I have been thinking about this alot lately: at what point are other businesses going to suffer because people are now using all their disposable income for food and gas? I know that we are not buying clothes (except yard sales), no fast food, no restuarant eating because we are using most of our extra money for gas and food since the prices have risen so much over the past few months. We are spending for DD's summer activites but I am not willing to spend money on other things because I am kind of waiting to see how the ecomony is going, things don't seem to be going real well for alot of people. What is everyone else doing as far as spending money? Holding onto your extra? Spending everything on gas and food?

That's a really good question. I guess it all depends on how much disposable income each family has each month. I think people who live on credit cards probably aren't paying too much attention to how high everything has gotten.

I know we're really tightening down on our budget. We have a garden this year with just about every veggie you can think of -- even watermelon and canteloupe. We're going to can a lot of them for this winter. We froze strawberries a few weeks ago. So we won't be buying veggies from our local grocery store. A neighbor has two apple trees that he doesn't pick, so he's going to let us have the apples from his trees.

We are using cash only now to pay for groceries, gas, etc. The only thing we use our bank account for is to pay our monthly bills, i.e., electricity, mortgage, phones.... I've figured out about how much we need to keep in our checking account. Other than savings, everything else we keep in a cash box with a running ledger. I'm amazed at how I am much more aware of what we spend now. I can already see a difference this month. As for clothes, I shop only when I have coupons and usually wait till the end of the season for the marked-down clothes. Or I shop at Goodwill. I can find name-brand clothes there for $3.00 !!

DH and I treated ourselves and went out to Red Lobster Friday afternoon and ordered from the lunch menu. I had a gift card from one of my onsite rewards and so we ended up paying $4.00 for the entire meal.

If the companies depended on DH and I, sad to say a lot of people would be losing out because we're really watching what we spend. I have noticed, too, that everyone in our neighborhood is mowing their yards a lot less. Usually everyone keeps their yards nicely mowed. Now driving up the road I see yards that need to be mowed. But if they're like us, I'm sure they're waiting till they really 'need' to mow!! Plus we wait until we need to drive into town (except for DH going to work) and do all errands at one time.

I, too, have thought through this question as posed.

With that, I have wondered if we are not headed for yet another depression! (similar to the one in the 1920's).

Will we be better off as a whole versus our ancestors? Or do you think the majority of Americans won't know until it hits them in the face...and then will REALLY struggle?

I believe the latter question above (most won't know until it's way too late) because so many live on their credit cards.

We have no credit cards...paid them off and cut them up, but I do know a few people who spend more than they have for income.

We do use a "credit" card, well it's a debit card when we shop or get gasoline...takes it right out of our account. It is safer to do it that way than to carry cash--especially when you are at gas stations, etc. So many hurting for money, that even getting yours out to pay for your purchases can be dangerous.

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SPJRNTGADL!

Since my dh went on disability about 2 years ago, we go through a tank of gas (14 gal.) in about 3 weeks.
I drive to work which is 5 miles round trip. We drive more on weekends. When my dh worked he was in sales and went through a tank every 2 or 3 days. He would put 100, 000 miles on a car in about 4 years. We don't spend that much on food even with my dd living with us (she is 23). But we spend about $150 a month on medicine for me and my dh. My 3 month by mail went from $40 to $90 this year. Out of pocket costs went from $1,000 to $2,000 to $3,000 in the last couple of years.

I have thought about this as well. There needs to be a balance with income, cost of living and the extras. I am sure that businesses are feeling the affect of the higher gas prices. I know Walmart mentioned that.

Hubby and I finally got out of debt earlier this year and no longer use credit cards. We pay cash for everything and learn to do without if the money isnt there. We are still learning to be very cautious about where our money goes.

If a recession/depression does happen..people will start cutting out the extras.. like cable, internet, eating out and shopping at department stores. I personally think that will upset the balance.

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Paula
Some days are diamonds Some days are stone

http://paulajc.mycoupons.com/

WalMart has already experienced a downturn in sales. Gas prices are responsible for a lot of the increase in prices. I don't think that they'll be coming down anytime soon.

