There are so many fantastic things on sale right now. I see J. Crew outfits on sale for 50%-60% off, I see Mexican and Carribean cruises marked to less than $80/day, I see restaurants with great fixed price menus. Disney World is having a sale where you get 3 free days when you purchase 4 days. In short, right now is a really good time to consume.
But, alas, I feel so uncomfortable handling large cash outlays right now, given Dow’s recent performance (7,500?!?!) and the general air of gloominess about the economy (newest villan: deflation). So all these great deals are happening all around us, but I, like many consumers, are too worried to take advantage of them. Oh, the irony.
Also, I’ve been seriously considering moving back home if I were to be laid off. As far as I can tell, I’m okay on that front, but in this economy I’m not assuming anything.
Before, I had said that I’d want to stick it out for as long as possible before I move home. But after hearing all these reports of people job-hunting for months on end, I think the more prudent action would be to cut my costs as dramatically as possible, as soon as possible. (If I move home, my monthly costs would drop to $700-$800). So my plan has changed. Instead of waiting ’til I’m at 6 months without a job before I move home, I’ll probably shorten the time to two months. Let’s hope I won’t have to actually put my plan into action.
P.S. I just re-read my post, and I realize how lucky I am, even in the midst of this economic uncertainty. I am lucky that I am young and well-educated. I am lucky that my jobs enabled me to save a relatively robust emergency fund. I am lucky that I have parents who live nearby. I am lucky that I don’t have a mortgage or children. I am lucky that the only person I have to take care of, right now, is me (and even then I will have the support of family if I need it).
My opportunity cost is so low compared to what it would be at any point later in my life. If I’ve got to face the “biggest financial crisis since the Great Depression”, this might be the best time for me to face it.
Hey, sounds like you’re making good plans. It’s worth it 🙂 My partner and I were both made redundant (from the same place) at the end of the summer and so in this rather tough time we are both looking for work, and to cap it all, we’re trying to relocate elsewhere! Good timing all round really! Luckily we have a good base of savings and can take a bit of time to sort things out, and she now has a job offer so maybe things will start to pick up and we can look for a new place to live.
The redundancy was expected so at least it wasn’t a nasty surprise but I didn’t ever think that it would be three months later without even a sniff of a job for me.
You have more willpower than me – I see the sales and I will buy! Luckily my schedule is so packed that I can’t even think about a vacation right now.
It’s a nervewracking time, but I think you’ll sail through it. Having the safety net will be key – both in terms of cash savings and your family’s support. And someday we’ll all get to be the nutty grandma who saves everything because she grew up during the Subprime Crisis (or whatever they’ll be calling it then).
Wow…
Makes me wonder what my chances are in the States to move.
I am very glad that I have my parents to fall back on for support – especially if I need to move back home! I also only have myself to worry about and I have a low entry-level salary so I generally don’t consume a lot and I am still able to save around $500 per month plus retirement. 🙂
And I agree – our opportunity costs right now are VERY low, and we are in great positions in terms of what is occurring in the economy.
Good luck!
When I got laid off back in April, my parents told me (half jokingly) that they wouldn’t let me move back home until I had no money left. I think what they were trying to say is that they don’t want me giving up too soon, and that they know I have plenty of savings to tide me over. Luckily I got a new job in July, so I was nowhere near the end of my savings.
But I also agree, and I think people may have even said it, that if there’s going to be a layoff or two in our lives, now is a good time to be out of a job (compared to later in our lives).