We’ve got the recession in full swing in Silicon Valley and our region, along with many others, is experiencing job losses left and right. So how are we coping with things right now?
Over at the US News Alpha Consumer blog, Kim Palmer has begun a new series called “Recession 2.0, Do You Feel It?”, where she’s asked a few bloggers to share their latest thoughts on this financial slowdown. Well, I just turned in my article yesterday on how we’re dealing with the recession here in Silicon Valley, and it’s now been published.
Coping With The Recession: Income Check
In that article, I wrote with some detail about the adventures (and travails) of two self-employed people who have 2 dependents. My spouse launched his start-up around 2 years ago called BestInClass.com, and only recently did I go off to do my own projects (mostly to do with writing and internet related stuff). We’re doing fine, given the economic setting we have right now, but is what we’re doing enough to keep us afloat in Silicon Valley, where the cost of living is ridiculously stratospheric? That’s the million dollar question.
Well, we continue to trudge on, with just a wee bit of concern about our current income levels. If we continue to bleed green for an extended period of time, we’re going to make a few adjustments (like focus on snaring more service-oriented contracts), but it looks like we’re going to hold on to status quo for now.
Cutting Costs….Hard: There Go The School Funds
Some major change in attitude though, in our household. If you’re a parent (or maybe even if you’re not), you can empathize with this story: there’s a little kid, one of our sweet neighbors, who regularly comes by to sell stuff to raise funds for his school. I’m normally pretty generous and buy items from him every time he drops by. I do the same and order a load of items from my own kids’ schools to support our school district. Unfortunately these days, we’re now watching our money like hawks and account for everything that leaves our pockets. This means that $25 scented gift candles and various overpriced assorted bric-a-bracs, chocolates and what not are no longer part of our discretionary budget. So for the first time ever, I had to leave our little neighbor boy empty-handed. The sad part of the story is, the rest of the neighborhood had the same idea (I took a peek at his order list, and it was pretty much empty).
When times get tough, priorities rule even harder.
Carnival Roundup
Now for the latest from the carnivals! MoneyNing gives us the Smile Edition of the Carnival of Personal Finance. David Ning just quit his job to be a full-time problogger too, did you know? 
Congrats to him for making the huge step! Anyway from his list of financial articles, I picked a few neat ones to showcase here:
- Free From Broke: Never Mind A New Economic Stimulus Package – Save Yourself! Here are more thoughts on the second stimulus check, and the 2009 economic stimulus package.
- Cash Money Life: Year End Retirement Plan Moves
- The Wisdom Journal: Money Is 100 Percent Emotional
Next up, The Festival of Frugality was put together by The Financial Wellness Project. You’ll find these posts among other money saving articles in their awesome list:
- Passive Family Income: Turn Frugal Behaviors Into A Game
- Shark Investor: How YOUR Saving Advice Caused The Financial Crisis
- Money Beagle: Saving Money By Mulching The Leaves
Recent Carnivals
- Carnival of Money Stories
- Investing Carnival
- Carnival of Money Hawks
- Road To Financial Independence
- Carnival of Debt Reduction
- Total Mind and Body Fitness Blog Carnival
- Best of Me Symphony
- Kids and Money
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I feel sad for the little boy, perhaps he could wash my car to make some money? Or mow the lawn! There are always jobs to be done, and I suspect it’s more productive for the economy than making extra scented candles.
Did you come here through a track back?
Great insight, Mr. Digerati! I don’t know if Sam would like to come over to do that though, since he’s rather tiny for a 10 year old. Somehow, it doesn’t seem “right” to make him commit to that kind of labor. But I may, of course, be terribly underestimating the abilities of this little boy.
Wish we could give to every one solicitor that comes to the door, but alas — it’s just not possible. Even the visitors at the door selling something for free (Watchtower folks) are looking a little like they’re feeling the effects of the layoffs and our new economy.
Listening to Supertramp’s “Rudy” as I write this – God I love their stuff.
P.S. – how does this blog carnival work really?
We haven’t been hit so much yet by the recession. I hope it stays that way. I can see how things could go bad quick.
Thanks for the mention!
I think the same applies everywhere. I know it does in rural Georgia where I live. People are watching their pennies and we see stores going out of business.
Recession is going on and things go downward but still not much effect.
Batten down the hatches…
Cutting Costs….Hard: There Go The School Funds
No need to kill off supporting the schools totally, however.
Flush or not – overpriced crap is still overpriced crap. I made my decision to buy the overpriced crap this year because I was going to buy it anyway, and I had the choice of buying it for 2x through the school or for x through someone whose … life choices I disagree with and don’t want to support.
Next year, however, I’ll probably opt for the “write a check for the profit”. No overpriced crap in my house or as gifts, and the school still gets the same donation amount. The man in the middle (crap wholesaler) hurts … but maybe there is room in the 2010 budget.
Schools are getting hit hard, darned hard by the flailing economy. My local public school’s budget has had the amount of money they get per child cut in half, resulting in PTA and the teachers doing some creative sacrificing and fund raising to make up the shortfall and prevent some harsh RIFs (we were not able to eliminate them completely).
More than ever, our schools need that fundraising money.
Last week, I had a neighbor kid come by and I bought one candy bar from him for this school fundraiser.
It was the only one he sold and was excited to run home and tell his parents that he made a sale.
Thanks for the mention. I’m glad you enjoyed the post!
Thank you very much for linking back to the carnival!
Much appreciated,
Mr. CC
Recession in silicon valley is just STARTING to hit. Unfortunately. The way our economy is built, much of our industry is based on venture capital financing and that has basically fallen off a cliff in the past 3 months. In the next year we will see many high tech companies going down and many thousands of employees getting laid-off. We are in for some tough times in the valley.
I think a lot of people are cutting back right now. It will probably be a leaner Christmas for most people and retailers. I have a feeling the economy will be in a rut through most of ‘09 as well. Hopefully by this time next year things will be looking up. On the plus side, this will force people to look at their finances a little more closely, which can be a god thing!
Thanks for the mention.
Thanks so much for the link!
It’ll be good to see people not spending money like there is no tomorrow, I hope to see people appreciating goods again. Kids these days often have no concept of delayed gratification.
I completely agree with the cutting costs section. Even when we have to make choices that makes us feel bad (in my case is cutting eating out with my coworkers), we should focus on the priorities. And this is what a lot of people fail to identify. The sacrifices that we make today to pay our credit card debt, build and emergency fund, or any other financial goal, will be highly rewarded tomorrow. So in this example, refusing to buy knick knacks from the boys catalog is a wise decision even if you think you make him feel bad.