For the first time in months, the grocery store was crowded when I went shopping. This is a change. Even on Saturdays stores hadn’t been crowded. This time, a Wednesday night, the store was crowded and not just because there weren’t enough cashiers. There were several cashiers, and even the self serve lanes were open. To me, this is a greater indicator that the economy is picking up again. People are not only buying food, but a significant amount that will make the lines long.
The 20 plus people deep line at the library a few days earlier really showed me that things weren’t really improving economically. When consumers are comfortable spending they will buy their own books, dvds and cds. When things aren’t they go to the library and look for other forms of free entertainment.
Even though the grocery store was crowded, it will still take a long while for consumers to feel comfortable buying extras. Food isn’t an extra but for some reason grocery stores also took a hit in the economy. Lowering prices did seem to help.
The lines at the libraries will continue to be long until more finding is added for additional clerks. When the libraries were slow two clerks could handle the job with ease, now that people are able to get the latest releases for just the cost of waiting the stacks have become the hip place to be.
Retailers are pairing down some things in addition to prices to try to salvage their businesses. Maybe people didn’t need 12 varieties of everything, if they did, they would go to a specialty store. Though since the consumer is now king and aren’t buying what they used to, retailers are being forced to pay close attention to what sells and what doesn’t. Coupons, sales, and fewer choices are becoming the norm as retailers are trying to maintain a foothold in this new
The changes are likely to last for years. Even when the economy improves, it will take years before the debts that piled up during the decade-long shopping spree are paid off. Americans are also getting used to their newly adopted frugal habits of saving more and spending less.
“I don’t think we are going to go back to business as usual,” said Steve Sadove, chairman and CEO of Saks Inc., operator of Saks Fifth Avenue.
Getting and staying in the habit of saving more and spending less is a sustainable way to live.
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I received this in my personal email account today and thought – this sounds great. If we pay attention to our label and make minor changes in our purchasing habits then we will make a greater economic impact than just buying things that are cheaper. Here is the email in its entirety.
“One light bulb at a time… this is a good read…Check your labels
Check this out. I can verify this because I was in Lowe’s the other day for some reason and just for the heck of it I was looking at the hose attachments. They were all made in China . The next day I was in Ace Hardware and just for the heck of it I checked the hose attachments there. They were made in USA . Start looking.
In our current economic situation, every little thing we buy or do affects someone else – even their job. So, after reading this email, I think this lady is on the right track. Let’s get behind her!
My grandson likes Hershey’s candy. I noticed, though, that it is marked made in Mexico now. I do not buy it any more. My favorite toothpaste Colgate is made in Mexico now. I have switched to Crest. You have to read the labels on everything.
This past weekend I was at Kroger. I needed 60W light bulbs and Bounce dryer sheets. I was in the light bulb aisle, and right next to the GE brand I normally buy was an off brand labeled, “Everyday Value.” I picked up both types of bulbs and compared the stats – they were the same except for the price. The GE bulbs were more money than the Everyday Value brand but the thing that surprised me the most was the fact that GE was made in MEXICO and the Everyday Value brand was made in – get ready for this – the USA in a company in Cleveland , Ohio .
So throw out the myth that you cannot find products you use every day that are made right here.
So on to another aisle – Bounce Dryer Sheets….yep, you guessed it, Bounce cost more money and is made in Canada. The Everyday Value brand was less money and MADE IN THE USA! I did laundry yesterday and the dryer sheets performed just like the Bounce Free I have been using for years and at almost half the price!
My challenge to you is to start reading the labels when you shop for everyday things and see what you can find that is made in the USA – the job you save may be your own or your neighbors!
If you accept the challenge, pass this on to others in your address book so we can all start buying American, one light bulb at a time! Stop buying from overseas companies!
(We should have awakened a decade ago……)
Let’s get with the program…. help our fellow Americans keep their jobs and create more jobs here in the U.S.A.”
