I really enjoyed your post. I can related to the situation not changing my life that much. I feel very lucky. I also feel awful for people who have lost any money from the crisis. The economic advice was also good/general. I think anyone, no matter how much or little they have been affected, can gain something from at least one of the points. 

www.katelynsfood.blogspot.com

I have an investment portfolio. Part of it is invested in the stock market. Obviously, I lost money - but I don't feel “awful” about it as Katelyn said because these are paper losses. I won't need this money for at least 30 more years, so short-term losses are meaningless. You are correct when you say that your retirement account does not worry you. You are young and have several decades before you will actually need that money.

Of course, it’s very different for people who are near retirement – but these people should change their asset allocation anyway to have most of their holdings in FDIC insured savings and in municipal or treasury bonds. Regardless of what anyone says, I believe that no one over the age of 50 should have more than 30% of their portfolio in the stock market. 

But I think what really scares people is the possibility of the U.S. or the global economy sliding into a decade-long, or even longer, depression. If that happens, it will affect each and every one of us.

Even if you haven't been affected - and I'm very happy for you that you haven't - it makes sense to prepare. Make sure that whatever savings you have are FDIC insured; if you have debt at all, take advantage of current low interest rates to pay off as much of that debt as you can; try to get used to living more simply and frugally; and if you have a good job, make sure you are perceived as valuable, so that you can escape possible future layoffs.

Thank you for the link, Zan. Much appreciated. :)
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I blog at MomGrind

I manage my kids' activities at UpToUs

I wasn't thinking that I was beening hurt either until I looked at the latest value for my home. It's gone down 25% and now I hear that my neighbors are losing their job. I did enjoy your post

Always looking for the best way to Get Fit and Stay Healthy.

In the short-term, there are probably a lot who may not feel the immediate impact of the past year and the recent bailout, but in the long-term, we'll all feel it. Whether it's when we try to buy a home, a car, renegotiate the terms of a loan or credit card, all those items have been affected. It's a matter of when we'll feel it.

Even the various merger talks will impact us down the road when it comes to competition. Like others, I have a few decades before I retire and because of that, I'm not panicking over my 401(k). That said, I do wonder how much of a financial hit I'll take because I'll have to contribute in making up the difference for those who are feeling the impact today.

A. L. Venable is a Random Citizen. She primarily writes at Dimple and a Smirk (dot) com and Our PDX Network.

it is just okay that you decided to make multiple jobs. in times of crisis you have something to spare. as long as a person thinks for his future then i guess that would be not a problem at all.

Check this blog Passive Income

Its true that there is actually an cetain uncertainity prevailing in almost all types of areas like jobs, business etc today due to the fear of recession.. but I personally feel one should'nt need to worry more about this as it is a temporary one and things will bounce back to normal quiet soon. Its more of mind than money the reason behind this fall now. The current scenario has also brought some good news for new investors, where in they have lots of investments options (like stocks, real estate..etc) which are quiet cheap now.. if they plan well and invest wisely they can really make a fortune for sure in the near future.

Neha.

Co-author : Health After 50

Thanks for including a link to my post!

I have found, that as I am currently trying to live well below my means anyway (thanks to trying to save up for our wedding next year), we've not been that affected either. We already live on a reduced budget; the only thing I've noticed is that my friends are all less willing to spend money now too, as they are feeling the difference. We spend more time at each other's houses drinking wine rather than hitting expensive restaurants and splurging on cocktails!

FruGal

www.totallymoney.com/frugal

And if the economy keeps revealing itself to have been built on short-term thinking and that there was really no there-there, it will impact you eventually.

I grew up poor and have lived as a working class person most of my life, very modestly perhaps more modestly than I should.  I bought a house at the height of the market and have seen it's value decrease.  I happily rented for years until the house was sold and a new owner came in with a bad attitude and a huge jump in rent...at any rate...I do think there are lessons for all of us in this economy and that even if it doesn't seem to have made a difference in a particular life - we are connected to other people who it has impacted.

As for caring about how one earns one's money - I think that is such nonsense and smacks of elitism.  The fact is that there are lots of jobs that bring in more money than the "suit" jobs.  I have never let my job or title determine how I feel about myself and when others have reacted either to my having a title or not having one - it gave me important info about them.

As for guilt - buy what you want to if you can afford it and feel you need it.  That wii may be your entertainment through a lot of hard-times.

Money, money, money, money...

blog.candelariasilva.com

Good and plenty!

I think Americans should take the economic crisis as an opportunity to change how we do things as a culture.  Hopefully it will spawn people into:

1.  Spending less than you make.

2.  Stop living off of credit cards.

3.  Find things that fulfill us that don't involve 'material things' so that when all of those things disappear or you can't have them anymore, it won't be such a 'loss' or devastation.  Focus on experiences and people.

While there are few people who will go unchanged by the actual crisis, we are all affected by things like the national deficit and increased taxation.

And we are all affected by everyone's dismal outlook and the national 'mood'.

Great post!

Giyen

www.baconismyenemy.com

Latest Post titled:  My Daughter Is Listening to Bob Marley, Now What?

One thing women are good at is having a contingency plan.  I've been worried about the economy too, but I tend to plan instead of panic.  Something will happen, either good or bad.  I've stocked up on water, food and learned basic first-aid.  It's fun and interesting to learn the art of preparing.  You don't have to be crazy, just enough to make it a little more comfortable and worry less.  Visit:  www.survivallady.com

We've suffered a bit.  Hubs owns a small business that hasn't seen as much work this year and our investments have taken a bit of a downturn.  But, we've made adjustments here and there (i.e. generic diapers, coupon clipping and less eating out) and, overall, our quality of life has not suffered.

I don't think you should worry.  Instead, be grateful for the position you're in and continue to keep yourself educated and aware.  The world will continue to turn, the sun will eventually come out, and this too shall pass.

April

www.AprilsLittleFamily.blogspot.com

This economy is pretty scary. When you live on a limited budget. I have to cut a lot of corners.

Chronic Chick Talk

I wouldn't be worried. If you have a savings account that can keep you going through any short term trouble you may run into you should be fine, What is there to do even if you are affected by it later? 

Our family does not have have credit cards, I have a savings account and an investment portfolio. I was always afraid of the stock market, but when everything plummetted ... I bought in. So my investments have nowhere to go but up. (Unless the companies go out of business entirely, but I don't invest with grocery money! LOL) 

We were already living well below our means - one car for a family of four, shopping at Aldi, eating out a few times a month rather than multiple times a week...the usual. 

Now we are looking into getting a second car for $1000 so my husband can run it into the ground commuting and I can have our "nice" (2003) car in order to take the kids to preschoool. Buying this car will actually drop our auto insurance premium with the multi-car discount. The car will pay for itself in a year though this reduced rate.

I just don't see this affecting us very much. We already have a house, and really don't care how devalued it gets (haven't looked into it even) because...so what? It's the same four walls today as it will be in a year. Why do I care what it would be worth if I sold it...if I don't intend to sell it? 

I work from home as a writer and corporations are gearing up in recession to get all the customers they can ... so I've seen an influx of work. Same with my husband's marketing company. Big businesses have to work harder to keep the customers they have and court customers away from other places.

Our family has been through hard times. The ones that see you in a food pantry on the receiving end rather than the volunteering end. So I have empathy for what is happening to others, and am doing my best to find ways (like www.modestneeds.org) to help others through their times of hardship. 

jennydecki

Beyond Mom Blog