How Has the Recession Affected You?

How is the recession affecting your personally? Are you paying off debts, staying home more, and saving as much as you can? Or maybe it hasn't had much affect on you at all. Let's see what's going on in the Viewpoints panel member's lives now that we are in a recession.

Have you changed your spending habits?

Michy: Not really. I was saying several years ago that being self-employed was the way to go, and now, I think I have proof I was right. I am actually spending more money now than I was pre-recession and I truly haven't felt any effects from the recession. If I never watched the news, I wouldn't have even noticed.

Lynn: I have not changed my spending habits. I still meet my needs and many of my wants.

Gill: Not really. I probably buy a few more 'own brand' products when I'm shopping but nothing else has changed.

Cindy: Five months ago, my husband and I were lucky enough to be in the right place at the right time and took on a full-time job in addition to our self-employment. The resulting additional salary and lower bills (we're resident manager of a self-storage facility) has meant a greater opportunity to save than ever before. Because we work several jobs between us, we are making more money than we did previously.

We are attentive to the money we spend, but no more so than in previous years. We have always been bargain hunters. The one way the recession has impacted our spending is that we are planning ahead for a time when perhaps money will be tighter. This has in some cases meant spending more. For example, in June when we took the car in for an oil change and some routine maintenance, the repair shop suggested preventative maintenance that in the past we might have put off and gambled that it wouldn't be needed. We're gambling less.

Are you saving more than before?

Michy: Not really. I'd like to save more, but with health expenses and new start-up projects for my company, I just don't have the left over money to 'save' right now. I'm not hurting for anything though.

Lynn: I'm saving about the same amount as before, although I have more expenses recently.

Gill: Savings? What are those? Seriously though, I am trying to save but that's an ongoing process so it hasn't changed due to the recession.

Cindy: Yes, but only because we have more to save.

Has anyone in your family suffered a job loss?

Michy: Would you believe that everyone in my family except my daughter and sister are self-employed? My daughter was recently offered a 40k per year job she wasn't even looking for! She's only 21 and doesn't have a college degree yet! Everyone else in my family has a business that is thriving right now.

Lynn: Nobody in my family has suffered a job loss. In fact my brother's business is booming (car repair) and mine is holding steady.

Gill: Thankfully, no but I know many families close to me who have seen their main wage earner lose their job.

Cindy: My father in law lost his job more than two years ago at the very onset of this economic crisis. I wrote about it a year ago here: http://www.associatedcontent.com/article/662267/recession_affecting...Things are still really hard for them. He went back to school temporarily and trained as an auto mechanic, but for a fifty-something man in southern Illinois, finding a new job is tough.

If you were unemployed, how hard was it to find another job?

Michy: N/A

Lynn: I am self-employed. I find that when times get tight, the division of my services change toward repair and reconfiguration of existing equipment versus sales of new equipment or training of personnel.

Gill: I wasn't personally unemployed but my two eldest daughters have both been unemployed since leaving college. The jobs simply aren't there and there are very few openings being created due to the lack of new businesses and people hanging on to the jobs they have with all their might.

Cindy: We haven't been unemployed as my husband and I both are self-employed, but father-in-law's job search has been tedious and difficult. He hasn't found a new job yet.

How long do you think the recession will last?

Michy: I haven't a clue. To be honest with you, I don't understand all the dynamics of what a recession really is to speak intelligently about it. I know money is tight for folks and prices are rising and incomes are changing and companies are laying people off--beyond that, I really don't pay much attention. I'm really blessed that the so-called recession just hasn't significantly changed my life in any way.

Lynn: I think that we may be seeing signs of the recession letting up a little. The trick will be to move out of the recession without moving into a period of inflation.

Gill: I really don't understand the whole thing beyond the basic level but, remembering the last recession, I'd say a couple of years before everything starts to get back to normal.

Cindy: I have a friend who builds houses in California and they are working this summer, something they didn't do much of last year, so I think that's a good sign. But I worry about the impact the bailouts and recessionary spending will have on inflation and the economy. Also, because Illinois is such a mess as a state, I suspect the recession will last longer here than in some areas.

What advice do you have for people in dealing with the recession?

Michy: One of the things I've learned over the years is that anything is possible if you want it badly enough. We manifest and create our own reality, and with the internet, anything is possible on the work front. My advice would be to keep plugging away and find ways to establish multiple streams of passive income. THAT is the way to go today. This too shall pass... it always does.

Lynn: Move outside your comfort zone. Explore some aspect of being entrepreneurial. The people who seem least affected by this economic downturn are those who are self-employed.

Gill: If you are unemployed, swallow your pride. When jobs are thin on the ground you sometimes have to take a job you wouldn't normally consider until the situation eases.

Cindy: Don't assume there are no jobs out there or that you will have to take a crappy job. I keep seeing all kinds of opportunities, but they may not be the ones people are used to.

It seems most of the Viewpoints panel members are doing alright during the recession, although some do know people who aren't. Do you believe all self-employed individuals are doing better overall than those in traditional employment? What are your thoughts on the recession?