Not every purchase has to be from American companies but if you are really trying to make an effort you can buy more things that are made in America. Even buying 10 or 25% more items from U.S. companies would make a difference. Other countries buy their own goods, whey can’t we?
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What if you just can’t cut your spending any more than you already have? What can you do? You’ve clipped coupons, make more meals at home and also cut back on discretionary spending.
Stop! If you are making ends meet and have no difficulty paying bills, then stop trying to save more. Save as much as you can without feeling uncomfortable. At a certain point if you save too much it can be addictive like a crash diet but then like a favorite food tempting a dieter, an item may call a save a person’s name and cause the person’s budget to come crashing down around them.
Remember when you were a child and made a list of what you wanted for Christmas? Make a list of things you want. This does not mean that you will buy these things but by making a list much like a shopping list, even if they are things you cannot afford right now will make you consider whether or not the items on your list are necessary. In fact, if you just go shopping online and list items you like, you haven’t spent anything. When you have money and look at the list later, you might look at the list and think – “why did I want xyz?”
Just as you make a list when you are hungry, you should also make a list when you are planning to go shopping for any other type of item. If you are going to buy jeans have in your mind that you are going to buy jeans, or a black skirt or a bag, stick to that list. Do no go to other part of a store looking for items you don’t need, if you are easily tempted. Some people can go into a store and buy the item they want without feeling pressured to spend extra money.
Economists who have spent most of their time chronicling other recessions say it’s inevitable that pent-up demand will lead to some kind of breakout of spending. The official indicators aren’t there yet, but the stock market is stronger, and the housing market appears to be near bottom, which bolsters confidence.
Breaking out of the saving mold and spending will happen, especially for those who are unaccustomed to saving money, but the conditions must be right. What the right conditions are, have yet to be determined. Saving isn’t a negative part of a budget, it is a necessity like a utility to have a well-balanced spending plan.
Really, truly. Manufacturers and other businesses have been decreasing the size of grocery items while keeping the prices steady. Remember when ice cream was in a half gallon container? There are still a few manufacturers that sell half gallons, but most are smaller containers. I saw a half gallon container of ice cream at Trader Joe’s and was surprised at how much larger the container seemed compared to what is being sold now. Instead of the 1.75 or 1.5 quart containers of ice cream, this was a full half gallon. When the package size decreases and the price stays the same, this is increasing the price per ounce. In the case of ice cream, this is over a ten percent price increase.
Even when an item is on sale, this doesn’t mean that the price is a good deal. Remember when notebook paper came in 200 sheet packages? The packages have decreased to 150 sheets. A dozen pencils, not anymore, more like 10 in a package.
To thwart this, wait until items are on sale or check the price or a larger or smaller sized package. Figure out the cost per piece or ounce. Even when items are on sale, the sale price may not be as great a deal as the regular price of a smaller or larger sized item. Think this isn’t true… next time you go to a fast food restaurant, check the price of a small medium and large soda. The price difference is generally negligible but the largest one is generally the best deal.
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Financial experts are making changes in their advice about saving, spending and dealing with debt.
Suze Orman is urging people to pay the minimum on their credit cards and save some cash. This is an about face to the advice she was giving before. Now Suze is telling people as part of her recession information to just pay the minimum.
Say what? Contrary to every bit of advice that anyone has about credit cards, Ms. Orman is recommending to people who are in financial straits to pay just the minimum payment, and do not use their credit cards any longer. This way there is still a line of credit if necessary and the money that is in savings can be used to pay bills, if the person is unemployed or underemployed.
Paying only the minimum does not get you out of debt any faster but does allow you to keep your head above water.
Making only the minimum payment seems silly and keeps you in debt, but if you are using the money to pay off other necessities, prioritizing your debt, then there is a chance to keep your credit card accounts. Paying them off, might mean that your credit limits will be reduced.
Suze is the only financial advisor who is giving this advice openly. Many will say pay what is necessary such as mortgage or rent and utilities, etc. Paying the minimum amount keeps people in debt and the credit card companies in business.