Do You Live in Fear of the Economy or Finances?

We don't live in fear, we are just realistic about the signs all around us right now. No financial decisions are made lightly...frivolous purchases are getting put on the back burner.

I think your husband is wise. Many people in our area, (friends in similar work) have been out of work for several months up to a year at a time due to the economy. If there is a housing slump, that means no new construction. If budgets are tight, that means corporate and residential renovation projects will be put on hold. Furthermore, the problem isn't just a local one, or unique to the US...it's a worldwide concern right now. Economists are saying this current economy is worse than the depression, and probably not going to get better anytime soon.

If this cabin is not a necessity, it's probably best not to buy it, right now. Especially if you will not be buying it outright. You won't enjoy it very much if he (heaven forbid) should be out of work for a significant amount of time but you're scrambling to make payments, or if you fully own it, needing to find money for property taxes, insurance and upkeep. Or worse, using up your cushion to pay for a house you only live in a few weeks out of the year. You'll be broke in no time with that scenario. Owning property is a burden if you have no one living in it, maintaining it's upkeep, or a way to pay taxes on it. If he did lose his job, you'd certainly still have to find money for it, even if you fully own it.

Looking at it as an investment that you could sell down the line isn't wise either. Properties everywhere are sitting empty and unsold because there aren't enough people to buy them. More people are renting or homeless as hiring in all sectors is slow. During tight times, keeping assets available and flexible in case of emergency is best.

This is a time to save and spend on what you need, no matter how financially sound you may be at the moment. If you have to work to maintain your standard of living, then you probably shouldn't take on unnecessary debt. It doesn't take much to go from sitting well, to struggling. You want to keep what you have and weather the storm ahead. Being over confident can be a mistake. Read the news if you need convincing:

http://www.bloomberg.com/apps/news?pid=newsarchive&si...

http://www.washingtonpost.com/wp-dyn/content/article/2007...

http://www.ft.com/cms/s/0/d5a60f68-4fc6-11e0-a37e-00144fe...

http://www.globalresearch.ca/index.php?context=va&aid...

http://www.housing.org.uk/Default.aspx?tabid=212&mid=...

http://www.popsci.com/scitech/article/2007-06/america-hea...

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Not in huge fear but absolutely always thinking about the downcase scenario. We have no mortgage, college paid for, retirement funded etc but still are very conservative. My parents were this way and now they're comfortably retired vs many of their friends who didn't worry and now have to in their old age... I think Americans don't worry enough!

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In a soft economy, construction is one of the hardest hit segments. Your husband is a smart man, wanting to cancel. His boss gave him an important heads up, so don't ignore that.

D.

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Nope- we live very conseratively and as a result can take a "hit" if it comes. Of course we have passed up "fun" activities "just in case" and I wouldn't change that for anything! I'm not saying that we deprive ourselves (we went to Elmo Live this weekend to the tune of $150 for the three of us), but we carefully plan our "fun" and save for it.

We don't buy things (including vehicles) if we can't pay for it in cash. We don't take trips that exceed our budget. We don't buy extravagant gifts that don't also serve a purpose... we save meticulously for retirement, we save for college... we save for "oh s*$%" times, we save so that if my husband is laid-off in the future we don't have to scramble to pay bills... we save so that when our second child comes I can take a significant period of time off.

We live our life by the idea that life is, in fact, about choices. It's about making choices that factor in short-term and long-term impacts... both good and bad and then living with the consequences of those choices. So far, we're in good shape. Should something catastrophic happen tomorrow- we'd be okay for a year and that fact significantly eases any "financial fear".

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Short answer.....until we get out from under our debt cloud and my 3 kids are all in school so that I can go back to school without paying 2 grand a month in daycare.....YES! (and my husband hates it! he comes from the camp of 'you can't spend your money when your dead (Thank you-MIL!)).

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We used to live in much more fear because of Money than we do now. We completed the Dave Ramsey course and in the next couple of months, we will be debt free (except our house). We have a nice 401k, a decent start on college savings and an emergency fund. Once we have the vehicle loan paid off, our next step is 4-6 months of our salary in the emergency fund. I would reccommend that you either buy or borrow from the library one of Dave Ramsey's books, get yourself in step with his plan and then, think about buying the other items. It is WONDERFUL that you were planning to pay cash for these items, by the way!! Dave would be proud! However, unless you are debt free (except a mortage) and have all your other bases covered (emergency fund, retirement, college, savings for a car, washer dryer, etc), I would say it would be best to use this money as part of your emergency fund. The emergency fund doesn't get touched unless there is an emergency... Good luck!!

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We would never make a big jff purchase right now. Just too risky. I'd rather live comfortably with a big cushion in my savings account. Someday, if real change happens in Washington, our country will get back on track and we will see significant improvements in our economy. Until then, we wait and save as much as possible.

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We pass up opportunities constantly to be on the safe side. I admit I hate it - my hubby is the super frugal saver , I am too, but not to his extent. We have had one vacation in 6 years, and I never took one as a child. So, I am due a nice one! But, we always pass it up because there is always something else the money could be spent on - some bill to be paid off or more money put toward the mortgage. My hubby says I will thank him 15 years from now. I always say if I am alive to enjoy it - you need to live in the moment a little more! Oh well, hopefully he is right. Also, hubby would be this way regardless of the state of the economy. I have not seen a change in his spending one way or the other.

