Tempted to Go Back To My Old Spending Habits

The recession has definitely put my spending habits back in check. After my divorce and before the economic boom I was debt free, had a six month emergency savings, and was saving 15% of my pay. I won't be able to do all that again until our massive six figures of debt is paid back in full. But I am not only one thinking this way.

"According to recent a Citigroup survey, 52% of consumers say the recession has "forever changed" the way they spend and save, but that's down from 63% when the same survey was conducted a year ago."

As you can see these numbers are shifting back to the old ways. On one side this is good for the economy, but not good for consumers financial future's. My wife and I have a monthly budget of $100 each for clothes, shoes, etc., but I never have really utilize my share, until this weekend that is. I have been going for months with blessed clothes. Yes, we are extremely blessed for all that we have, but my clothes are not exactly blessed...more like holy. As in getting hole's in them.

The soles of my shoes were cracked, my socks and underwear are getting embarrassing holes in them and I thought it was time to use my $100 clothing allowance. So, I bought a new pair of shoes and socks. I threw out my old underwear and socks too, but I still have enough underwear that is in in good shape and as not to go over budget, I didn'y buy new ones just yet, I will wait until next month and probably throw in some new t-shirts while I am at it.

It felt good to spend again. I really could keep doing it again and again, but I am determined to stay within budget and not to overspend. So, as i said earlier, others are feeling the same way.

"The fear of getting fired or not being able to find another receding, at the same time you are noticing that you have holes in your socks and your car is old and you are no where near your credit card limit and your savings has grown," says Lakshman Achuthan, managing director of the Economic Cycle Research Institute."     

If that savings account that you have been growing steadily has been burning a hole in your pocket, stick to your guns. Don't deprive yourself of your needs, but remember the difference between your needs and your wants. Because nothing you buy feels as good as being debt free and having money in your pocket.

(via CNNMoney.com)

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