How is the Economy affecting your Hybrid Project?

[JustinOlson]

With the current state of the economy, have many of you changed the amount of money you are spending on your car projects? I'm considering taking a hiatus from my project to save money that I can use towards school if I lose my job. Anyone else considering parting out their project car or halting spending on it?

 

Regards,

Justin

[Six_Shooter]

Nope, not really.

 

I have decided to run some series of evenst sooner than I had originally planned on, partly because the economic ofrecasts are so bleak, and figure I might as well get them in now and have some fun, just incase something does happen. But the plan for the major upgrades time frame really hasn't changed and some may need to be moved up.

 

I think the problem is that the economic forcasters have made this happen. Once it is said that a recession is coming, or that spending is down, the chicken little hystaria starts up, and will eventually become a self fulfilled prophecy.

[JMortensen]

This topic is liable to get political and thrown in the shed. Before that happens, here is my take on it.

 

Worry less about "the economy" and more about "your economy". My economy is doing fine and I'm continuing to spend money prudently on my project. I think at least 75% of the problem is people worrying about the economy becoming a self-fulfilling prophecy. The economy sucks so I'm going to stop spending is a catch 22. You stop spending, manufacturers slow down production, people lose jobs, they stop spending, manufacturers slow down production, etc. Obviously if you have no money you shouldn't spend like crazy, but it's the people who do have money who stop spending out of fear that exaggerate the negative effects of an economic downturn.

 

I had a buddy of mine call me 4 times in the last month or so trying to convince me to pull my money out of WaMu. What was the reason for their failure in the last few weeks? People worrying about their failure and pulling money out despite the FDIC insurance. For what it's worth I just made some deposits and withdrawals to my WaMu accounts over the weekend. No problems whatsoever. And I didn't have to stand in a panic driven line outside the bank for hours on end either.

[JustinOlson]

I'm not trying to make this political. I am in no debt, and spend ~500-750 a month on my car project. I pay my school tuition with the money I make from my current job. The problem for me is if I lose my job, I won't be able to make rent and pay out of pocket for my school tuition. I feel it might be a good time to have a bit of a financial reserve so that I can live and go to school without working for 6-9 months. To do that I'd need $600/month for living expenses + $2500 a term for school. So 10k+/- to be financial independent for a while. I'm about 8k off that in savings

 

Justin

[JMortensen]

Having a cushion is always a good idea. 6-9 months is a pretty big cushion.

[junglist]

I do commercial real estate appraisals. The credit crunch and economic slowdown and banks folding is really hurting my income. I get paid per job on a commission only basis. Wachovia was one of my biggest clients, I haven't seen much work from them this summer and now that they are bought by Citigroup I look to lose a lot of business as Citi hardly ever uses my appraisal firm.

 

My project is plugging along, but the timetable of completion is sorta being extended out a few months as we still need to buy some of the necessary parts (clutch/driveshaft/cv adaptors/megasquirt/brakes/coilovers/passenger seat/gauges) to complete the car.

[Silver Mine Motors]

I don't have a lot of time to to write a lot about this, but since i own a company that sells parts for our z cars I can tell you that sales have gone down by more that 50% in the last two months.

[janaka]

Worry less about "the economy" and more about "your economy". My economy is doing fine and I'm continuing to spend money prudently on my project. I think at least 75% of the problem is people worrying about the economy becoming a self-fulfilling prophecy. The economy sucks so I'm going to stop spending is a catch 22. You stop spending, manufacturers slow down production, people lose jobs, they stop spending, manufacturers slow down production, etc. Obviously if you have no money you shouldn't spend like crazy, but it's the people who do have money who stop spending out of fear that exaggerate the negative effects of an economic downturn.

Our Canadian Economy isn't in the same condition as the US, BUT since everyone here relies on the US to see what is going on a LOT of people are talking resession, etc. Yes our automotive sector took a hit and is declining but the rest of us are just fine.

My market is good and as such life goes on within normal spending. Am I concerned about the overall economy, sure. Does it run my life? Not a chance.

My project is moving along as planned, I actually just got the car back today

[AK-Z]

the price of steel, has almost doubled for me, from like 4 or 5 months ago

[Silver Mine Motors]

Worry less about "the economy" and more about "your economy". My economy is doing fine and I'm continuing to spend money prudently on my project. I think at least 75% of the problem is people worrying about the economy becoming a self-fulfilling prophecy. The economy sucks so I'm going to stop spending is a catch 22. You stop spending, manufacturers slow down production, people lose jobs, they stop spending, manufacturers slow down production, etc. Obviously if you have no money you shouldn't spend like crazy, but it's the people who do have money who stop spending out of fear that exaggerate the negative effects of an economic downturn.