I have increased income by doing more mystery shops and combining them into a day so I can save on gas. Were slowly getting credit cards paid off and have put dh raise into the 401k.
I traded in my gas guzzling expedition for a honda oddesy
dh traded in his gas guzzling dakota for a civic
we only eat what is free or cheap. Luckily I have a nice stockpile so if we have no money one week for groceries it isn't a big deal. clothes are bought at yardsales and goodwill.. They always have been. I did buy waterpark passes for us, and were still going on vacation , so were not as tight as some, but we have saved all year for both.
we do have a garden.
I've been refunding and taking advantage of promotions left and right.. in fact most of my groceries came from rebates (Thank you miller company!! lol)
My dh drives a big rig so we get speedy reward points.. this will pay for gas for vacation, and has gotten us plenty of gas cards. thats a huge help!
When I do buy vegetables/fruits I go to Amish country where it is half the price of the grocery store.

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Too many people spend money they haven't earned to buy things they don't want, to impress people they don't like. - Will Rogers

I don't think too many restaurants around here are hurting. It's weird because no matter what the economy, there is always an hour wait on Fri and Sat nights at restaurants

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Proud to say I haven't shopped at a Wal-Mart since Sept 2003

We have been trying to cut back, and have not used credit cards since the beginning of the year. we have been trying to get them paid off, so not spending is part of that plan. The real estate that was keeping my area going has pretty much ended and people are getting laid off and things are getting tough.

DH is pretty secure in his job and I Ebay on the side for our gas and grocery money. We still have things we can cut back on, but haven't yet (cell phones can go, cleaning lady, that sort of thing). I think this winter is going to be tough, we haven't been able to hide any money away yet to get us through, but the busy season for both of us is the fall.

A lot of people I know are hurting, winter is the worst.

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"A true friend is someone who thinks that you are a good egg even though he knows that you are slightly cracked." ~ Bernard Meltzer

We don't eat out like we used to. We also don't go places. We used to go somewhere every weekend even if it was just for two day trips. Now we just stay home.

When it comes to "disposal income" for most people that means cutting back on groceries, trips, clothes, etc. There is no choice about utilities, insurance, mortgage (or rent) and most people need toilet paper, shampoo, etc.

It makes me sick. They print all these articles about how we are not getting gouged. Well maybe technically it's not exactly "gouging" but I want to know how these executives can justify getting millions of dollars in $$$ and stock options and other things which directly into cash? That is in my opinion obscene. It would be different if it were a caviar company or something but gas is not a choice to most people. Some of us live in areas with no mass transit and some of us must use our vehicles to work.

And I really don't see too much around here in the way of neighborhoods where people can walk to everything they need. We are told to cut our consumption but "they" don't really want us to because "they" make $$$ off it too.

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The political system is broke and it's a joke.

We have tried to cut our consumption of gas as much as possible, but we live in a small town and the only grocery store closed a couple of years ago, the pizza place lost it's roof in a storm the same year the grocery store closed, we are doing alot more things at home and close to home. We don't make any extra trips and I run all errands and grocery shop on the way to and from work (both DH and I work 20 miles from home). I have noticed the last few times I have been in Walmart I have looked in peoples cart when passing and people were not buying alot of other items except food items and pet foods, I saw a toaster in someones basket and a fan in another persons. Gas is coming down now, but we are going to stick with what we have been doing.

we have definitely been impacted by gas and cost of living in general. paying for college, gas, food etc and medical bills, things are tight and really no $ for extras. we don't go out to eat unless we have gift cards or a mystery shop. rarely go out other places either, can't afford it. one placed i worked.. cost $15 to $20 a day in gas to get there and back. i don't even drive a 'guzzler' or anything, just a regular car. gas is a pain for all of us with me, dh and the kids all having jobs, everyone has to drive to work at some point and only 1 of us has a job near public transportation.. gosh i miss those days about 5 years ago when gas was only about $1 a gallon.

I guess I'm the odd man out. I have not made any cutbacks and we are living life the way I always have. Oh, take that back, the recent change in postal rates that virtually eliminated Parcel Post class have seriously cut back on my sending of care packages to soldiers. But other than that, it is business as usual - likely because we have a fair amount of disposable income. We have always lived pretty frugally anyhow, and would not drive a gas-guzzler regardless of the price of gas.

cj/

trying to eat out less other than that we havent cut out much maybe
I drive a little less
I am home with the kids almost all the time alone dh works usually 15hrs a day so I do like to drive to relive stress sometimes I just like to go riding around the kids calm down & its fun & relaxing for me but I dont do that anymore. I just hate the fact that you only get 15 gallons of gas for $45 which is down from earlier this month I kinda quit going to parks & things so much to save on gas I am just staying in my own area now & making friends with the nieghbors instead of driving to do stuff. Dh has a different job & he saves us a ton now on gas the other job was 30 mins from our house the new job well new to me less than a year their is 1 mile from our house.

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mom of 3 greats girls