be worth it to move SOME out. I'm looking at savings accounts and CDs for my money right now; the mutual fund market is just too volatile.

You can't do anything about your existing losses, but if you're able to diversify your 401(k) at any time, it might be worth it to put all future contributions into a bond fund so you don't lose more money than you have to.

Gankdawg · Oct 24, 2008, 11:11 AM

Yes. My income is partly commission based, so if I make less, I spend less. Except on my 401K that is. I just increased my contribution. Been meaning to do that for a while, but now that the market is down, it's the best time.

Railroader · Oct 24, 2008, 12:23 PM

Originally Posted by shifuimam

It might be worth it to move SOME out. I'm looking at savings accounts and CDs for my money right now; the mutual fund market is just too volatile.

You can't do anything about your existing losses, but if you're able to diversify your 401(k) at any time, it might be worth it to put all future contributions into a bond fund so you don't lose more money than you have to.

Sell low, buy high!