Hawaii's Economy - Tuff Days Ahead?

[Geebz]

Hi Gang,

Just got through listening to Joe Moore's report on the economy and he mentions that there will be a continual downturn through this year.

What's your opinion on that and what changes in your day-to-day life have you made because of the state of our economy?

For me, I cut out my morning pit stop for coffee and a snack before work.

[craigwatanabe]

I think if mortgage companies could give homeowners a one month reprieve, things would get better much sooner than later. IF you had a $2,000/month mortgage and was allowed to use that to pay down higher interest credit cards and necessities such as food and utilities people could get back on their financial tracks again. I mean what's one month over a 30-year mortgage? But to get to use an extra $2,000 for one month to get back on track could really help. Yes it would result in a higher interest overall, but in 30-years I would hope interest rates should drop to the point where one could refinance to a lower monthly interest rate to compensate.

I've heard of mortgage lenders using Hard Money where you would take a loan from them (they get it from investors not thru banks) backed by whatever equity you have as assets in your home. Your mortgage payments would be paid by this hard money for a period of six months. AFter six months, that hard money is included into a refinance of your existing mortgage. Investors get their money back from the equity assets of your home. During that six month time you don't make any payments for the hard money loan, but can use your income to pay down your other credit debt.

Sounds good but in today's market, home equity is dropping devaluing the property to the point where there is very little equity left despite a huge mortgage. In the end you could be paying more than what your home is worth (upside down) and unless your income improves and your credit debt lowers (resulting in a higher FICA score) you could be in worse financial shape later on.

The best advice is to find a way to improve your FICA score by calling some of your credit card issuers and work out a payment plan. There is no need to call credit councellors as they will do the same and charge a fee.

The economy can be tough for most of us, but if you make a proactive attempt to resolve your financial dillemma and slowly improve your FICA score, sub-prime loan homeowners can weather this storm.

As for everyone else, drafting and sticking to a budget is the first step to hedging your finances during these times.

I started this thread on poor man's food (http://www.hawaiithreads.com/showthread.php?t=15049)in an attempt to get others to see how you can make delicious and fufilling dinners on a dime to help stay within a food budget during these tight times without being so obvious, but now it's more important that we spend less on dining out or dining high on the hog and start looking at cheap eats that are fulfilling.

These forecoming days can be tough only if we aren't prepared for them. Get into the habit of common sense spending and we can all come out ahead once this storm passes.

[tutusue]

Hmmm...I thought this topic was covered in another thread but I couldn't find it!

Moi? I've cut my driving to an absolute minimum. Fortunately, most everything I need is within walking distance...just not doctors appts so I try to schedule more than one on the same day since they're in the same, general 'hood.

Then, I fool myself into thinking that filling my tank isn't really so bad! I fill up when the gauge reads 3/4 full! A clear case of psychological foreplay and denial all wrapped up in one! :D

There has to be a really, Really, REALLY good reason to dine out...an occasional snack wrap from McDs is acceptable...barely! Work related dining expenses are acceptable to a degree. They're also paid for by either the host company or my company.

As a side note, I've been tracking my town condo building's values online and noticed it's first, downward trend in the last month. My Makaha condo started tanking a year ago.

For the most part I plan grocery shopping around sale prices...but always have. No change there! Still, my grocery bill continues to climb 'cuz now the sale prices are about equal to the full prices from a year ago.

At this point I think I could unplug everything in my small living space and the HECO bill would still continue to head north. Right, Craig?!

Regardless...I'm still very lucky. I live in paradise where so many of the best things in life are free...have 2 very small roofs over my head...a car when absolutely necessary...a job (altho' advertising tends to get put on hold in a down economy; time will tell)...friends who like to do pot lucks, watch DVDs and just hang out...and most of my friends are funny; really, really funny. Laughter is free and extremely healthy! Gotta love that! :D

[Geebz]

Ooooopppss, :eek: I dunno how I did it but this was supposed to be on the Bishop Streat Thread. Mel or Admin, could you move it there?

[Geebz]

These forecoming days can be tough only if we aren't prepared for them. Get into the habit of common sense spending and we can all come out ahead once this storm passes.

GREAT POINT!

I have adapted my own thoughts on what (hopefully) should be in re-training Americas thought process; "He Who Dies With The Most Toys Loses".

