Author Topic: The opposite of savings during this financial crisis  (Read 2892 times)

BlueHouse

  • Magnum Stache
  • ******
  • Posts: 4132
  • Location: WDC
The opposite of savings during this financial crisis
« on: March 18, 2020, 07:50:48 AM »
During this coronavirus lockdown, it looks like I'll still have a job, at least for a while.  The past few weeks have been spent thinking about how this affects me and my retirement plans as my LNW hit $2M the day before the market tanked.  I'm now down over $300K, and the severity of it has made me stop thinking about myself and start thinking about others who have lost their jobs, have no savings, live paycheck to paycheck, etc.  This will devastate them. 

So I've decided that I will no longer try to save and contribute to my taxable accounts.  Sure, I'll keep going with 401K and Roth, but for the rest of the year, any savings beyond that will go to someone else who needs it more -- not my own personal bank account.  I feel as if I can delay a year to try to keep some other people/businesses from sinking into negative territory. 

Anybody else with me?

ixtap

  • Magnum Stache
  • ******
  • Posts: 4553
  • Age: 51
  • Location: SoCal
    • Our Sea Story
Re: The opposite of savings during this financial crisis
« Reply #1 on: March 18, 2020, 07:54:28 AM »
We have already moved our charitable giving forward and shifted recipients.

If we do start getting checks from the government, they will be going to charities, patreon, GoFundMe, etc.

Other than that, I don't actually interact with DH anymore than when he was in the office, so further discussions will wait until the weekend.

MoseyingAlong

  • Bristles
  • ***
  • Posts: 414
Re: The opposite of savings during this financial crisis
« Reply #2 on: March 18, 2020, 08:03:45 AM »
Great gauntlet, BlueHouse.

I'm increasing my contributions to
1. Local food bank
2. Organization that helps homeless teens (usually focused on finishing school)
3. Warrior Canine Connection. Their webcams of service dog puppies is a needed oxytocin boost.

achvfi

  • Pencil Stache
  • ****
  • Posts: 522
  • Location: Midwest
  • Health is wealth
Re: The opposite of savings during this financial crisis
« Reply #3 on: March 18, 2020, 09:48:38 AM »
Wow! what a timely and great topic, showing the power of FI and knowing enough! Looking forward to follow this conversation.

Congrats @BlueHouse and others in the position to take initiative. Inspiring!

kaleidoscopicalkris

  • 5 O'Clock Shadow
  • *
  • Posts: 61
Re: The opposite of savings during this financial crisis
« Reply #4 on: March 18, 2020, 12:24:48 PM »
Awesome gauntlet @BlueHouse. I've increased my contributions to my local charities for this month, and will increase them further as the situation goes on.

LifeHappens

  • Senior Mustachian
  • ********
  • Posts: 12124
  • Location: Tampa-ish
Re: The opposite of savings during this financial crisis
« Reply #5 on: March 18, 2020, 01:11:51 PM »
Thanks for starting this one. A charity we support had to cancel their biggest fundraising event of the year. We plan to send a large check and are urging others to do the same.

For those of you donating to food banks in your community (a great idea!) please consider donating cash instead of food items. Food banks in the US have access to a purchasing network which allows them to buy food at a much lower price than what we pay in typical grocery stores. This interview has a pretty good breakdown: https://www.npr.org/2011/11/22/142661882/a-case-for-cash-donations-instead-of-cans

StarBright

  • Magnum Stache
  • ******
  • Posts: 3265
Re: The opposite of savings during this financial crisis
« Reply #6 on: March 18, 2020, 02:16:40 PM »
Thanks for starting this one. A charity we support had to cancel their biggest fundraising event of the year. We plan to send a large check and are urging others to do the same.

For those of you donating to food banks in your community (a great idea!) please consider donating cash instead of food items. Food banks in the US have access to a purchasing network which allows them to buy food at a much lower price than what we pay in typical grocery stores. This interview has a pretty good breakdown: https://www.npr.org/2011/11/22/142661882/a-case-for-cash-donations-instead-of-cans

While I generally agree with this, I am on the board of a small food pantry and we are currently prohibited from placing many of our usual bulk orders due to the current circumstances. We are actually asking for food donations to get us through this current crunch.

Long term: money goes farther, but right now actual food might be more helpful (location dependent, of course).

