Comments on: 1,072 people respond: “Are you spending less because of a possible recession?”

By: Smith

Smith — Thu, 07 Feb 2008 12:13:17 +0000

A good budget, living below your means, and planning make it where you don’t have to change much of anything when the markets turn. Having adequate savings (in cash), and multiple income streams protects you from living a fear based life.

By: Darrin

Darrin — Thu, 07 Feb 2008 03:12:26 +0000

I’ve adjusted my spending for fear of a recession, but have put the money I’ve saved directly towards paying off debt in case things get really bad.

By: Jessica

Jessica — Tue, 05 Feb 2008 20:05:11 +0000

I would love to see a survey about cash sweep options people are either forced or have chosen to accept with their brokerage accounts…looking today I can find information on several brokerage firms and some sweeps go to a bank…others money markets (if you meet the minimums)…some just earn interest while idle…but the rates range from 0.10 to nearly 3 or 4%…all automated…which sounds so easy…but I think are popular with investors (if not forced) during this “down time”. Thank You

By: CFA Level 1

CFA Level 1 — Tue, 05 Feb 2008 15:23:12 +0000

Interesting results. Thanks fro putting these up.

By: Laura

Laura — Mon, 04 Feb 2008 21:49:36 +0000

Thanks for posting the results up. I’m in the same boat with Lucy and Jean. We’re cut down on some expenses to save for a down payment on a home.

By: The Penny Saved

The Penny Saved — Mon, 04 Feb 2008 20:49:01 +0000

Thats a good point LivingBelowMyMeans but I think there is something deeper than that going on. People don’t fundamentally understand WHAT a recession is. For most people it is something that looms ahead and is scary. How many people really understand what a recession means? 10%? 20%?

By: LivingBelowMyMeans

LivingBelowMyMeans — Mon, 04 Feb 2008 13:34:03 +0000

My question is, why do people have to adjust their spending in the first place? If people were wiseenough to control their spending so that they weren’t living beyond their means, then “recession” wouldn’t be such a scarey word.

By: What I've Been Reading (2.3.08) | Schaefer's Blog

What I've Been Reading (2.3.08) | Schaefer's Blog — Mon, 04 Feb 2008 04:45:36 +0000

[...] Ramit Sethi ran a very interesting survey looking at: “Are you spending less because of a possible [...]

By: GenKreton

GenKreton — Sun, 03 Feb 2008 21:23:11 +0000

Some people seem to be assuming younger people are not as worried about a recession as the older crowd because they have not experienced one. However, I, as a young person, must contend that many of us don’t fear a recession because our expenses are quite minimal in comparison.

By: toment

toment — Sun, 03 Feb 2008 16:44:41 +0000

My comments are in response to Jean’s question about those respondents who answered “no” to the basic question. I’m one of those respondents and I don’t consider myself financially foolish—actually quite the opposite. I answered no because I already maintain a significant cash cushion in a high yielding money market fund to cover economic downturns, unexpected expenses, temporary job loss, etc. I also fully fund my 401k at work, fully fund an IRA, contribute to a variable annuity, and invest in taxable funds EVERY month. I’ve been doing all this for over 20 years. I also pay my credit card bill in full each month and track ALL expenditures by category so I know what I have and where my money goes. To me, people who do not do all of these things each month are the foolish ones.