by Ron N. Sullivan

Created on: January 24, 2009   Last Updated: April 16, 2009

Did the financial crisis sneak up on you?

Did you see it coming? Did you prepare for it? Yes? No? Sort of?

Perhaps I started out better than some people. Last year my wife and I split our marriage in half. We sold our house, split the equity, split the furniture and paid the bills. I got myself; she got herself, the dog and two cats - and we're still friends.

I moved away and got a new job that just paid the bills. The decision not to buy real estate was unintentional foresight - kudos for me. Paranoid as I am about the stock market, my money went into a high interest savings account (which is a low interest rate these days). But my money is safe. Even in a bad economy, I won't loose my original deposit. Like weather forecasts, I hope for the best.

Bottom line: I unknowingly prepared myself for this economic upheaval. Without two paychecks, I realized the need to be smart about my finances. I made sure work, banks, food stores, and doctors were only a few minute's walk from home. A fifteen-minute stroll to downtown added movie theatres, pubs, restaurants, libraries, and auction houses to my convenience list. Savings on gas and wear and tear on my vehicle was substantial. And now that the recent financial crisis has loomed its ugly head, I'm already halfway to achieving my financial cutbacks. You've got to love it - I do.

Yet it's rather ironic, because even though I live close to all those amenities now, most of them have had to be reduced or cut out.

Cutback on Food Purchases

I take my lunch to work nowadays. No more seven-dollar lunches at noon. And coffee? I've invested in a thermos. This provides me with my caffeine hit for the day.

At food stores I now buy for the week instead of trundling off to the store everyday (I have more time for exercising and writing). Things like frozen chicken (my mainstay), bread, milk, eggs, fruits and vegetables, if stored and taken care of properly, will last a good week. I now limit myself to one sweet treat a month.

Lastly, my meal sizes are smaller. I now eat normal, healthy portions. Monthly savings: $100.00.

Entertainment Cutbacks

No more movies and DVD rentals. Any movies I watch have to be free or on the Internet. Pubs and restaurants are minimized to a bare minimum - once every two months. Monthly savings: $100.00.

Cutbacks on New Clothes and New Furniture

I frequent used clothing stores now. Regular visits uncover brand name clothes that look like new and are sometimes less than half-price. Browsing newspaper classifieds, Internet

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