<p>I have always been a conservative spender so We are getting by OK. </p>
<p>I vowed to not spend more on gas so I spend the usual $40 a week and when the tanks on the cars are dry we quit driving. Of course extra for vacations and unusual travel.</p>
<p>I ride my bike to work now. It is 1.5 miles each way so no big deal.</p>
<p>I think the biggest change is to not go into debt of any kind until we see the end of this down turn. That could be awhile frankly. Cash only purchases and saving up for bigger things just like my parents used to is back in style. Avoiding all loans including credit card and student loans.</p>
<p>I see small harbingers of the downturn all around me. For instance, when I traveled by air in June, I didn’t have a seat mate on any of my four flights, and the planes weren’t close to full. The airline had cut the direct flight I’d taken to the same destination just a few weeks earlier, and I notice fewer options on other routes as well. I see more cuts in the cards, too, with rising fares on the flights that remain. I looked into a European junket and thought at first that I’d found a reasonable fare for all three of us, then I quickly realized I was looking at just one ticket! </p>
<p>So now it’s “Stay-cation” time. Fortunately, we belong to a nearby swimming pool, and I actually look forward to some quiet time at home. The pool isn’t terribly expensive, and there’s always been a four- or five-year wait list to get in (even worse than Harvard, eh? Well, at least here you can get in if you wait long enough … no super SATs required. ) But just this past week, I spotted an ad in the local newspaper attempting to lure new members to the pool with pro-rated prices. A sign of the (bad) times for sure!</p>
<p>In the admissions world, I’m seeing more queries about honors colleges in public universities as an alternative to the pricier private schools. Perhaps the silver lining to this cloud is that, if the public schools can draw more top students away from the Ivies and their ilk, it might take some of the frenzy out of the admissions process overall.</p>
<p>No changes here on my end but I have seen my day-to-day costs increase due to gas and energy costs. My business continues to boom and I’m actually finding myself increasing my spending on non-essential goods as a result. However, as a “safety” net, I do have considerable investments and cash flow to offset any downturn in income.</p>
<p>Our local economic outlook remains very strong and stable. A key indicator is our local real estate market which continues to thrive. If I remember correctly, our April and May 2008 statistics report about 100 homes sold at an average of $1.8 million (closing costs ranging from $500k to $10.5 million). Average price per sq/ft. is roughly $400.</p>
<p>However, as grateful as I am for the good fortune, I know that other people aren’t so lucky. Energy costs will continue to eat up a large portion of the public’s income and with that comes less and less discretionary spending.</p>
<p>We’ve been cutting back significantly anyway because S1 is heading off to college in two months. We did not limit his choices to the best FA deal (though the school he chose did give him merit $$). The housing crisis convinced us that the HELOC route we’d planned is a bit more risky than we’d like. I am VERY thankful to have just gotten a part-time job with my former employer – an excellent reason not to burn bridges in one’s life! </p>
<p>We always have consolidated errands, trips, etc. Our cars have 145K and 113 K respectively, and need to last for the better part of the next six years until both kids are out of college.</p>
<p>We bought a smaller house than we could afford ten years ago, as we did not want to be dependent on two incomes. We are notoriously thrifty, as we both come from families that were always on the edge economically. (We were both EFC = zero kids, and believe me, that <em>meant</em> zero family support.)</p>
<p>RE: Medical insurance – I was diagnosed with cancer at age 41. Kids were 10 & 11. No family history. If we didn’t have coverage we’d be bankrupt by now. The oral chemo I take every day (and will for the rest of my life) costs $52,000/yr. Contemplating that expense without medical insurance and the damage it would cause my family would take me down a road I don’t even want to think about. </p>
<p>Keep your life insurance coverage, too – I bought mine when pregnant with S2 (now a rising HS junior) and got an automatic increase rider. It has (miraculously) kept up with the pace of inflation in higher education. If anything happens to me, their college expenses are covered.</p>
If gas only goes up then this would be true but even then, assuming that about 8 gallons are going in for the half tank and that gas had gone up $.03 in the few days that’d be a whopping savings of - 24 cents. This is nowhere close to worth the hassle for me. One would be better off letting the tank get lower and driving a bit further to the less expensive rather than more convenient station. Of course, if the price of gas goes down (as it did here the last time I filled up - surprisingly) then it’d actually cost more. I can’t imagine going to lengths like this over a sometimes savings of a quarter (but sometimes loss).</p>
<p>Nobody mentioned their retirement or other types of investment accounts (529, for ex.)… That’s one thing I worry about. It’s hard to see that the accounts are worth less everytime you get a statement. And then that’s little you can do about it…</p>
<p>Other than that, I just don’t feel like driving anywhere. Before gas cost so much, I would drive to my favorite parks every once in a while for a walk. Now I walk in my neighborhood. I am not a shopper, but I would go to the stores sometimes to get a little something, just for fun. Now I only go anywhere if I absolutely need to.</p>
<p>“Nobody mentioned their retirement or other types of investment accounts (529, for ex.)… That’s one thing I worry about. It’s hard to see that the accounts are worth less everytime you get a statement. And then that’s little you can do about it…”</p>
