Changes in lifestyle?

[Legacy]

Hi all. I'm giving a talk next week to the Luxury Marketing Council about "What keeps the affluent awake at night." As many boaters are perceived as affluent, thought I'd ask you guys what, if anything, you've done or plan to do to change your lifestyle. For example, my wife and I are staying "closer to home" this summer, bought a cellar freezer for "food" rather than just for bait and decided to put off some significant electronics and painting projects on the boat. But what keeps me up is concern for the staff I've had to lay off and scaling back our support of important non profits.

Thoughts welcome!

Rick

[jcollins]

I swore off talking about the economy but I can't resist.

I feel real bad for those, such as yourself, than run a small business and are forced to layoff staff. In past years I was faced with that situation and never felt good about it.

Sharon and I have done the following:

Cut back from eating out. Our usual pattern was 4-5 times per month. We now limit ourselves to once or twice at a local joint opposed to expensive restaurants.

Cancelled all premium channels from DirecTV. Joined Netflix again and we are happy with that.
Did not paint the boat this year. (see other threads)
Cancelled second phone line at home.
Cancelled plans to do upgrades around the house. It can wait until next year or the year after.
Decided to keep my gas guzzler (2001 Durango R/T) rather than purchase a new one.
Sharon will purchase a Mini Cooper this year and trade in her pickup.
No credit cards. Paid off and cut them up. I do use AMEX but don't carry a balance.

We are working on quitting smoking. Besides the health reasons, I am embarressed to say how much we waste every month. It's a car payment.

Boating habits will not change very much. That is the only "vacation" we will have this year. There will be more overnights on the hook rather than marinas. I will not be shy about guests that offer to chip in for fuel or pick up the tab at a restaurant.

What keeps me awake? Nothing. I am fortunate that my industry is strong and not too affected by a recession. There seems to be a demand for networking and security. I don't sell hardware. There is no profit in that at all. I just sell "me". I can't lay anyone off, since I am the company.

[Mariner]

I am by no means affluent, so I'm not sure I fall into the category you're looking at, but I have taken a different approach to this economic environment. I see it as an opportunity, rather than an obstacle. A year ago, when I saw the prices on boats falling, I jumped out there and upgraded at what I at least felt at the time was a low point in the market. I think boat values have fallen some since, but in the big picture, I still think it was a good time to do it, since I plan to keep the boat for many years. More recently, I've doubled my investment in real estate by buying a new home and turning my old one into a rental, and despite seeing my stock porfolio slashed in half in 2008, I've trippled my investments in that category. I know these things are gambles, but I just don't think I'll ever see another opportunity like this in my lifetime to "buy low". Due to the uncertainty of my job and the economy as a whole, I'm also building cash reserves to increase my security, but I'm doing that more by putting in longer hours and trying to get more business than by cutting expenses (I have always been one who tries to keep a lid on expenses).

Today I hit the liquidation sales at Boaters World and Joe's (formerly G.I. Joe's), and it was hard to ignore the fact that the person on the other side of the counter is staring down the reality that, with every item he rings up, he is a little closer to being unemployed. And lets face it, companies are not exactly lining up to hire retail sales employees right now. So, I honestly feel bad for those people losing their jobs. But I don't feel bad for them if they have the attitude that they are losing their job and that is the end for them. I'm a firm believer in the idea that there will ALWAYS be jobs out there for hard-working, dedicated people who make an effort to market themselves and, once hired, show up ready to give 110% every day.

What keeps me up at night? I worry about some of my co-workers whose jobs I know are going to be eliminated in the coming months. As well as being dear friends, they are people I rely on every day to help put the best product out on the street. I worry whether the drastic changes that are occuring in the lending industry right now are going to actually exacerbate the problem rather than solve it, and what that will mean for my career. I worry about whether or not my renter will be continue to pay his rent, because if he doesn't, my whole plan starts to fall apart pretty quickly. Until last weekend, I worried primarily about whether my new house would be done in time to meet my move-in date.

[powerboater56]

I'm going in two directions partly as a result of the economic slump.

My wife and I are trying to sell our house to downsize -- the kids are out on their own and we don't need 5 bedrooms anymore.