 

I coulden't have said it better.

 

If your economy is still good than don't change your spending.

[JustinOlson]

That's is good advice. I'm just looking at building up my cushion a bit

[Challenger]

I didnt have money when the economy was good, and I still dont. But then again I live at home, still in high school, and dont have to pay for college classes (running start program). Only expenses I had were gas and working on my car.

 

But I have also noticed a large drop in buying, and large increase in selling here. To make money while Im in school Ive been buying/selling parts and its getting less and less economical, and less people are willing to spend money for parts.

[Michael]

If you're an investor, then in a very literal sense THE economy is YOUR economy. I'm at a stage of life where gas prices don't really matter to me. And barring some calamity or gross stupidity, there will always be food on my table, even in a "depression". But how the dollar fares against the euro - I feel that. What happens to Lehman, to Wachovia., to GE - I feel that. If you invest, you feel the ills that threaten America's corporate giants. When they go down, you take it in the shorts. And that affects one's daily outlooks, which will psychologically constrain one's spending.

 

When my investments falter, I feel like a fool - a greedy, short-sighted, gullible fool.

 

After today's events especially, I am horrified at what’s going on in the markets, and feel trapped. I’m in early middle-age, and have been saving diligently for 15 years. I was looking forward to spending my 40’s as many professionals spend their 60’s: still working, but enjoying a materially successful lifestyle based on wise decisions made earlier in life. Now I see 15 years of work disappearing. I feel, perhaps, like the formerly proud parent of a model teenager, who got excellent grades and was admitted into a top college - and then got busted for drug abuse. The apple of my eye has been plucked out, leaving behind a nasty, oozing mess. And it is doubly embarrassing, because in my gut I knew that such a crisis was coming, but the stupor of smug optimism prevented me from acting to preserve my nest egg while there was still time. So what are the practical, day-to-day consequences? Well, day-to-day means that hobbies and frills are on-ice. I'm not buying parts for the Z - there's just too much guilt to be thinking about luxuries, even if "affording" them is utterly irrelevant.

 

What happened today, what has been happening in September, what may yet unfold - that is not some mere setback along a shining path towards a prosperous future - it is a catastrophe. And I am baffled why people don't appreciate that it is such a catastrophe!

[woldson]

I agree with Jmortensen. Buy low. Well in the next couple of days it may see the lowest of all time. My belief is that it is an oppertunity to invest.

 

 

Think of it this way, with carefull investing, you stand to make considerable returns on the banking sector and housing or the US finacial sector will colapse as well as the rest of the worlds. I'm betting on the U.S.A to pull through. My investmest is an optamistic one, if I'm wrong, pray.

 

Side note, if idiots run the banks, were finished!! DONT be a fool!! Your money is safe upto 100,000 fdic. Even if it fails.

You run the banks, YOU will be responsible as well.

It will be a rough couple of days, hang tight.

[Challenger]

777 points, thats big.

 

But I guess its went back up a little bit. http://moneycentral.msn.com/investor/research/msnbc/newsnap.asp?Symbol=$INDU

[johnc]

Always remember, the stock market is not the economy. Its easy to forget that.

[Armand]

I quit selling cars at Nissan because the 55-hour weeks was just too much and recently got a new job as a waiter at a very fancy Italian restaurant and have been working there for almost 2 months now. Our plates start at around $22 so almost all of our customers are fairly wealthy individuals. There has been a slight but steady decline ever since I started working there. I used to be able to make $250+ on a single Friday/Saturday in tips alone, but with the business now Its more like 180-ish. I mean its still good money for a kid out of high school but it could be a lot better.

[JSM]

My project budget has declined mainly because my sales on ebay are down.

 

My full time job money is consumed by my family and house.

 

I had 6-9 months of living cash, but after 3 years of foolish spending I'm down to about 2 months.

[JSM]

I'd also being intersted to see the visit hits to this site for the last 6 months. I'd say it has been going down. I could be wrong but as someone who visits daily there "seems" to be less activity going on lately.

 

I think will really see the truth of whos hurting when the forsale section is overwhelmed w/ things for sale.

[Mayolives]

Real estate and residential construction have been my livelihood for many years. Needless to say, my income has taken a big hit and future projections aren't too bright here on the Beach. I have curbed my spending habits and look closely at what is essential and what isn't. My race car will continue to be meticulously maintained but upgrades are mostly on hold until the black cloud passes. However I will add, the longer I live, the more I know there is wisdom in the saying, "all things will pass." My point? Things WILL get better with the passage of time. Hang in there and keep z faith.