In speaking to a small group of individuals about their situation one of the things I mention is to sell your "stuff". Stuff under your bed, in the garage, in the storage units. Most Americans are sitting on a booty of movable items. Economy is about flow. Move the old out and shrink the burden of cargo......IMO

[Bobinator]

I've held off on buying that Honda CRV, even if it means banging my head on my civic everytime I put the kids in and out of the car. :mad:

[cyleet99]

Makes me feel better that we sold almost all of our belongings before moving to Hawaii. Shipped one car and one crate. Sometimes I miss a few things, but not often. I really have been thinking about what happens here if there are problems. Living in a condo doesn't lend itself to becoming self-sustaining; neither does working a 45-minute drive away, at a job that is useful for others but doesn't provide specific things for my family except money.

I did start growing a few things in our livingroom windows (not allowed to put things out on the "virtual lanai") but that could never be enough. We have a shelf of necessary things (stove, lamps, candles, etc.) I used to be interested in homesteading ideas but cannot see it happening here.

So we work and go to school and church and keep paying the bills and pray that things will be okay. I have found myself planning trips in the car, so as to maximize the gas usage. I carry all my meals and drinks to work, and we try to cook and eat in as much as possible.

But when I got out to the beach and wander about for a few hours, tough times seem to be easier to handle. Feeling the water and watching the sea life are always calming to me; like it used to be when I would dig in the dirt in the garden. Oh, yeah, I am getting my fingers in the dirt of the potted plants in the house; that helps too, but not quite the same. All in all, I am more glad to be here than in SC.

[Geebz]

Makes me feel better that we sold almost all of our belongings before moving to Hawaii. Shipped one car and one crate.

That seems to be the trend. Less stuff means less hassles. The latest thought is "He who dies with the most toys, looses" :D

[Frankie's Market]

I've held off on buying that Honda CRV, even if it means banging my head on my civic everytime I put the kids in and out of the car. :mad:

Ah, but the flip side of the issue is that, with slow new/used car sales now, APRs are very low. Not unusual to find 0 - 2.9% financing deals for new cars from the manufacturers. If you wait until the economy gets better and sales goes up, you won't find as many low APR and incentive deals.

Of course, if your job security is an "iffy" one due to the economy, then it might be wiser to wait.

[MixedPlateBroker]

I think the economy will get worse before it gets better. It probably won't get anywhere near as bad as it did during the Reagan-era recession (http://www.pbs.org/wgbh/amex/reagan/peopleevents/pande06.html) though (well, with the possible exception of the budget deficit).

Some of the small changes we've made to our routines to help navigate through these uncertain times:


Grind and brew our morning coffee ourselves
Adjust our work schedules so we always carpool
Fill up the daily driver at Costco only before 8 a.m. or after 8 p.m.
Buy produce from open and farmers' markets as much as possible
Virtually eliminate plate lunches from our diets

Some quick calculations show that these small changes are saving us at least $418/month (conservative estimate using three-month-old gas prices). Not too shabby, if Idssm.

[cynsaligia]

I think if mortgage companies could give homeowners a one month reprieve, things would get better much sooner than later. IF you had a $2,000/month mortgage and was allowed to use that to pay down higher interest credit cards and necessities such as food and utilities people could get back on their financial tracks again. I mean what's one month over a 30-year mortgage? But to get to use an extra $2,000 for one month to get back on track could really help. Yes it would result in a higher interest overall, but in 30-years I would hope interest rates should drop to the point where one could refinance to a lower monthly interest rate to compensate.

um, does rush limbaugh know you have this opinion? he'd excommunicate you from his faithful sheep for saying this! :D

I think the economy will get worse before it gets better. It probably won't get anywhere near as bad as it did during the Reagan-era recession (http://www.pbs.org/wgbh/amex/reagan/peopleevents/pande06.html) though (well, with the possible exception of the budget deficit).

Some of the small changes we've made to our routines to help navigate through these uncertain times:


Grind and brew our morning coffee ourselves
Adjust our work schedules so we always carpool
Fill up the daily driver at Costco only before 8 a.m. or after 8 p.m.
Buy produce from open and farmers' markets as much as possible
Virtually eliminate plate lunches from our diets

Some quick calculations show that these small changes are saving us at least $418/month (conservative estimate using three-month-old gas prices). Not too shabby, if Idssm.

to add to eric's list:

i don't get my nails done at the salon anymore. i do them myself at home. savings per month: $70

i've cut back on makeup purchases. i used to spoil myself each month with additions to my makeup/fragrance collection. savings per month: between $30-$100

i've also cut back on our sartorial purchases. savings per month: $100

have to say it's not merely the state of the economy that has caused these changes in how we spend. it's part of our ever-developing five year plan.