Spending Freeze

Back in September, I stopped transacting.  I mean, stopped cold: no new clothes, no meals out, no books (ouch!), no presents, no music, no memberships . . . nothing.  The stock market drop; the revelations of corporate corruption and greed; the collapse of Merrill, Lehman, WAMU, Wachovia, AIG; the housing and mortgage collapse; the auto industry bailout; and the return of Britney Spears to the airwaves made me pause and reevaluate my spending and consumption habits.  It’s a new era.  It’s a new economy.  And I am not alone: Consumer Spending Falls: AP Article February 2, 2009

 

My personal spending freeze continues.  Uncertainties in the market and in the economy have forced me to keep my powder dry and prepare for a rainy day.  But it looks like it will be a rainy year, or more, because some witch doctors . . . I mean, economists . . . have predicted that 9,000,000 Americans will lose their jobs in 2009.  Consumption patters will continue to change, but Americans still want to spend.  And I think the decision criteria for spending is changing.

 

At dinner last week (OK, so my anti-out-to-eat strategy is not absolute), I noticed that my favorite sushi restaurant enjoyed a bit of a bustle . . . to my delight.  I commented to my favorite waiter about the crowd, and he shook his head and said that even though the crowd was large, nobody was spending.  He pointed to a table of three women and said, “See them?  They ordered $12.00 worth of food and split it.  No drinks.”  Ouch!  Old habits, like dining out, die hard, but those same habits are prone to change.

 

My wife and I have decided to wear every article of clothing that hangs in our closets, rather than buying new.  Some articles, sadly, still have tags on them and have never been worn.  We have decided to consume every bit of food in our fridge and cupboards before making a grocery run. Yes, we like Costco, but we pretty much have Costco in our cupboards.  We’ve decided to go shopping in our closets and pantries.  And we are not alone in practicing pragmatism and caution in this new economy.

 

I noticed lately that I am extremely guarded with my money.  Who ever takes my cash, in my new attitude of personal protectivism, must deserve it.  In other words, I refuse to give a dime of my money to any bank or corporation who has behaved badly.  Any restaurant who gives bad service or serves a mediocre product doesn’t get my cash.  Any bank or brokerage firm that begged for a bailout from the Feds, gets not one dime of my money . . . and that is a long list: Wachovia (Wells Fargo), Citibank, AIG, Bank of America, Countrywide.  Any airline, automaker, builder, or widget maker that makes crap or gives lousy service and begs for money from me, the taxpayer, must deserve my hard-earned cash. 

If you build it, they will come . . . but it better be built damned well, and offered at the right price.  Corporate America, if you really want me to spend my money, prove it.

Comments

[Jim Mc Mahon]

Good points Joel. I noticed that Chick-f-la had an 11% increase in sales last year. One of the few compaines to do that. I think that they earn our dollars.

Keep it up.

[The Hiker]

No doubt! I'm becoming more and more disappointed in my current party. I know we have a stereotype, but come on!!

[Stephen Hull]

Good Blog, please send a copy to President Obama, Speaker Pelosi, and Senate Majority Leader Reid. It's time we all lived within our means and goverment should be no different.

[charyl]

You go, Joel! Here, here. Beautifully stated. It is a matter of breaking old habits and finding liberation in saying in "no more."

Love your blog!!!