Where would you cut?

iVillage Member
Registered: 01-08-2009
Where would you cut?
110
Mon, 03-04-2013 - 12:19pm

With all this talk of cutting budgets in the air, I am wondering what options people have considered if their families were forced to cut expenses.  What changes in your spending would you make if you had to cut your spending by thirty percent?

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iVillage Member
Registered: 05-13-2009
Mon, 03-04-2013 - 8:33pm

Double post

iVillage Member
Registered: 11-14-2011
Mon, 03-04-2013 - 8:34pm

Actually, one doesn't even have to do the math to answer the question.  General things in the budget would suffice.  I don't recall you asking to see ones bank statment.

iVillage Member
Registered: 05-13-2009
Mon, 03-04-2013 - 8:40pm

jamblessedthree wrote:
<p><blockquote class="quote-msg quote-nest-1 odd"><div class="quote-author"><em class="placeholder">mycherubs</em> wrote:</div>That is because this question is not black and white Jam like some think it is.</blockquote></p><p>ITA, But that's all I'll say b/c it sounds to me like spending outweighs what's in the bank to begin with!</p>

What could be more black and white?

For example: We make 100K. Weve got a 30% cut, and now make 70K. Where do the 30% cuts come from?

Retirement savings (20%) was 20K, now 14K

Charity giving was (10%) 10K, now 7K

College savings was (10%) 10K, now 7K

Taxes were 30K (30%), probably 21K with drop in income maybe less.

Discretionary was 30K (30%), now 21K.

iVillage Member
Registered: 08-22-2009
Mon, 03-04-2013 - 8:47pm

>It would depend on what your financial picture looked like to begin with, Is there a savings/reserve in your scenario or do you immediately start cutting expenses? </p>[/quote]

Jams, I am finding if funny that you do not seem to understand the question since earlier in the day you had no problems answering it.

'First I'd have to determine what 30% of our EXPENSES are to begin with, Lol. I really don't know, We'd probably pay the only car we have a lien on off, We could afford to cut back on impulse items too, or as DH would call nickel and dime stuff, that's all I can think of.... I wouldnt' cut back the gym b/c even if I'm not personally using the Y I know our dues and donations go to a good cause, Likewise other charities."

iVillage Member
Registered: 09-01-2002
Mon, 03-04-2013 - 9:14pm

Basically live off of interest income and savings.  When investments come due, like a bond or 2, just cash out instead of letting them roll over.  No debts, no mortgages.  Basically, DH might retire young.  Or if he goes crazy, start a new company or hang out a shingle. 

iVillage Member
Registered: 09-01-2002
Mon, 03-04-2013 - 9:21pm

jamblessedthree wrote:
  It would depend on what your financial picture looked like to begin with, Is there a savings/reserve in your scenario or do you immediately start cutting expenses?

Exactly.  I don't know why anyone is having a problem with this.  Either you have a safety net, or not.  I find it funny how few Americans save for college and in the typical debate, you're odd man out.  You're **told** you're not saving for college.  Meanwhile, you and your DH obviously save quite a bit!  You yourself are returning to school!!

When my own good father paid for partial college for me and my siblings, he was able to take a look around and see what he had ~ and it was quite a bit.  Like many employees in good fields who worked for a few decades, he had a much higher earning potential at that point.  I was the last, so got the short end of the stick.  But, it all worked out. 

By the way, how was your all-nighter?  Did you stay up until midnight writing your paper?  Details please!

iVillage Member
Registered: 10-23-2001
Mon, 03-04-2013 - 9:27pm
Thanks for starting with an income, chestnut!

 


 


iVillage Member
Registered: 10-23-2001
Mon, 03-04-2013 - 9:47pm

My kids will be lucky to get a kick start from us, My siblings and I weren't handed any favors and I was jealous of my older sister whose 4.0 smarts earned her a full scholarship and my Evans scholar brother whose in the big league now.  Yes, It does work out in the end and everybody has a story. 

Thanks for thinking of me, I only got through 1/2 of my paper when my computer died that night, I finished it for her today.

 


 


iVillage Member
Registered: 05-13-2009
Mon, 03-04-2013 - 9:49pm

jamblessedthree wrote:
Thanks for starting with an income, chestnut!

It was hypothetical, for the math impaired.

iVillage Member
Registered: 09-01-2002
Mon, 03-04-2013 - 10:03pm

Jams, I'm so glad you finished the paper!  The dreaded and frantic computer crash!  Always at the last hour.  So exciting.  Enjoy.  I love what you said earlier ~ perpetual student.  In or out of school, we should always be students.

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