Saving more money than ever in this crisis (expenses, debt, mortgage)

[ninjamyst]

Yes, a lot of people are unemployed or struggling financially right now. But what about those that are actually doing better financially in this crisis? People are still working. Most are working from home, not going out, not traveling, not spending money at the same rate as before. They are accumulating even more disposable income. Once states open back up, will they help offset the economic damage done by the crisis? What will they spend it on?

[matzoman]

Maybe. The ones that are able to save right now are a rare breed. Voluntary frugality is not natural trait for a contemporary American. There are not enough people like this to carry an economy. Some businesses will stay afloat but many will sink.

[beachmouse]

Originally Posted by ninjamyst

Yes, a lot of people are unemployed or struggling financially right now. But what about those that are actually doing better financially in this crisis? People are still working. Most are working from home, not going out, not traveling, not spending money at the same rate as before. They are accumulating even more disposable income. Once states open back up, will they help offset the economic damage done by the crisis? What will they spend it on?

Not much for now. Will keep moving money into savings and see how the automotive and local remodeling sectors look six months from now and see if there is value to be had in some major purchases at that point. And while Spousal Unit's job seems secure for now and we have zero debt so it doesn't matter so much if he gets a pay cut, we also want to maintain flexibility to dump and run if it's looking like 2021 will be ugly.

[redguard57]

My spending wad about 35% lower in April despite a couple massive pandemic panic grocery store runs, online purchases of supplies and home office equipment, and a concerted effort to support the local restsurants and coffee shops I like at least 2x a week.

Now that I'm adjusting to the new normal, I think I my budget might be 40%+ lower. Doing nothing but chilling at home is not that expensive.

I'm going to accelerate some things the home needs like purchases of some new furniture and lawn-garden equipment, but generally speaking this money is going into savings in expectation that we will lose our jobs. There won't be much pent up demand from me.

[athena53]

I'm retired so I don't need to worry about saving for retirement (my spending is sustainable even with the recent bear market). I'm definitely spending less, especially on travel. The amount I'd withdrawing and not spending gets divided mostly between charitable donations and funding my grandchildren's 529 accounts. I'm also withdrawing a bit less this year compared to previous years.

[floridarebel]

I’ve been getting more hours since this whole thing broke out. Very grateful to have a job. Have cut spending down to the bone. I don’t eat out or shop. Plan on increasing my weekly contributions to my 401 k by 50 percent. Every week I have money going to two separate accounts. One being my emergency account and the other I use to save up money to invest with. Have to do more research about investing. I track everything I spend and money I earn to my spreadsheet. The $1200 I got was helpful. I want to live frugally to build up a cushion so maybe I won’t have to work so much.

[Hemlock140]

We are both working from home, making the same, saving over $200/month in gas, probably another $300 in lack of restaurant meals. Yes, that additional savings is boosting our savings, and we are plopping down an extra couple of hundred/month on the principal with our mortgage payments. Where I work there are close to 400 of us working from home, and we have had a hiring freeze but no layoffs or cuts in hours, so they are all saving commute costs too.



It's as silver lining for some, but though we have additional money to spend it's really not going out into the economy. We were planning to buy a new sectional sofa in April, but no way we would do so without seeing and sitting on some. When this thing is over and stores are open again, there will be a significant spending spree by many people and lines at the restaurants that are still in business.

[usnftcret]

My spending has dropped over 30% since the stay at home orders(15 March). Even though the wife was furloughed, we still live on my income alone.

[Electrician4you]

My spending has dropped in some ways but has gone up in others.

We haven’t gone out but we still buy food. Cheaper to buy and cook at home. Well now food is getting expensive so I think a lot more people are buying less as the cost have gone up at least 10%. But cooking at home is still cheaper thank going out. I can cook just as good as a restaurant better in some ways and I know who is handling my food and prep.

We have had additional expenses on things we would normally buy but we had to buy additional quantities
Hand cleaner/disinfectant
Wipes
Disposable masks
Disposable gloves
Disposable shoe booties
( the disposable stuff is more for anyone coming in or if we have to go out a disposable mask is quick and easy.

[AnotherTouchOfWhimsy]

I'm working from home (picked up more projects so I bumped up my salary by about 20 percent). Husband has been home for four weeks and goes back to work next week.

We are still saving money. Less than before, but still in the black. It's crazy how much less we are spending... we have been able to see where we were hemorrhaging money. We were still saving and in good shape, but this really has opened our eyes and I think we will be better off in the future for it.