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.