Mar 11 2009

Living like we’re in a permanent recession


The question, “If the recession lasts for years, how will you cope?” is being discussed on and I thought I’d chime in.

I plan to live like we’re always in a recession.

I will cope by getting out and staying out of debt permanently. I want to have a solid emergency fund, as well as other savings. I want to always live below my means. I want to make frugal decisions.

The economy as a whole doesn’t really change those goals of mine. When the economy is way down like it is now, it only reinforces my thoughts.

Once things start to improve (and they will), I don’t want to be tempted to “spend spend spend!” or reduce my savings contributions.

I want to remember the challenges and struggles people face in a down economy. That way, when the next recession hits, we’ll be more equipped to ride it out.

Posted under Uncategorized | 12 Comments »

12 Responses to “Living like we’re in a permanent recession”

  1. I expect that this “recession” (it’s really a depression) will last for years. I do not plan to spend extra. Instead, I plan to save more.


    Nate @ Debt-free Scholar’s last blog post..12 Ways to Waste Money in College

  2. I feel the same way. If only we, collectively, as Americans, had all lived with less in times of plenty, we wouldn’t be here. Let’s hope the shift to frugality sticks.

  3. Good idea. We are living on a tight budget, but we haven’t personally been that affected by the recession. The worst thing has been that my husband was furloughed for five days over six months–no big deal, when you consider people are losing their jobs. Even when the economy improves, our personal finances still need work. We’re paying for a homebirth out of pocket, so we’ve been saving for that, and to see if it’s possible for me to be a stay-at-home mom one day. We’d like to pay off our still rather large car loan a year or two early, so we are living frugally indefinitely. And once you get used to saving, it’s kind of painful to waste money even if you have it to waste!

  4. I wholeheartedly agree! We want to continue on the path we are on regardless of what is happening in the rest of the world. There will always be ups and downs and war and peace- but my finances don’t have to be beholden to the current times generally speaking.

    Rachel’s last blog post..Debt Levels: March 08

  5. Living as you suggest is simply common sense. Too bad it’s so uncommon….

  6. Kacie, those are such wonderful goals that more people should live by. I feel the same way! The economy has no bearing on my financial goals. I will always strive to be debt free and frugal!

    Alyssa @ Keeping the Kingdom First’s last blog post..Giveaway: Yo-Plus Gift Pack

  7. Really, it’s not that we need to have the mindset that we’re “living in a recession”- we just need to keep living responsibly like we were before the economy was labeled as “downturned” or “recession” or “depression” or whatever.

    For those of us who choose to live debt-free and secure (with an emergency fund and other savings), the wider economy has less of an effect on our personal finances, because we’re not living paycheck-to-paycheck. Saying we’re “living like we’re broke” or “in a recession” implies we’re living this way out of fear, when we’re actually living responsibly to be FREE from fear and worry.

  8. Joanna, you make an excellent point!

    I don’t like living in fear or worrying, because there isn’t much use in that anyway.

    Even though we have a 6-month emergency fund and a small bit of other savings, I’m still a bit worried about this economy.

    If it goes on for awhile, maybe layoffs will come our way, and that’s a scary thing.

    I don’t want to live in fear of a bad financial situation. I do want to live so that I can weather the storm without my finances becoming a disaster.

    Once the economy picks back up, I think I’ll be less worried about my husband being laid off. We’ll still continue to be responsible with our finances, hopefully.

  9. I love what you have to say. My spending and saving habits have not changed since this recession has hit. If you always live carefully with your money, you’ll be in good shape.

    Trevor @ Financial Nut’s last blog post..Budgeting Software Review: “Forcasting Made Simple” With A New Software Called Pocketsmith

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Hey! I'm Kacie, wife and mother of 3. I write about my family's finance: how we save money, improve our spending, and plan for the future.

I hope I can inspire and encourage you to improve your situation. See disclosure.

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