We have no credit card debt, almost have cars paid off and have student loans (quite a bit) and a mortgage (very minimal payment because we live in a house that is too small! lol). We live well within our means and could "afford" a vacation - we just don't take one.

We were supposed to go to a baseball game in a month for my upcoming birthday. Hubby is selling the tickets because he can make more money that way and says maybe we will go some other time when the weather is nicer. I know what that means =(. But in the end, I am so happy my hubby is the way he is. It means our family is taken care of and safe. So much better than being married to the alternative!

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The only thing i know for certain, is that the standard of living is going down for all us us in this country. Yes, we have passed up buying a home. I pass up clothes and furniture and have decided to be happy with what i have. I constantly feel like the other shoe is about to drop. I'm not going to freak about it, but neither will be go into debt, or live on the edge spending everything we make so that any disruption in employment means disaster.

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First off I am going to explain where I am coming from. My religion is Wicca, we believe that everything has energy. Fear is a negative energy. Money is energy that can be positive or negative. When we live in fear of something we actually bring it closer to us. So when we spend if we do that with fear we are putting a negative energy into our money. Each dollar bill passes through many hands if we have put fear into that dollar bill then every hand that touches it is touched by that negative energy. If on the other hand we put joy into every dollar bill we spend we are passing joy or positive energy to every person that touches that money. Spending carefully but with a positive thought is essential.
I totally understand where your hubby is coming from. The construction industry has been hit really hard, in Wisconsin it's worse. But look at it a diferent way: yes the purchase could put you into a financial hole if he loses his job--but the fun you could have at your vacation home may be worth chancing it. By purchasing the property you are increasing your net worth, if things go bad you may be able to refinance both homes. You could plan it to be a retirement home--or if things get really bad you could lose the larger home but would have a place to move into. In purchasing the vacation home you would have a place to take vacations and have an investment, if you are taking vacations and staying in hotels, driving a lot, eating in restaurants ect that could be more costly than paying the mortgage on a vacation home.
This economy is one time when we have to believe in a higher power and that there is a master plan. We don't always get to know what that master plan is, we just have to have faith that we really will be okay. This is a lesson and a test and no body got to study for it, we learn as we go.

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As long as we have 'x' amount of dollars in savings as a fall back, I think splurging one in a blue moon is 100% a MUST. If you don't spoil yourself a little, you begin to resent everything. We literally live paycheck to paycheck; my fiance gets an weekly allowance, everything else goes towards bills/food/rent. Once in a while, when things get overwhelming, we toss caution to the wind. Last year I splurged on a new couch (our old ones 'worked' I guess, you could sit on them, but they were NASTY)... It was an impulse buy that I absolutely don't regret, I'm soooo happy with my new couch! Every so often we say 'screw it' and go out to eat somewhere well above what we can afford. It seems like such a bad idea because we're so broke, but it works miracles for our sanity. If we starved ourselves of such niceties once in a while, we really do get in the worst moods ever and turn so negative that you can sense it a mile away. As long as you've got money to fall back on, I would definately get the cabin or camper. Think of it this way, you're compromising with yourselves... instead of going on a cruise or taking a week at a fancy hotel, you're getting a CAMPER. To me, it seems like you're making the very best of a not-so-great situation. Mental health is as important as finances... I would definately splurge if I were you. Otherwise you'll sit in your house all summer pissed off ;)

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I wouldn't say we live in "fear". Our house is paid off & we carry NO debt, have a college fund in place as well as retirement funds. I think REALISTIC is a better word for my view.

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we don't live in fear, we live and spend cautiously. we were due buying our 3rd (2nd retirement home) this year, but decided against it. we will wait to see what happens with economy. we have savings to carry us out for a year if the job is lost. we have college savings, one house paid off, one with a mortgage (we don't plan on ever paying this one off as we don't plan on keeping it). our cars are paid off. we take vacations. look for deals and don't go nuts. we do mini-vacations throughout the year because we don't want to save save save and then realize something happens and we didn't enjoy life. we also want our kids to have a good childhood with good memories. if we were to buy this 3rd home, we would be digging into our savings. not willing to do that until the economy turns around even if that means home prices go up. so i agree with your husband. if the job is not secure than better safe than sorry.

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I would be bummed too.Your paying cash & have money saved there wouldn't be any debt just what you would make incase of an accident complete loss of employment.

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Your husband's job said business was slow, not that he would lose his job. I understand his panic, but if you have a year of savings, you are debt free minus mortgage and ok on 401K, why not. You seem to be in a better position than most people. It is a man thing for them to worry about finances and providing for their family. Maybe you can convince him it will be ok and to stop "eavesdropping", lol..

PS: Maybe you can RENT one instead of purchasing one. That way you are not putting yourself in added debt.

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I completely understand where you are coming from. My husband works in construction as well. He used to get so stressed out about potential lay offs. I started a business from home where we now have a weekly paycheck coming in whether we work or not so that stress is gone but I completely get where you are coming from. Hang in there. It will pick up again.

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If I saturated myself with all the negativity out there regarding the economy, I could easily go postal.

I don't live in fear. I live in FAITH. I do the things I know to do to bring riches and wealth to my family. Perhaps if your husband saw this cabin as an opportunity to gain rental income he would have a different perspective. He's in construction so even it his boss is all doom and gloom that doesn't necessarily equal the same outcome for someone with a different mindset.

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