<p>I looked at 529s a long time ago and I thought that they were a crazy idea given the lack of transparency into what they are holding. I think that Mutual Funds are a little better with holdings reports from time to time, the name of the fund manager available and an idea of the fund’s philosophy. Our 401K plan is administered by Fidelity Investments and they have an option called BrokerageLink which functions similarly to a self-directed IRA. I can buy and sell stocks, exchange traded funds, precious metals, bonds and mutual funds. </p>
<p>They have a Treasury Money Market fund available for those that are paranoid about the safety of their regular money market funds (they have some SIV exposure in the money market funds but it hasn’t been a problem yet).</p>
<p>One thing about people doing well in this thread is that their investments have performed well. Might be worth its own thread.</p>
<p>Sally, I would think that travel costs also play into these queries. I can tell you that my son recently had an informational interview at a private LAC, which included the entrie family (my son is a rising a junior, so this is how they chose to handle it. Also this is a small school so this was the equivelent of an “info session” as well). The admission counselor let us know that our son’s travel costs would be considered as part of the FA package because they do realize that we would have higher travel expenses than the typical student at this school (they do attract more regional students). We did inquire as to how many plane trips they would count per year when figuring travel expenses, but the counselor was unsure about that.</p>
<p>No changes here. I sometimes wish our crazy schedules would slow down! Just today we had three cars up at the lake so we could all come and go at different times! We still travel alot with D2’s sports…last week Indiana, the week before Michigan and another coming up in Iowa. No one has pulled out because of gas prices or room expenses.</p>
<p>We are definitely a lot more cautious with money and where we travel because of high gas prices.
We had to sell our house and move to a smaller rental but that was because my sister and I started college last year… no way could we afford to live in the area we were in. Property taxes would have killed us- the only reason why we lived in the area was for its ‘super-good public school system’. US News confirmed its awesomeness recently so that will keep people happy haha.</p>
<p>I drive 90 miles a day round-trip Monday through Friday for work. If I left my tank go to empty, it will cost me $90-95 a week in gasoline. I currently pay $70-75 in gas per week doing the half-tank method. It is a significant savings. Gasoline is averaging $4.19/gal for regular in this area.</p>
<p>I should make myself more clear: I STRONGLY recommend the half-tank method if you are commuting to work.</p>
<p>My company has announced it will be relocating to a part of the country I’ve never imagined living in. Because of the downturn, I’m seriously thinking of moving with the company. A good job is hard to find.</p>
<p>We’re also seriously debating visiting my oldest friend who lives a seven-hour drive away. That’s a lot of gas. </p>
<p>But the thing I’m most happy about is that S1 has a full-time job starting in August, so I can stop paying for his COBRA!!!</p>
<p>wow 90 miles a day?
that would drive me insane.
I commute 14 miles each way & have limited that to once or twice a week.
My H drives 10 miles each way- but only carpools sometimes.</p>
<p>But the thing I’m most happy about is that S1 has a full-time job starting in August, so I can stop paying for his COBRA!!!</p>
<p>I am * veryhappy* for you.
Cobra is soo expensive.</p>
<p>Yes, I was just laid off two weeks ago when the construction related company I worked for was taken over by the bank - the media didn’t even cover it - It would have fit perfectly in their plan to convince us that the economy is faltering. Go figure! </p>
<p>I’ve wondered whether the economy was a factor in students from my daughters large public high school choosing UW Madison in record numbers, double what they’ve been in each of the last five years.</p>
<p>And yes, I believe CCers as a whole are affluent or in positions of employment that are immune to the effects of this economy so far.</p>
<p>Yes, it is insane but I am used to it now. The economic situation is too unstable to be choosey (8.5% state unemployment rate!!). My job pays well, and for now it’s still cheaper for me to commute than pack up and get an apartment closer to work. I learned other ways to endure my commute. I am saving $20-30 a week doing the half-tank method. That’s $80-120/month in savings! I get to use the extra money on other needs.</p>
<p>We live in a rural area where its a long ride everywhere. There is no bus service. Car pooling is not an option b/c I often have to work OT. My h works in the opposite direction with the same job issues therefore he has to drive also ( 30ish miles each way). We have cut any extra travel out. I had to go out of state for a family funeral and the $50 in gas made me choke. We have always lived as economically as possible but gas prices have been a problem. Health insurance just went up almost $150 a month, too. I agree with the others - don’t drop it!!! New clothes were a necessity when the dress code at work changed but on sale, only. I am careful, careful, careful. We’ve never had cable and we sure won’t now. Used cars for the kids. And we earn excellent salaries for where we live…but we just won’t waste it.</p>
<p>northeast mom-Typically, colleges factor in two round-trips per year for domestic students and one for internationals, though I’m sure that there are variations on that theme.</p>
) But just this past week, I spotted an ad in the local newspaper attempting to lure new members to the pool with pro-rated prices. A sign of the (bad) times for sure!</p>