In the Not So Comfortable Middle
If I were pressed to describe our personal economic situation I would have to say we fall into the comfortable middle class category. Our bills are paid. We have 401ks…or 4.01ks now and the boys have their 529s. We have the recommended 6 month bumper in case my husband loses his job, no credit card debt. We own our home…well the bank owns it. So why am I boring you with our financial info? Well…being in this position raises a tough question for us. We have not yet began to feel the effects of the economic collapse in our daily lives…just in our retirement and college prospects, which have time to recover. But we are not so comfortable that we can weather long term financial stress without feeling the pinch.
Our dilemma is should we be tightening our belts just in case? Just to plan and see what we could do without? Neither my husband and I are big spenders on stuff..neither care if we are in the absolute latest fashion or desire a complete collection of Greatest German Mustaches commemorative plates. Our big indulgences have mostly to do with food, wine, education, and entertainment. Most of our discretionary income gets spent locally…restaurants, CSA, local stores, local classes…all supporting local small business owners. Tightening our belts would surely mean tightening theirs. The truth is we are all in it together. If we stop supporting the local businesses and they close up…that means a decline in the neighborhood…a decline in the value of our home and the quality of local life. On the other hand…a large part of us feels foolish spending a fortune on one dinner out when it seems the country’s economy is going to hell in a hand basket. As you can see, we are truly in the middle…between responsibility to ourselves, our community, our ideals, and our favorite indulgences. And I’m sure our approach to our finances in the uncertain months/years to come will have to fall somewhere in the middle of it all. As long as the wine still falls in the yes side of the checklist I’m sure life will all be OK.
I think it’s about finding a moderate balance, which it sounds like you’ve already found!
We’re in the same postion. And I’ve had this same exact conversation with myself quite a bit lately. I’m actually glad I’m in this position. Not just because I feel so fortunate, but because I believe that my patronage in hard times will help shape a new and better economy of the future – not just help a really bad economy limp along for a few more years.
And I agree about the wine. If I didn’t live on the other side of the country, I’d invite you over for an amazing glass (or bottle?) of Willamette Valley’s best!
Now I need to go knock on wood…
This is a very good point. I’m a worrier, and I always think we should be preparing for the squeeze, but taking good care of self and community is also a very important thing.