With the economy experiencing its own problems, most people around the country have been forced to rethink their expenditures and cut back on items which are only purchased for their luxury appeal. There have been many new terms with which to refer to this more conscious effort to reserve spending habits (recessionista, poorgeoisie), but for many typical middle-class family, this is a normal effort that parents put forth in managing their funds. These families understand that they cannot shop at high-end stores, but must instead provide for their children and make sure they are fed and clothed.

While this new influx of thrifty customers in many stores is a welcome sign in corporate America, it is a scene which should have been visible years ago when the credit crisis first started. The easy availability for nearly anyone to get a credit card has led to the financial crisis which we are now in. People began to solely rely on credit cards to get them to purchase large amounts which they normally couldn’t afford, even taking out exorbitant loans to buy an extravagant house or car. Now that more and more people are getting denied for loans or credit cards, there has been a heightened interest in ways in which to save money. Coupons have gotten much more use over the past months than they have ever before had, leading to more satisfied customers within grocery stores. Moms are looking for more ways to do cost-efficient activities and save money on weekly groceries. The recession has affected us all, and the repercussions have not been as bad as were forecast but simply have resulted in a restructuring of our needs and wants.

Learning how to shop thriftily is an art form which needs to be learned from seasoned veterans. Simply cutting back on extraneous expenses is the first step you can take which involves giving up a lifestyle which you may have been accustomed to but which is unneeded in the long run. Therefore, determining what you can cut out and what you need to survive is a vital part in becoming a thrifty consumer. Sales and coupons become part of your existence as well and you thereafter discover that there are many alternate routes to take in becoming a conscious customer in any setting. Many moms around the nation are used to this type of thrifty spending for those of you who are new to this “game” there is much to get used to, but in the end discovering how much you save is a reward in itself.

This post was contributed by Sarah Russel, who writes about the best online college degree. She welcomes your feedback at SarahRussel1234 at gmail.com.

image via sxc.hu

Post from: Thrifty Mommy

You see, almost four years ago we bought a house.  We lived in it, fixed it up, and cared for it.  We wanted to make it a special place for our family.  Now here we are selling it and taking a loss.  A big loss.  We actually have to borrow money to sell it.  You may be wondering why I would be borrowing money to sell a house.  Well, it’s been on the market for eight months.  As you can imagine, the upkeep on a home can be very expensive and then add to it rent and utilities in another location, and it leaves us with little money left each month.

For eight months, we have been paying a mortgage, insurance, taxes, and utilities on a house we’re not occupying.  All of this while the housing market is down.  We’ve had people interested in the house, but none that could come up with the money.  The city where the house is located has seen a lot of lay offs.

You may be wondering why I wouldn’t just hang on to the house and wait until the market picks back up.  There are several reasons for this. 

1)  This is the first offer we have received on the house.
2) We don’t know when the market will pick back up again.
3) The financial strain needs to stop.
4) The market where the house is located is far worse than it is here.
5) Houses where we currently live cost a lot more.
6) Interest rates are the lowest they have been in many years.
7) Reasons #5 and #6 equal the reason we can afford to buy a house now.

Let me make this clear:  I hate debt.  This is not the road I want to take, but right now it seems like the only option.  And with rates being the lowest they’ve been in years, we can actually afford to purchase a house here.  The money we’ll save in interest far outweighs the loss on the other home.

I’ve had several people suggest a shortsale on the house, but everything I’ve read about shortsales messes with your credit.  (Shortsales are a better alternative to foreclosure though.) 

Sorry, this is no money saving lesson for today.  This is just a lesson learned and some thrifty struggles, weighing options, and finding the best way to get through it.  I’m hoping things are financially well your way.

images (c) Karen Weideman

Post from: Thrifty Mommy

These last few weeks, my family has been hit as well.  We are so thankful to have our jobs.  My job is tenuous but so far, so good.  But my family hasn’t been so fortunate as of late.

• My dad was laid off in February
• My step-dad was cut to 20 hours a week from full time and lost his insurance
• My sister is waiting for her furlough
• My sister-in-law lost her job a few months ago

Keep up the hard work with finding a job.  We are praying for you.

Post from: Thrifty Mommy

Well, I’m here to remind you that you’re going to fix the economy because your personal economy is up to you. It’s not Washington’s job to fix what’s going on with you. If you are waiting on Washington to change something, you’ve got a long wait!

You’re going to give yourself money as a result of your hard work and persistence. Waiting for money to be taken from others and given to you is a spirit of envy, and it’s wrong.

I’m not here to tell you who to vote for. But I am here to tell you that the government doesn’t have the capacity to fix your problems. Washington is full of bozos, and I am doing my part to send a lot of them home!

 . . . . .

As bad as USA Today meant a recent article to be about what we think of the suffering economy and upcoming election, I think it’s rather encouraging that no one thinks that President Bush or Barack Obama or John McCain can fix the economy!

Read the rest of the article here.

Thanks Dave.  As usual, that’s great advice!

Post from: Thrifty Mommy