Share your story: Coping with uncertain times

How are you faring these days? Have you been roiled by recent economic events? Are you changing the way you live, spend, save, or invest? We'd like to hear your story.

Your outlook on the current financial upheaval likely depends on your personal circumstances. If you have a stable job and a fixed-rate mortgage, then you're probably sleeping better at night than folks who are close to retirement or facing steep college tuition bills. Maybe you can squeeze a few more years out of your car and put off other major expenses as well. But maybe you can't.

Consumer Reports was born during hard times. Since the Great Depression, we’ve been helping readers make wise choices about their money, and we'd like to continue that tradition through this downturn as well. Our Money & Shopping blog offers advice on everything from personal investing to credit and loans to how to negotiate the changing real estate market. And we've just introduced a new column by our resident penny-pincher Tightwad Tod to help you get the most for your money.

But we'd like to hear from you about the things you are doing in your daily life to make it through that stack of bills and shore up your future finances. Please share your story in the comment section below.

Comments

[Josh]

After being laid off twice - once in 2002, once in 2004 - I've become very disillusioned about "job security." I'm honest, work hard, and do my best for my employer, but in the back of my mind I'm always aware that any job can vanish overnight.

During the enormous housing run-up over the past few years, I realized that the exuberance and good times simply couldn't last. Therefore, I decided as long ago as 2005 that I needed to "make hay while the sun shines." I would use the good times to prepare for the bad times. My guide? Dave Ramsey's book "Financial Peace."

To start, we sat down and worked out a budget that we could stick with. I accumulated an emergency fund worth at least 9 months' salary, since I am the sole breadwinner in the household. I made extra principal payments on our two cars until they were paid off. We refuse to carry credit card debt. Our only debt is our mortgage.

I realize that few people could (or would) choose to do what I did next: I increased the frequency of our mortgage payments until we were exactly one year ahead. In other words, my next mortgage payment is due in November, 2009. This was difficult and required some belt tightening for a while, but I sleep so much better knowing that I don't have to make another payment until late next year.

Mathematically, paying forward on my mortgage makes no sense at all. That extra money would have been much better served paying extra towards the principal. But the peace of mind this has brought is indescribable. If things go really sour, at least we have a guaranteed roof over our heads for the next 12 months.

In the meantime, we still try to stick to our budget, continue to put money in savings, and have fun. We do worry a bit about the economy, but we've done the best we can to insulate ourselves from the worst of it.

[Debi]

I'm really focusing on organizing and decluttering. I reorganized my pantry so that I can better see what I have on hand and what I need to stock up on. I plan to go through some other areas through the house so that I can make sure that everything has a place and I don't end up buying stuff I don't need because I can't find what I already have.

[Julie]

I retired a year ago and determined to live as frugally as possible so my savings would last. I clip coupons and find shopping mid-week for food there are more bargains. Clothing I buy at discount stores and I get my hair cut at a discount chain for $15 where they do a better job than my old $45 hairdresser. For big things I shop around looking for the best deal on the Internet, etc and bargain with vendors. I have stopped buying books and go to my local library. Even with Medicare Part D, I was finding my RX were costing a lot so, with my doctors approval, have stopped taking or have reduced some meds. In an effort to "go green" I have replaced most of my light bulbs with the energy efficient ones, I turn lights off except in the room I am in and set my thermostat down saving on my electric bills. It's amazing a lot of little changes add up to $300-400 savings a month and I have money left to take classes, eat out with friends and put away some of the money I save each month so that I can take a big trip next year.

[childfreelife]

I do lots of things to save money. My husband was laid off in April, and hasn't been able to find work. He has gone back to school at a job skills center.

I take the bus to work and I use a monthly bus pass. I reduced our car insurance to "for pleasure only", since neither of us drive our cars to school or work. For a long time we were only insuring one of the cars and letting the other one sit in the driveway (the winter rain has changed our tune on walking and busing as often). Whenever possible we carpool to events with friends who are already going, and just pitch in a little for gas--instead of driving.

I color my own hair and I only get it cut a few times a year. (I have very long hair, so it is pretty easy to go a long time between cuts). My husband has clippers and does his own buzz cut.

We took a boarder in. I had to move all my hobby stuff into the kitchen nook and garage.

I have started cooking in the crock pot and eating less meat meals per week and eating more bean meals.

I shop at a grocery outlet store and buy all my food at much cheaper costs.

I have gone through my clothes multiple times and I wear what I already have, and I only buy stuff I really need.

I am reading through books I already have instead of buying more and using art supplies I already have instead of buying more. (most things I got as gifts or from throwaways at my college anyways).

The hardest thing is after the game nights my husband and I play at, most people go to a cheap restaurant for "afters". My husband and I go, but just order coffee. When we get home we make ourselves some bacon and eggs, rather than buying food at the restaurant.

[Rob]

Like Josh, we also followed Dave Ramsey's Total Money Makeover. Dave offers courses, but actually gives away the true secrets with his 7 Baby Step Plan.

I am fortunate enough to not rely on a single source of income. I worked for many years in the nuclear power industry. I now operate my own business, doing consulting work, license examination development, and instructional services for several nuclear utilities in the US and Canada.

With no debt, including no mortgage, we are in the best financial condition of our lives. Our biggest financial concern this year was FDIC limits on deposits.

Americans in almost any industry can condition themselves for hard times by being debt free. Rely on themselves for diverse streams of income. Sometimes you can have multiple paychecks coming at the same time. Be aggressive in finding second jobs for weekends and nights.

With the Washington buffoons spending trillions, you can ill afford to be careless or indifferent.

[DaveB]

Hope this gives someone a lift. While life is not "fair" and resolution does not usually come overnight, staying active will benefit you over the long term....

My advice, work anywhere try anything but don't ever give up on yourself. Gainful employment, and or perhaps new training means much to your self image and simultaneously gives you exposure to other opportunities.

My grief started in 1991 after 17 years while working for a Mainframe computer manufacturer. Got a good settlement (six months severance and a pat on the back) to start my new career in the outside world.

Short analysis- did not take unemployment... spouse was working... our oldest child was starting college two years hence... our debt was limited to a home mortgage and the cost of raising three healthy children.

Right away we checked for any employment. Worked without pay for start-up company six months, started getting paid but little. Next began taking any part-time or full time work available. Worked for myself, my brother, sold real estate, stocked store shelves at 4:00AM, worked a third shift job and randomly kept some pretty weird hours. Eventually, after holding perhaps 8 jobs over a five year stint (simultaneously embellishing the resume with college programming courses) I was were able to score high enough on an open competitive exam to place myself in a better paying employment situation.

Yes, we endured the frustration of five years underemployment but we stayed busy. We drove old cars, did lots of do-it-yourself repairs, kept a tight budget, and vacationed on the cheap. On the other hand we kept our self-esteem, limited the credit cards to necessity only, paid the tuition and showed our three teenagers that hard workers are "luckier" than those who hope for the best.

If luck favors the well prepared, then staying busy, learning new skills, and staying focused on the long term are the keys to helping luck favor you.

[Debra]

I have a garden that I have made more extensive this year. It will take care of a great deal of our veggie needs for the summer and into the fall. I'll probably try some indoor gardening over the winter to help with more veggie needs. We are vegetarians so this makes a big difference!

I also started coloring my own hair and getting it cut by a relative. I do have a question for other folks who color their own hair. Is there a brand out there that does not fade quickly and that does not start bright/dark for a week and then turn to its regular color? I have experienced both of these problems and am looking for a decent hair color. I want permanent rather than the sort that washes out.

Thanks!
Debra