On the other hand, I used the recession to buy an Albin 35 CB that was repossessed -- I couldn't pass up the opportunity even though i had planned to make a cruising boat purchase after we downsized house.

Otherwise no major changes -- we do not live grandly and have not cut back. If I don't sell my house this summer I may take further steps, including curtailing a few discretionary items and even un-retiring part-time. I've considered buying a condo and renting out this house, but haven't taken that step yet.

Even boat manufacturers targeting the ultra-wealthy are feeling the pinch. An article in my local paper today said Hinckley is laying off a substantial number of people and will close its powerboat manufacturing facility in Maine early in 2010 if they do not receive new orders soon. My family was in the boat manufacturing business for years -- a lousy industry for the most part; very capital-intensive, competitive, and highly cyclical. Like the airline business -- hardly anyone makes money.

[Denis]

I have bouts of fear one minute then excitement the next. I see opportunities in a market such as this, but at the same time my carpentry business is not anywhere near what it was a couple of years ago. I decided to do what others here have done, I bought a couple of properties for investment. Both needed a lot of work but that is the kind of work I do for others so now it was time to do it for me. Unless all the wheels fall off, I should be able to make it work out. What I really do worry about is the effect it has on my kids. Both are young married couples, my son just got out of the Coast Guard, just had his first child, has a new home plus his old home that he could not sell and a new job. My daughter is married to a Marine and she has to keep moving to keep up with him so she needs to keep giving up her job. Last move it took her about six months to find a job, now they are moving again so we'll see. I worry about them, I'm kind of a control freak, so when things are out of my control it makes me crazy.
John, by the way, I have a 2006 Mini Cooper S with 20K miles still under factory warranty until January 2010 for sale. It's in beautiful condition, silver with a black top, leather seats, kind of sporty. If your interested let me know. Denis

[jcollins]

John, by the way, I have a 2006 Mini Cooper S with 20K miles still under factory warranty until January 2010 for sale. It's in beautiful condition, silver with a black top, leather seats, kind of sporty. If your interested let me know. Denis

I'll PM you.

[chiefrcd]

I lay awake trying to figure out how to become affluent. So far nothing has lit the light bulb.

[Legacy]

Appreciate the thoughts and candor.

All the best!

Rick

[jleonard]

I lay awake trying to figure out how to become affluent. So far nothing has lit the light bulb

chief...selling the boat would be the first step.... I am also doomed to be poor.

I have had friends say to me "hey you have a boat, you must have money".
And I reply..."I have a boat that means I HAD money".

[jcollins]

have had friends say to me "hey you have a boat, you must have money".
And I reply..."I have a boat that means I HAD money".

So that's where my affluency went!

[henry robertson]

being a banker and retired asset manager i have studied the
'great depression" both years ago in school and seriously in 2007. the government wasn't active in the early years and had no bail out plans. the leading citizens(many boat owners) of the time came together and convinced a great number of the better off friends to not cut back but to actually go on a spending spree. this put shops to work,small businesses rehired and the consumer cycle was reignited.
i firmly believe in the small businesses and even though i am not a multimillioner i have continued to support my local small businesses so they can keep the employees working. if we all kept to our usual spending patterns--to extent possible--the local economies would not have as serious fall out as has happened.
i had a competitor untill april when he called and asked me to buy him out. not something you do in this economic climate. analysis showed the company had been subject to his excesses and not hurt as bad by the economy as he thought. he bailed out and i took over a new england company. the employees ,the bank and chamber were happy and doing something against the tide saved 20 jobs, a company founded in 1789, and may someday prove more than a break even deal.
this economic mess will not go away by gov. intervention--we must do our part--support your local eaterys,hardware stores and reclaim the anerican small businesses. cuting back if your means require--but if you have enough to help, by all means do so. you will help keep jobs and see a quicker recovery. have i cut back--yes-- on travels--but i spend that money in my community instead
happy sailing to all remember you can't take it with you
your southern sailor

[Mariner]

I agree, all this talk about "cutting back" has gone overboard. What needed to be cut back was the excess; buying things you didn't need with money you didn't have. But eliminating cable tv or switching brands of shampoo just to "do your part" is counter-productive. I'm not saying everyone should go out and spend, spend, spend, but for god's sake, don't think that you're helping the economy by not spending.