Feeling the pinch?
Posted on: September 25, 2008 by Matt No Comments
Autumn has started in the northeastern reaches of Vermont; the leaves are changing, the air is crisp and everyone seems to be buckling down for winter. I really think that fall is my favorite time of year. While driving this summer and early fall so far I have noticed that it looks like everyone in the area is starting winter preparations early this year. Stacks of wood are piling up next to houses and a lot of stuff (bigger ticket items like boats and cars largely) sits on the side of the road for sale.
Before I moved back to Vermont this spring I had not really noticed how the current economy has effected people. I lived by myself in a city and the only major indicator I could see were the number of houses for sale and news about the foreclosure rates. Maybe the signs were there before I moved as well but I did not notice them until I got home. The buzz around town is: “how are you going to afford to stay warm this winter?” The local economy is not very strong in the area and people are really feeling the pinch of the recession. With the price of heating oil going up a lot of people have turned back to burning wood for heat. This has driven the price of firewood up considerably and left a number of people uncertain about what the winter holds. Rural communities have been hit hard – it makes me nervous about what the future holds. From what I have seen my area is normally a little bit behind the current trends but when a financial downturn hits we seem to see the effects quickly (a microcosm of the current state of the economy and a glimpse into how tough the economy is going to get).
When I originally started to notice everyone worrying about winter and money I figured that I had nothing to worry about – that the recession does not have any effect on my finances. I was wrong. With my move came a number of expenses to get set back up and I also moved into a new living situation where I do not live alone. I now have other people to consider in my financial planning and we all need to agree on spending. The increase in expenditures over the past few months has opened my eyes a bit and I think I am finally starting to realize that maybe this recession everyone is talking about is a big deal. Expenses for everything (gas, groceries, heating fuel, electricity) are all going up while incomes remain the same. Monthly budgets seem to get tighter every month and I now realize just how financially difficult getting by can be for families.
Making ends meet while trying to put a little aside in savings and pay down extra debt seems to get more challenging with each passing month (well more like every negative news story). I hope to have a post up with ways we are combating the pinch of the recession in the near future. Until then what are you doing to ease the pain of the pinch?