LifeHappens

  • Senior Mustachian
  • ********
  • Posts: 12124
  • Location: Tampa-ish
Re: The opposite of savings during this financial crisis
« Reply #7 on: March 19, 2020, 10:18:39 AM »
While I generally agree with this, I am on the board of a small food pantry and we are currently prohibited from placing many of our usual bulk orders due to the current circumstances. We are actually asking for food donations to get us through this current crunch.
Thank you for sharing this! I had no idea.

Gin1984

  • Magnum Stache
  • ******
  • Posts: 4928
Re: The opposite of savings during this financial crisis
« Reply #8 on: April 13, 2020, 04:58:02 PM »
I'm buying stamps to support the USPS.

MaybeBabyMustache

  • Walrus Stache
  • *******
  • Posts: 5304
    • My Wild Ride to FI
Re: The opposite of savings during this financial crisis
« Reply #9 on: April 13, 2020, 05:01:25 PM »
My husband & I are both still employed at well paying jobs, so we've been ramping up our donations quite a bit (food pantry - cash & food, and several big COVID charitable foundations.) We are also increasing monthly help to a family member who works really hard, but is in a very challenging situation due to a disability.

brooklynmoney

  • Pencil Stache
  • ****
  • Posts: 707
  • Location: Crooklyn
Re: The opposite of savings during this financial crisis
« Reply #10 on: April 13, 2020, 08:39:10 PM »
Yes I’m in a similar boat and am ramping up financial contributions. Unfortunately today to Gofundmes for 2 men in their 40s with young families who both passed this weekend.

Taran Wanderer

  • Handlebar Stache
  • *****
  • Posts: 1402
Re: The opposite of savings during this financial crisis
« Reply #11 on: April 13, 2020, 09:08:15 PM »
We and all family members are still working or comfortably retired, so those closest to us are all in good shape.  Our spending is down because of less (no) discretionary weekend activity.  We wouldn't normal order take-out, but we are now from favorite local restaurants that we want to survive this crisis, and we've ramped up our charitable donations in March and April to local organizations that are helping those in need.

KBCB

  • Stubble
  • **
  • Posts: 156
  • Burning to Fire
Re: The opposite of savings during this financial crisis
« Reply #12 on: April 14, 2020, 06:09:59 AM »
Charitable donations for the win. Unfortunately i am not at a financial spot to do such charity but someday I sure will and this gives me all the feels. Humanity at its best.

PoutineLover

  • Handlebar Stache
  • *****
  • Posts: 1567
Re: The opposite of savings during this financial crisis
« Reply #13 on: April 14, 2020, 06:16:38 AM »
Since this whole thing started, I donated to a local mission and a food bank. I plan to do a few extra donations since I'm still getting my regular salary working from home. I don't know anyone personally who needs help, and our financial aid from the government is pretty good, so I'm going to focus on local charities who are overwhelmed with demand these days.

nkt0

  • Bristles
  • ***
  • Posts: 259
Re: The opposite of savings during this financial crisis
« Reply #14 on: April 14, 2020, 06:54:26 AM »
At the very least, people who don't need it should donate their stimulus payments to those in need.

StarBright

  • Magnum Stache
  • ******
  • Posts: 3265
Re: The opposite of savings during this financial crisis
« Reply #15 on: April 14, 2020, 07:10:49 AM »
I'm buying stamps to support the USPS.

Me too! I bought my kids each a pack that they will like (Dragons and State Fairs) and I will have them write letters to people to practice their writing. Supporting the USPS and educating in one fell swoop!

We have also been ordering takeout more (ordering twice a week instead of once a month - it has been glorious!) but are refraining from it for the next couple of weeks while our state might be peaking.

We were originally going to spend our stimulus checks but with this looking like it will drag out longer we are probably going to hold on to them now. I know my company is good through the end of May, but if some sectors don't start to open back up in early June we'll be looking at either salary cuts or people cuts.

pachnik

  • Handlebar Stache
  • *****
  • Posts: 1894
  • Age: 59
  • Location: Vancouver, BC
Re: The opposite of savings during this financial crisis
« Reply #16 on: April 14, 2020, 11:19:08 AM »
I am still working but my husband has been laid off due to Covid-19.  He will probably get the enhanced Employment Insurance called CERB which is for people out of work due to Covid-19 in Canada.  He knows he'll be fine on that amount of money and he has mentioned several times that since we follow the mustache program, we're in good shape compared to lots of others.

My investments initially went down 9% and have already gained back 2%.  Of course, fluctuations will continue. 

I make 2 monthly charitable contributions on my credit card and I am going to think about raising one or both of them. 

Great thread.