Just because the economy is imploding doesn’t mean you should entirely freeze your spending. The Wall Street Journal brings us a list of five things that are well worth their price, even in a recession.
- 1. Pay For Expert Advice: Google can’t replace your lawyer, tax advisor, or financial advisor. Open your wallet to professionals who are familiar with your particular situation.
- 2. Pay To Reduce Debt: Now isn’t the time to take on more debt, and that’s what happens if you stop paying off your existing obligations. Debt also affects your credit score, making other financial services more expensive, so stick to your debt repayment schedule and work with creditors if you need extra help.
- 3. Pay Into Your Savings Accounts: Keep saving for your future by continuing to take advantage of employer matches while they still exist.
- 4. Spend On Yourself: It’s ok to spend on yourself, but only for things that have a substantial impact. We also think it’s important to keep giving yourself little gifts here and there to help maintain your sanity. Just don’t overdo it. Think chocolate, not diamonds.
- 5. Pay For Some Things You Can Do Yourself: Keep focused on the big picture and figure out which spending is actually worthwhile. Sure, you could shovel the driveway, but if your hip’s been hurting and your 60th birthday is around the corner, give the teen next door $50 instead.
Scrimp to Save More Than Money [The Wall Street Journal]
(Photo: Jezz)
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I know they’re just throwing numbers around, but I’ll take the $50 and I’m no teenager.
@nybiker: Heart attacks and back injuries are not cheap. The $50 may be far cheaper in the long run.
@bohemian: If you’ve been shovelling by hand for decades then you should be in shape enough not to have that happen.
@j-o-h-n: Shoveling guarantees you an immunity from illness, injury and age. Gotcha.
@nybiker: man, I used to only get 10 bucks!
@nybiker: I’m just boggling at the ‘fifty bucks’ concept for shovelling! My neighbor bakes me brownies or a cake if I get her driveway and sidewalks when I do my own.
Of course, they are really delicious brownies.
@Pink Puppet: The driveway is a mile long I believe.
@Pink Puppet: Maybe the $50 is for a month of service? Or maybe the writer lives in Buffalo?
@nybiker: Most appropriate first post ever. Unless that driveway is ginormous, anybody I know would try to turn a 50 spot down out of courtesy, twice even.
I don’t know if I’m just that good of a neighbor or what, but then again, if you’re pushing 60 and need your driveway done and can afford it, throwing that out there shows the necessity of the situation and WILL get it done. I think it boils down to being a neighbor. Plenty of people enjoy and respect privacy, and asking for such a favor can be an awkward situation, but knocking/calling and stating right out of the gates that “I’ll throw you a fifty-spot to get me out of my driveway” shows the respect and need at the same time.
A neighborly person would do it, but courteously turn down about half that much. At least in my little world of proper etiquette, which I deem to be fitting with the times, yet maintaining certain old-school values.
@TaterTom:
I live in Southern California, so this is moot, but having grown up in New York….
As a teenager, you betcha I’d charge. We used to LOVE it when it would snow. We’d get together (three of us) and go house to house, shoveling driveways & walkways, and make $20 per house. At the end of the day (again, when I was a teenager and could go at it all day long) we’d go home, chill out in my friend’s basement, pass around a joint, and split up our hard-earned money. Usually around $100 each, which as a teenager, was a lot of money for a day’s work.
Today, if I still lived in NY, and my neighbor offered me $50 to shovel him out because he couldn’t do it himself, I would accept his offer, shovel the driveway, and then tell him to brew me a fresh pot of coffee and that he can keep his fifty. IT wouldn’t be about the money, it would be about being a neighbor. What goes around comes around, and one day I may be the one who needs help from a neighbor.
And, I love a good cup of fresh coffee, especially on a cold day. Which, here in SoCal, iss when it dips below 60 degrees Fahrenheit.
@Dooley: Hell, after taxes, $100 a day is a livable wage even by today’s standards.
@nybiker: I used to have to do the driveway for free! And my parents wonder why I moved where it doesn’t snow.
@nybiker:
You could get 50 dollars to shovel your neighbors driveway….if you live in Martha’s Vineyard.
I used to get 10 per driveway from my neighbors (about 3 houses in total usually) and I only got that because we had a snow blower, and they needed their driveways done before they went to work. Fifty for one driveway would be like…the dream.
@nybiker: Normally, I’d agree that seems like an awful lot to shovel a driveway. As a teenager (about 10 years ago), I’d get $10 – unless I was doing it for my parents, in which case I’d be lucky to get $5.
Today, as Massachusetts is getting hit with the blizzard from hell, well on its way to dropping 2 feet of snow in a 24-hour period… heck yeah, I’d pay $50 if it meant I didn’t have to go out there myself.
@nybiker:
All I would get for shoveling the driveway was a hot chocolate from my mom.
Nowadays I get a back-ache and an eyeroll from the wife when I get snow on the hardwood floor.
Sucks getting older.
A couple things:
First, for some of us it’s not about chocolate vs diamonds, it’s buying an ounce of regs for 100 bucks or mids for 140 instead of chronic for 60 an 1/8th.
Another point: 50 bucks to shovel the driveway? Where do you live richie rich? The going rate in my neighborhood is 10 bucks and that gets the driveway shoveled PLUS all the dog crap in the backyard from a St Bernard and a Rottie cleaned up by the friendly neighborhood homeless dude.
He’ll do any little yard job for 5 bucks. Awesome.
@sicknick: lmao! Gotta agree. Last time I shoveled a driveway the going rate was $5-$10.
@sicknick:
always go for the chronz. we aint in hs no mo.
@tbone13:
Besides, here it is LEGAL, so you can go into a store and pick out almost any level or variety of chronic!
Ahhh, I love California.
@sicknick: I agree. The only person that pays kids $50 to shovel the driveway is that odd guy living across from the playground with the elaborate video setup.
Happily, it’s California, so performing the chore shirtless isn’t much of a hardship. Although we’re puzzled: what snow is that guy worried about?!
@sicknick: Sorry but you’re paying WAY too much. Where do you live?
@arl84: just outside of Detroit.
Thats going rates around here, and not just from one source. Honestly, last time I bought elsewhere, in San Jose, CA, my buddy had a script and it was 60 bucks for 1/8th of ROMULAN at the local dispensary. That was 2004 though. Things may have changed.
$50 for shoveling?! Wow, now I feel old when $10/day was the normal.
@dragonpup: I still pay the neighborhood kid $5-$10. I figured the $50 was the “New York City Upcharge”
@humphrmi: Wall Street Journal people have driveways 5x as big as yours, as well as $35000 commodes, paid for by your BofA late fees!
@dragonpup: Jeez; I thought he was talking about a whole winter!
@dragonpup: I was thinking it must be a really big driveway!
@dragonpup: I was thinking they were probably talking about on a monthly basis, not for one time. But, I don’t know.
I feel as if the price for shoveling has gone up exponentially in that past few years, I’m only 21 and was lucky to get $10 a driveway + sidewalk + car.
I’ll throw out stocks as another thing that should be on that list: Buy American. I Am. [NY Times]
Sure, Buffet just issued a mea culpa, but it’s still good advice.
Well, if you live where the money in that picture is from…$10 to shovel a driveway is a freaking bargain.
@The Bigger Unit: A friend of mine backed his car out of his garage without looking, got it stuck in a snow drift that was twice the height of the car. He spent the rest of the day shoveling the snow back out of his garage to free his vehicle.
@The Bigger Unit: and where is that money from?
i found a note that looks similar to that recently… a 10-whatever note, printed in some non-latin lettering (possibly Cyrillic?)
@Gstein: Are you serious? The money is from Canada. It even says Canada on the $20 in the middle.
@rdwarrior: I’m surprised you saw that. I wonder how old the pic is, those 20s have been out of circulation for a number of years now (most of the bills pictured are current though)
I disagree with #1. Most people, if can easily do their own taxes and handle their own investment accounts if they do a little research. Neither is hard. Most “so-called experts lost lots of money for clients in the past year.
@kwsventures: hah, strongly disagree… how could any of those experts lose money for their clients? The value of everything that is worth anything is subjective (always changing)… 1)The stock market crashing was predetermined, 2)The fact that the banks and the government in the US would eventually have to pay for their irresponsibility was predetermined, 3)The value of property has always been volatile, again the general public should be aware of this fact…. I am sick of people not taking responsibilty for their own actions. When dealing with any of these professionals there are laws that state that the client/annuitant/customer has to sign and date and acknowledge any and all agreements. Frustrating!!
@kwsventures: I was coming to say this same thing. Has anyone’s financial planner earned their fees in the past year?
@JeffMc: Understandable but a good financial planner can help you effectively manage your losses with respect to your taxes. I would argue they may be more important in bad years than good depending on how complicated our tax situation is
@kwsventures: Given the recent track record of these “financial planers” not dealing with them would probably be a prudent thing to do.
@kwsventures: Maybe, but a good lawyer is worth the money (or as my lawyer says, “I love it when people try to do this stuff themselves, because then they have to pay me a lot more to fix it than it would have cost to do it the first time”), and while many individuals can do their own taxes, if you run a business or have a weird situation, a good CPA is worth it too.
Obviously be smart about what you can and can’t do, but for what you can’t or shouldn’t do, spend the extra to get good help. Bad help is worth less than no help, usually.
If you’re a good person, try knocking on your elderly neighbor’s door and offer to do it for free. You’ll likely get cookies or PIE in addition to good will and karma, which beats $10 any day.
@chiieddy: I’ll shovel driveways for pie!
@chiieddy: Even better, she could be a cougar! Rarh!
Also try knocking on the MILF neighbor’s door.
@alarmpro: Err, wouldn’t it be more “productive” (wink!) to knock on the MILF’s door?
@chiieddy: there’s no such thing as karma.
@rfjson: My friend asked me to tell you right after he posted this his pc blew up. LOL
@chiieddy: I live in Hawaii, do you think anyone nice old lady would make an agreement with me that if it snows, Ill shovel her driveway in return for fresh pie twice a month?
@xtc46: There is always clearing the walks of sand. I live down on the 3rd coast (Gulf coast, that is) and sand encroachment is always an issue.
@xtc46: Depends. How strongly entrenched are pagan revenge rituals and human sacrifice to volcano gods these days?
6) Move to a neighborhood where they pay $50 to shovel the drive.
Also: Renters Insurance!
@b612markt: That should be on the list before any of the 5 mentioned.
Wow, an article in the WSJ on how to spend more money. The nerve!
I’m half surprised pets weren’t on this, considering the Consumerist’s infatuation with cats
@Xkeeper: We started buying a better quality more expensive dog food. Finally after years the dog quit shedding undercoat all year long. The hair problem was probably the reason the motor in our vacuum finally died and we are now using fewer of those hair pick up roller refills.
The dog is probably healthier too, hopefully lowering the vet bill potential.
@bohemian: Here is a tip I learned for dealing with lots of pet hair:
Twice a year, take your vacuum cleaner to the local vacuum repair shop. There is usually a little old man in a tiny shop who will disassemble your entire vacuum, clean the hair and dirt out, replace the belt, and reassemble it for about $10 or $20.
It will run like NEW with greatly improved suction, and with this maintenance it will last nearly forever. Plus, the little old man is thrilled to have the business.
I’d gladly live thru two Depressions* if it meant my cats would sit still long enough for me to lard them up with that much moolah.
* Which, considering the 22nd Amendment and the DNC’s gift for snatching defeat from the jaws of victory, wouldn’t be completely out of the realm of possibility.
@Trai_Dep:
…
…
…
It’s been less than two months since Obama was elected and you’re already hoping he could stay in longer than two terms?
The Internet wonders why some people, conservative or not, worry about a seeming cult of Obama. Thanks for proving the point of allegiance by charisma rather than by trend of action.
@ZekeSulastin: What did prancing unicorns and everlasting rainbows do to you in your childhood that made you say such a thing?
@varro: Like any proper dom/sub relationship, cats only emotionally scar their owners out of l-o-v-e.
@Trai_Dep: Most of the money ends up *inside* the cat, with pricey cat food that the cats will only occasionally eat.
@Trai_Dep:
I remember when that old fool Reagan said he was going to spend his post presidential years lobbying for the repeal of the 22nd Amendment.
never happened as he was senile not only then, but the day he was born!
i’d have to say spending money on maintenance is worth the most to me.
keep the car maintained, the washer, dryer, fridge and a/c-heater running in top condition and your repair and power costs will be offset
oil change: $30.
new engine: $700- god knows how much
fridge door seal: $15- $20
cold air leaking out around a bad seal can really run up the power costs to run it and result in wasted food
a/c – heater air filters: $5
keeping them clear keeps the unit from having to run harder to pull the air through. last a/c unit i had to price was $700
@catastrophegirl: Disposable furnace filters – 99 cents at Fred Meyer. Just changed one today.
@varro: no fred meyer here, i usually buy a three pack from lowe’s.
@catastrophegirl:
I agree with keeping your appliances maintained, but I’ll have to say that I’ve saved a ton by Googling before calling for a repair service. I’ve made 3 minor repairs for <$30 total, instead of the ~$300 it would have cost to hire someone.
@cmac: oh yeah, i have replaced so many worn out dryer belts for myself and friends. costs less than $20 and takes about half an hour to do. there’s plenty of instructions online for how to do that, replace your fridge gasket, clean the drain on the dishwasher, etc.
with pictures.
the internet is your DIY friend
@catastrophegirl: I just installed a low-flow shower head this weekend for about $14. I was expecting disappointment but it actually works well! Can’t wait to see what it saves.
Apprently the number 6 thing to do is cover you cat in various currencies.
@CreativeLinks: It is a new form of hedging
@metsarethe…: Technically, the Golden Retriever, also buried under currency, in the second picture is hedging.
@CreativeLinks: Well, it’s important to keep their spirits up.
@kmw2: LOL!!!!!
@CreativeLinks:
That cat is buried entirely in canadian currency, so “various” doesn’t *really* apply.
@Matt Wiggins:
I’m amazed it took so many comments before someone noticed it was Canadian Currency! Oh to be in that picture and nabbing all that cash! While U.S. dollars would be even better [I'm in Canada, so exchange rate would rock], still.
And $50 for a driveway? Will that be Cdn, U.S. or Paypal
[Oh wait, scrap the last, I may never see my money otherwise since they'd freeze my account first.]
@CreativeLinks: Canadian dollars at that. You’t think Zimbabwe dollars would better serve as kitty litter.
@CreativeLinks: i is pimp cat eh?
I find that booze is missing from that list and consumerist should be ashamed of it. Best investment of my life is a fifth of jack Daniels after my 401 took a nose dive
That cat is rolling in hard currency!
Speaking of hard currency, what about buying gold coins?
Would that be a good thing to buy now or would it be too expensive in a recession?
These all sound like things to benefit Wall Street, NOT YOU and I.
@framitz: Especially “work with creditors if you need extra help”.
Or file Chapter 7 bankruptcy and get rid of all of the debt, or Chapter 13 and get rid of a lot of it.
Remember, that “extra help” from the creditors will turn into a 1099-C and tax liability next year, while Bank of America or Capital One will get a write-off.
What about investing for the long haul? It’s like salmon, right? Everyone jumping out of the market means it’s a good time to swim against the current and buy, right?
Yes, some of us will be eaten by bears. But some of us will get to the lake and spawn like there’s no tomorrow.
@Islandkiwi: Too bad salmon die shortly after they spawn.
@Tiber: i think that’s the point. to die with the most money.
Food/water. Shelter. Clothes. Heat. All else is negotiable. The five things listed above are WAY up on Maslow’s Hierarchy – WSJ again proves its ridiculous degree of separation from realities of the average citizen, who can’t afford an attorney under any circumstances, would be laughed out of a financial advisor’s office (if not escorted out by security), and must cross their fingers and pray each year at tax time. Savings? What savings? Maslow’s Hierarchy again…you have to make enough money to pay for basic necessities before you can save – or borrow. When they write about paying down debt, they didn’t have paying down arrears on utility bills in mind. And you have to be able to have at least basic food on the table every day before you can indulge in chocolate. And I promise you that there are a lot of real Americans out there who would think they’d hit paydirt if offered a snow-shoveling gig for $50, and they would take it in a heartbeat. (I might move north that money, myself.) These are the same folks whose DIY accomplishments often include minor self-surgery as required because they don’t have health insurance and “make too much money” to get public assistance for health care, but nowhere near enough to pay for it out of pocket.
@RodAox – pass the bottle, will ya? ;o)
@Keter: I agree. I thought the list would be like. 1) Rent/Mortgage, 2) Food, 3) Transport (Public), 4) Heat and 5) Electricity
With, you know, tips on how to scrounge free wireless and live without water.
Also, of the five they chose, without any sort of real prioritization, that’s meaningless. Do I save or pay down debt?! Is it really more important to pay an independent advisor than my credit card?
This list is poo.
@XenaCabarn: People struggling with basic comfort and survival are probably not the target audience of The Wall Street Journal.
@failurate: But they’re a secondary market – old Wall Street Journals make excellent Bush Blankets (covering you while sleeping outside after you’ve been evicted/foreclosed on), and they burn well in oil drums to provide heat.
@Keter: You forgot sex. If you can’t pay for yours with a good personality and/or cooking skillz, then for goodness sake spend the extra $$ for quality!
when the pensions fail, wet cat food will go up in price as it flies off the shelves. It’s not that bad if you heat it up and use some garnish.
@Onion_Volcano: I can’t tell the difference *visually* between canned cat food and Potted Meat Food Product.
I know the Canadian Dollar has taken a beating (for no apparent reason) but to shower your cat in money doesn’t seem too cost effective. And the going rate in Canada for shoveling is 10 bucks unless you have a REALLY big ass driveway.
@Robert Francis Corrigan: covering the cat in money is my new savings plan. while the cat has the money i can’t spend it frivolously. she’d bite me to keep from having to get up
@Robert Francis Corrigan: Canadian snowflakes are MUCH bigger than ours, so I’d hold out for $15.
I’ve found one of the things worth paying for in a recession is something you were going to buy anyway but that is now cheap or cheaper (assuming you still have the money of course).
I’ve picked up a good deal on a truck and an absolute steal on a repossessed boat in the past few months. Also great deals on used shop tools.
One thing that isn’t dropping in price: firearms.
and then there’s my father in law who says … “you can’t spend your money when you’re dead, might as well go out in debt …”
I have a feeling that’s going to bite me when he dies …
Actually to me the most impressive part of this article is that the old style $20′s still appear to be relatively crisp. I used to handle a lot of cash in my old job, most of the older 20s I got were falling apart.
For $50 give me a call and I’ll shovel your driveway.
This article came out of the Wall Street Journal – of course the writer’s audience is paying people $50 to clear a driveway!!
Sorry… I’m not interested in taking recession survival advice from *anyone* who would write an article and not recognize that $50 for clearing a driveway is unreasonable.
How about this advice – SPEND LESS THAN YOU MAKE!! Imagine the wrench that would throw into things if the government and general population had to follow THAT rule!
In all honesty, I think there’s another item missing from this list… that is also pretty darn important.
Life Insurance.
I may never use it, but in this screwed economy, it’s worth the small amount a month [less then the driveway shovelling] to know that if something happens and I go to the hospital, I’m covered and they send me money to cover my bills and expenses. [Which actually adds up to a bit more then I get paid daily after taxes if it's something small and just over double if it's bad]
Definitely worth paying for in a recession. Especially when a bad accident can sideline me for a while.
[Crosses fingers that nothing happens]
@Sifl: Sounds like you’re talking about health insurance, not life insurance. And if you do, I’d agree.
#6 – Shotgun shells.
What good is having anything useful or of value if someone can just take it from you?
I guess Tax Cat’s wisdom falls under number 1.
I never skimp on toilet paper.
You buy the cheap stuff, and you will regret it.
@bodah: X2. Just brought home a Charmin Ultra 18 pack. I don’t like to get under 6 rolls in the stash.
fifty dollars to shovel a driveway?1/!/!
and back where i live, they do it for ten hahahaha
Why shovel, that’s what snow blowers are for.
Here’s my list:
1. Don’t skimp on trading your expert advice for another person’s expert advice. I’ll reformat your hard drive after a viral hit, and you’ll fix my dryer after the the heating element goes out. I’ll dogsit your dog for a weekend, if you’ll finalize my will. I’ll do your taxes if you’ll take a look at my car’s air conditioner.
2. Spend money on yourself — buy health insurance if there’s ANY possible way to afford it, get your teeth cleaned, don’t ignore suspicious skin spots, buy and wear sunscreen, “splurge” on nutritious food, and for heaven’s sake use birth control.
Right now, all my cash is going toward paying off student loans, maintaining an emergency savings fund and — theater tickets. This is probably the last year I’ll live in New York City, and because I’m moving someplace cheaper, the likelihood I’ll ever be able to see theater this varied and this good again is very low. So it’s a worthwhile indulgence for me. (Also, these days, it’s a lot easier to get bargains on tickets.)
7. A properly stocked emergency kit stashed away somewhere safe where it won’t be tampered with or pilfered from including at least the following:
* Flashlights(preferably 1 for each family member)/w batteries. Crank up ones good too.
* At least 2 cases of bottled water per person(preferably more).
* Battery powered radio(preferably with weather band) w/batteries. Crank up one good too.
* Medical supply kit.
* Clean empty containers to store water.
* Non-perishable supplies of food.
* Extra blankets.
* A box of ammunition for every firearm you own
* Several tarps
* Pads of paper, pencils, etc.
* Half a dozen rolls of toilet paper(trust me).
* Stuff to keep kids occupied (games, books, etc). Stuff to keep you occupied (books, etc). Bargain book rack at the book store good place to get them on the cheap.
* Binding material (duct tape, rope, wire, etc)
* Lighters, matches, or some way to reliably start fire (keep some non-treated steel wool in a ziploc to aid in this. Also remember your 6 rolls of TP)
This is just a starting point to what you should have in your emergency kit. Tailor it to the situations you may encounter, such as tornados in the midwest, hurricanes on the coast, etc. My emergency kit has all of the above and more and is stored in one of those metal double door cabinets in the basement to keep everything dry and errant critters out.
@fatcop: Also forgot to add a few hundred bucks cash. Can’t get at your money if your banks power is out.
@fatcop:
Living in Florida, I have to definitely agree. We’ve never had things get so bad as to have to use the food or medical supplies, but the books/flashlights/etc. are definitely useful.
Also! If you are a pet owner, be sure to have supplies for them in the emergency kit! We usually have dry food in a plastic jar for my kitties, and plenty of extra water.
@fatcop: Your list, while admirably comprehensive, has nothing in the Defense from Zombie Hordes category.
@Trai_Dep: See ammunition.
I’ve found that now is the perfect time to start doing renovations that you can tackle yourself. I’m finishing my attic, and electrical wire is the cheapest I’ve ever seen it – $150 for a 1000′ roll of 12/2, when a 250′ roll was almost that amount a couple years ago. Also, I got a great deal on drywall and all the accessories, and with some help from family we’re getting it done.
My hope is that fixing up the house now will pay dividends later when the housing crisis eases, and I can sell my house for a decent price instead of less than what I paid for it. I’m kind of lucky as housing prices in our area have only gone down about 3% or so.
First off paying an”expert” to do what? Most things can be researched on the internet,Usually on a .gov or .org website and you understand more of the answer, I worked as a consultant for two years and except for law rules and income tax,the library or the internet had the answer that was needed.
secondly reducing debt can be done on your own I got my debt to zero in two years by paying off the principle.
Third you should always pay yourself first each month.
fourth “do without”it won’t hurt you.
last but not least older people need exercise as much as younger people. I’m 66 and do all my own chores.. And I have a friend that’s 90(yes ninety)and works every day a little slower but still builds shelves, a patio, tv stands,even a camping trailer using only solar power……
Why do people not realize that they usually are their own worst enemy, I cannot understand the “me” generation
that have to have the newest , the best, or whatever.
Save for what you want, Pay in cash,have no bills except for electricity,water ,rent or mortgage payment..
you will be surprised at how much you can have and do.
Number 5 is a bit unrealistic. After the sixth time paying $50 for someone to shovel, you could have bought a snowthrower. I’m guessing you live in a place where it doesn’t snow very much, and that you are not worried about saving your own pennies.
Two words: Health Insurance.
Two more words: Use it.
Anyone want to help me go into business? I’ve been thinking for years that given the state of the economy there’s eventually going to be a place on supermarket shelves for Alpo Helper.