Recession Resolution

Call it a recession, call it hard times, call it whatever you want, but I'm shorter on cash than I used to be, despite making more than double what I was 5 years ago. With that, I decided I needed a recession resolution. It's similar to a New Year's Resolution- it's a set of goals or rules to live by until finances look up.

It all started with a Lucky magazine. If you are familiar, you know that it's all about shopping. They find the best things you MUST have, and price is rarely a determinant to whether you MUST have it or not. It's also the magazine with stickers included so you can stick the pages where you've found something awesome. Well, I found myself sticking clothing and cosmetics clearing the $100 mark. Now, I would never spend more than like $60 on a single item of clothing, and probably not more than $30 for anything cosmetic, but somehow seeing the $100 price, I'm tricked into thinking that $30 is a good deal.

So, my first resolution was this: I resolute not to spend more than $10 on a cosmetic item with two small exceptions. The first is bulk items - you know the $15 bottle of Pantene at Costco that's larger than your thigh. The second is skin care. This only includes face wash, moisturizer and eye cream. Period. I just don't feel you get a quality item at all for under $10 (in most cases).

I posed the same challenge to my friends and family and the responses were all great. Some people went further than others, but all enjoyed reading the responses of others. And so here is the list so far. Such great stuff!

BC: When eating out never order soft drinks, tea, or bottled water. Always order ice water only. It's better for you and can save about $2.00 every time.

LQ has three: "First of all: I am putting $100 per month in an envelope and that is now my "lunch money" for the month (previously I ate out every day, usually for $8-$10 per day = $150-$200/month). Second: No purchases of bottled water. I travel a lot but I can carry an empty water bottle when traveling and find a place to fill it. Third: No book purchases except on REALLY special occasions (I just couldn't resist "The World Without Us" this week). I have at least 50 great books at home that I haven't read, and many friends who would lend me books. Any book I do purchase and read immediately goes into someone elses hands so THEY don't have to buy a book."

SM is avoiding financing ANYTHING, even at 0% so as not to get bogged down with required payments. The only thing she's financing at the moment is their house.

TW has a few ideas: Buying clothing only when it's on sale (unless it's unavoidable), using a cleaning product until it's gone before replacing it (even if she doesn't like it very much), and fewer trips to the grocery store by being creative in the kitchen - using items already at home (usually found in the freezer). Also, she's eating out less and using coupons whenever possible.

JW takes a more spiritual approach by tithing 10% of his income. Here are his words "Because since I've started doing that I've had no impact of recession in my life…only the opposite. I would recommend this to anyone….give back what he has given you…in faith, and it will be returned…and in my case more than I ever would have imagined."

NG, a new mom, registered for cloth diapers, and will use diaper liners ($.06 a piece) once baby Jane is on formula. She's also saving a ton by breastfeeding and pumping extra to use once she goes to back work. Lastly, her husband is packing work lunches.

Every time PG is about to make a purchase, she asks herself, "Do I really need this?" Usually, the answer is "No". If she gets home and continues to think about the item, then she might consider going back for it, but usually, she gets home and completely forgets about it. As a teacher, she would see teachers at school going out to nice lunches every day during in-service week. This gets really expensive! Usually, after the second day, she would either take her lunch, or go to the nearby Wendy's and order from the dollar menu.

AE's excellent plan is going out less and cooking more.

PP is using discount laundry detergent, and a shorter laundry wash cycle. Also, once she gets home for the night, she doesn't go back out. As a very giving person, I'm sure these next two are hard but no more buying extravagant gifts for others and no buying drinks or dinners for other people unless it's their birthday or a special occasion.

KC (that's me) will not buy any cosmetics (makeup, haircare, etc) that costs over $10. My two exceptions are skin care (moisturizer, face wash, eye cream, etc) and bulk items (like the gallon size of Pantene).

LS will not drive her gas guzzling mini-van in town so long as it's just her and her daughter. She will opt for her fuel efficient Ford Focus.

JC resolves to only venture out for lunch once a week.

TO was ahead of me on this and has a list: No more Starbucks. No more dollar bin items at Target unless they are really useful (it's just crap and gets thrown out sooner or later). She'll only order water when she's dining out, and no more "additional charge" add-ons for food (cheese, avocado, sour cream, etc). She's only buying paper goods and staple items when they are on sale, and even then, she's going to stock up. Lastly, no more unnecessary purchases, particularly clothes!