My Struggle With Debt

5 tips for saving money during a recession

Chris — Wed, 11 Feb 2009 14:21:53 +0000

1. Track your money. I use Mint.com for managing my finances. Mint lets you track your spending habits, create spending categories and budgets. If you use Mint, all of your previous transactions can be imported into their software for easy tracking.

2. Spend less. Look at your budget and see what you can cut back. Is it the $5 latte? The $6 lunch at work? $20 at the movies? Look for simple every day ways to save. Instead of buying lunch at work, bring one with you. Instead of going out to the movies stop at the video store and spend time with friends and family watching it at home.

3. Reduce your grocery bill. Start shopping at discount stores like Walmart or Costco. Many times the unit price on food is cheaper when you buy in bulk rather then the traditional package. Start watching the newspaper for coupons and deals. Buy generic medicine rather then the name brand. Most generics have the same active ingredients as the name brand.

4. Reduce your energy bill. Try turning the thermostat up 3-5 degrees this summer. Also make sure your house has proper attic insulation and that your windows/doors are sealed against drafts. Run your major appliances at night when energy is cheaper to deliver. You might also try using oscillating fans to cool your home rather then turning the AC on.

5. Pay off your debts. Dont just make the minimum payment on your credit card bill. The economy is not going to get better for awhile. Now is the time to pay off your credit cards and auto loans. Focus on saving money each month with a goal to have at least 6 months of your salary in savings.

Job losses – WWII to now

Chris — Tue, 10 Feb 2009 16:35:09 +0000

William Polley has a great graph showing job loss data for the last 50 years. Some of you might have seen Nancy Pelosis scare chart showing that the current job loss is pretty bad. But look what happens when you compare it with what we’ve seen before:

Recession, depression, what’s the difference?

Chris — Wed, 28 Jan 2009 15:37:52 +0000

Depending on who you listen to we are either in a recession or a depression. Neither sound good to me but I really didn’t know what the difference was until now

The text book definition of a recession is a decline in the Gross Domestic Product (GDP) for two or more consecutive quarters.

The National Bureau of Economic Research defines a recession as a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

A depression is a period of economic slowdown that lasts longer then a recession and has a larger decline of business productivity.

How can we tell the difference between a recession and a depression?

About.com uses this as a benchmark:

A good rule of thumb for determining the difference between a recession and a depression is to look at the changes in GNP. A depression is any economic downturn where real GDP declines by more than 10 percent. A recession is an economic downturn that is less severe.

Using this guide the last depression in the United States was from May 1937 to June 1938, where real GDP declined by 18.2 percent.

Our GDP for 2007 – 2008 was bad but not a depression

In 2007 the GDP was 2%

In 2008 the GDP was .9%

Our economy has definitely slowed down but we arent close the the numbers we have seen in the past

Excel budgeting spreadsheets

Chris — Mon, 27 Oct 2008 21:06:12 +0000

Here are several Excel spreadsheets that you can use to plan your budget and investments

My Struggle With Debt

5 tips for saving money during a recession

Job losses – WWII to now

Recession, depression, what’s the difference?

Excel budgeting spreadsheets

Budgeting:

Debt reduction:

Investing:

Financial statements: