Economy Delima

[HB Cruiser]

Tim, I see that you have two cruises booked this year (if I am reading this right) so are you wondering about both cruises or just this one coming first?

 

Thanks for pointing that out. I have fixed that, the Oct cruise was this past October, not '10 as it originally stated.

 

Tim

[HB Cruiser]

I guess the question here is do you have enough money to survive for 3 to 6 months without income? If you do then I say go on the cruise if you have that money budgeted because you have enough reserves to figure out what you will do if the economy does not go your way.

 

If you are living month to month but have managed to save enough for a cruise I would suggest you hold off on your cruise and save the money for the cruise into a fund to live for 3 to 6 months without pay and then after that fund is fully funded then budget for a cruise at that time.

 

We can survive for about six months without income. After that who knows.

 

Yes it was budgeted but just kind of afraid to spend it. We buy very little for each other on our anniversary, birthday, mother/father days, or Christmas. Also, since we both work at the center, our grocery bill is next to nothing since we eat most of our meals there. This is where most of our cruise money comes from.

 

There is no right/wrong answer to this question. As others have said, you never know what tomorrow might bring. For that matter, I may not wake up in the morning to read the following posts. HOWEVER, this does not mean I can just go out and do what I want, I have to consider all outcomes.

 

Again, thanks for all the posts and keep them comming. I have learned much from this thread and have enjoyed others opinions. THEY HAVE HELPED!

 

I will come back once the decision has been finalized.

 

Tim

[pscruzinboyz]

Hello all,

 

Just wanted to add my 2 cents here. The problem the entire world is facing right now is deflation. Deflation means falling prices of everything and falling interest rates. If deflation is not contained, then we (the entire world) is in big big trouble.

 

All the world's central banks are currently racing to print money to generate inflation, and do as much crazy deficit spending as possible. This is the cure for deflation.

 

Beleive it or not, if you see prices going up in the grocery store, and interest rates rising for everything, which I think we are now, then last year's problems are over.

 

The new problem will be the opposite of last year, INFLATION. During inflation, employment and business will come back with a vengence, BUT we will have an entirely new problem. Higher prices of everything.

 

So my point is, if you beleive that inflation is on the way, you better stick to your cruise. It will be MUCH MUCH more difficult to afford it later than now.

 

In fact, if you think that inflation is coming, it may be a great idea to book any future cruises now as well.

 

If Oil goes up to $150 a barrel again, Cruises are going up too. Business and incomes will also go up for everyone, but you will be blessed with booking the cruise with the old cheaper money back in 2010.

 

Warning..... I really am not sure that inflation will come, or if deflation will continue. If deflation continues, then cruise prices could drop further and job losses will go up to 30% instead of 10%.

 

But I am personally leaning towards inflation, at least in the short term thru 2011. When grocery bills increase 400% (and I think they will soon) , I will be happy I took a cruise back in 2010, back when I could afford to do so.

 

This is another way of looking at the situation.

 

I take it you are a HIGH SCHOOL DROP OUT! ;)

 

You are RIGHT!!!

 

Running for Office?

 

Mike

[chasetf]

We can survive for about six months without income. After that who knows.

 

Yes it was budgeted but just kind of afraid to spend it. We buy very little for each other on our anniversary, birthday, mother/father days, or Christmas. Also, since we both work at the center, our grocery bill is next to nothing since we eat most of our meals there. This is where most of our cruise money comes from.

 

There is no right/wrong answer to this question. As others have said, you never know what tomorrow might bring. For that matter, I may not wake up in the morning to read the following posts. HOWEVER, this does not mean I can just go out and do what I want, I have to consider all outcomes.

 

Again, thanks for all the posts and keep them coming. I have learned much from this thread and have enjoyed others opinions. THEY HAVE HELPED!

 

I will come back once the decision has been finalized.

 

Tim

You seem to me to be very fiscally responsible. Through our years of employment prior to our retirement, there were the various stages of our lives, which I believe may others similarily follow.

 

We had the responsibility of a family early on so the focus was owning a home and making sure our kids had what they needed and what we wanted to provide for them. Those were not times of worrying about retirement for instance.

 

Then as they grew older the expenses grew, college, cars, weddings...etc. But still we needed to be sure we had sufficient reserves in case something happened. It was also at this time we started thinking seriously about retirement needs.

 

The kids left and were on their own....now our focus was more pointed toward retirement. Fortunately, as we had planned, we had our family when we were young. We thus had the fortune to be in our salary "power zone" when focusing on "socking it away" for retirement.

 

So everyone needs to figure, based on where they are in their financial life, how do cruise expenses fit in. The "spend it now because you'll regret it later" crowd are the ones I wonder :confused: whether they are thinking about building a "rainy day" reserve, or thinking about retirement needs ......or they betting it all on that big promise of Social Security.... which we all know does not even provide a proverty level income.

[Cycloney]

I take it you are a HIGH SCHOOL DROP OUT! ;)

 

You are RIGHT!!!

 

Running for Office?

 

Mike

 

Mike,

I did not mean to be political at all. This is purely a mathematical way of looking at the economy. Think of two very strong boys pulling on a rope, like a tug of war.

 

One side is Debt and Deflation (the natural side), the other side is the money being thrown at the economy (the artificial side).

 

At the moment, we have a false sense of security, because both sides are at a stalemate - price stability.

 

But these strong boys cannot keep this up forever. One side is going to fall and fall very hard in just a matter of months.

 

If its deflation, then everyone should be saving cash.

If its inflation, then everyone should make future purchases now.

 

Unfortunately, no one really knows which side will fall, and this is why the bond and stock markets of the world are at a stalemate right now.

 

And by the way, I am ahead since 2007, because of my own research and investment decisions. Not a high school dropout, I assure you.

 

But I AM very very concerned about the next few months, for EVERYONE.

[Tucker in Texas]

There was a VERY upset cruiser some time during the past year whose daughter was caught carrying an apple. The fine was several hundred dollars.

 

Big difference between cookies and cereal and fruit. Yes, you will be fined big time for bringing into the US fruit and vegetables. I'm not sure about meat but think people have bought in sausage from overseas and I know cheese is o.k. because I've done it.

 

There are usually many signs prior to getting to customs about not having any fruit, etc., the penalties, and a trash can next to them to dispose of anything you have. The dogs are as good at sniffing those out as dope.

 

One of my sister's tricks is to have some kind of cookies or crackers and go over to the "something to declare" line and ask if they are o.k. When they tell her it is no problem, she processes through that line rather than get in the long line that is usually at "nothing to declare."

 

Tucker in Texas

[cheaptravel]

Lori

 

Glad to help. We have gotten so much help on these boards words cannot describe how greatful we are for them. They help me keep my sanity the 51 weeks a year I am working.

 

We (me really) are so hooked that we watch all the ship from Port Canaveral sail out EVERY Sunday. I have two laptops at the bowl. One we put on the Port Canaveral cam, the other we have both Grills and Two Palms cams minimized so we can watch the ships on all three as they go by. I am pitiful. ;) LOL

 

Tim

 

I didn't know Grills had a cam ! I love Grills - and watching the ships go past. My in-laws used to live in Titusville, so we were near Cocoa Beach a lot.

 

To the OP, I have had our next cruise booked since May '09. At the time I booked it, my Husband was laid off, but I figured he'd have a job well before the departure date and going would be no problem. Well, he hasn't found a job yet, but has been working a temp job (that will not turn out to be permanent-sadly). We hope to still be able to swing it, I've been saving here and there and do plan to scale back on the souvenier buying (which is a weakness for me). I think it will help lift our spirits and renew our energy for what's ahead. (I am also good at justifying things !!) :D

[HB Cruiser]

I didn't know Grills had a cam ! I love Grills - and watching the ships go past. My in-laws used to live in Titusville, so we were near Cocoa Beach a lot.

 

To the OP, I have had our next cruise booked since May '09. At the time I booked it, my Husband was laid off, but I figured he'd have a job well before the departure date and going would be no problem. Well, he hasn't found a job yet, but has been working a temp job (that will not turn out to be permanent-sadly). We hope to still be able to swing it, I've been saving here and there and do plan to scale back on the souvenier buying (which is a weakness for me). I think it will help lift our spirits and renew our energy for what's ahead. (I am also good at justifying things !!) :D

 

Grills webcam is http://www.sunrisemarina.com

 

Tim

[OceanSea]

If you can afford it now, go. You live once. I would not give the same advice if you couldn't afford it.

 

Cycloney, things here are very inflated. The price of everyday items has gone up. It's pretty bad. :eek:

[kuddles14]

If you budgeted the money and you can afford to spend it, go for it. Yes, we do have to spend money to help stimulate the economy. Maybe you might want to cut back on the little things, like excursions, buying big ticiketed items when in port that are not really necessary, or even the little things. Sometimes you just need to get away from the every day pressures. Next year, you may not be able to budget the money or have your health. Enjoy it now while you can.

[OceanSea]

I think HBCruiser's business caught on fire on one of his cruises. So, he may be a little more nervous than most. (I always wondered what you did). It sounds like it hasn't stopped you from cruising. :D If you've already budgeted for it then go. Nice thing about cruising, you can cancel up until final payment.

 

There is the money you save for retirement, and then there is the money you spend on enjoying your life now. Both have value, but there are many folks that don't get to enjoy that retirement money. It's a balance, but we decided to do some of our fabulous trips now. If we can do more later...then so much the better. :)

 

That is so true. My grandmother was a pretty healthy woman throughout her life, her mother lived to be 92 so it was expected she would live a pretty long life. She got stomach cancer at 70 and died a couple of weeks prior to her 73rd birthday. She had a decently long life but I think we all expected her to have a longer one that she could enjoy and not marred by cancer for most of her two last years.

 

You never know what will happen. If you are financially stable right now and can afford it now, I would go. It's good to be fiscally responsible and save for emergencies but there are times that I think life is to be lived.

[mek]

I notice you have a corner aft booked - not exactly the least expensive cabin on the ship. Since you say you can afford the cruise but seem to be very concerned about the economy, why not book a regular balcony and save some money? If I were in your shoes and felt the way you do, then I would figure out how to do the cruise, but just spend less.

[UKBayern]

We are in the same boat (no pun intended). We have our own small hotel, and both work 100 hours a week. The travel business in Europe was very badly hit last year, with the hotels being one of the worst affected trades in Germany. Germans just did not spent money on holidays anymore. We lost several collegues who had to close down or went bankrupt.

 

We did go on our cruise in November, although we had an incredibly rough year financially and thus emotionally. We did a repositioning cruise, as they are cheaper than a "normal" Med cruise, and had an inside cabin. I would not know where to get the money from for a balcony, but we did not need it anyway since we are on shore all the time anyway.

Guess what? For 10 days, there was no hotel, no worries, no bills. In fact, at one point I actually truly forgot that I owned a hotel. We came back and for the next three months had the most amazing record turnover ever. We were rested, fresh, had new ideas, new energy and it showed.

 

Are we going again this year? Absolutely! We work so hard the other 355 days of the year that we need to reload our battery at some point. We tried it once, working for 2,5 years without a break and it kills you. I do agree with other people who question if you really need that aft balcony to have a good time. With a cheaper cabin you are still on the same ship, enjoying the same food, the same shows and the same service. Maybe an almost similar cruise is cheaper at another date or with another cruiseline, saving money there too. We go at a traditionally "dead" time of the year, thus not losing a lot of business because we are not at work. Is May the low season for you, or is it better to go another month when business is traditionally slow?

[petesweet]

The Bible also says we're to prepare against bad times by saving and being a good steward of what we're given. Remember the parable about the man who gave each of his three servants talants to invest in his absence? Remember the Proverbs 31 woman? Remember the parable about virgins who were awaiting the bridegroom's approach (and the oil for their lamps)?

 

I take the "don't worry" to mean that God will always provide opportunities -- but it's up to us to manage well what he gives us.

 

Glad you said this so well, Mrs. Pete, before I could frame a response. Well said.

And to the OP: If you have absolutely no debt, I say GO FOR IT. We have two cruises booked, but I would cancel them in a heartbeat if I owed money. Debt is dangerous these days.

Kathy

[irelandvegas]

WE sail next week. Lucky for our bank account we are not big drinkers, so our bill at the end is not a shock! However, this will be our third cruise and our port excursions are a cheaper than our previous trips this time due to the economy. This is the one thing we plan to do at least once a year (we wish we could go 2X a year) so.... You already paid for the trip, watch your spending while on the ship... have fun.. and keep the economy going!!

[pcur]

Debt is dangerous these days.

Kathy

 

This is the key. I read a very interesting article on Yahoo Fianance or CNN Money last week that the American public considers being in debt to be normal. Carrying credit card debt and making minimum or small payments is just part of life. It's that type of thinking that is getting changed with the economy the way it is now. Savings averages are up for the first time in over a decade.

 

I no longer subscribe to the "3 - 6 months" of reserve cash is what you need. I think we need MORE than that, because it takes so very much longer to get work these days.

 

My solution is a bigger safety net, make sure the retirement income is solid, and spend less on the cruises, but still go on cruises. I agree that spending what one can afford stimulates the economy.

 

We are a good example of this practice: I got laid off in August 2008, and that's why I tell people I haven't decided if I'm unemployed or retired!! I keep looking but nothing so far.

 

We had no outstanding debt except our house, and our safety net lasted until we could both start our retirement income (early, but at least we had it!!!). We made a loan to our son to finance his first home, and those payments increase our income and get him ahead, too.

 

We did not stop cruising. Last year's cruises were paid in full while I was working, and we didn't cancel. This year they are less expensive, and we are booking cheaper cabins.

 

As said above by many posters: you gotta live your life, but be prepared for the future. Find that balance, and you can get through life.

 

But, like petesweet said: debt or no debt is the key.

[pcur]

There's more that might be of interest (or not :D):

 

Six years ago I started keeping what my husband and I jokingly refer to as the "MSS (Magic Spreadsheet). In it I keep estimated expenses versus income for 5 years, updating it periodically with actual information. This is invaluable for seeing if we can afford anything we want to spend money on, including cruises. If I add the cost of a cruise, for instance, I can see the affect it has on our finances for several years.

 

I also have another section that is projected retirement figures, which allows for all our retirement income, our expenses, and a running total of our finances. The difference is this one is only showing annual figures, while the other is showing weekly figures.

 

I make my estimates for expenses as "worst scenario" like high inflation increases. I show our income with low cost of living increases, and our interest rates below average.

 

If the spreadsheet says we're OK with the pessimistic estimates, then I know it's OK to go with an extra expense. Then, if interest rates go up, or cost of living is less, we have extra money!!

 

You'd be amazed at how something like this can help you make decisions. If you see your bottom line next year being negatively affected by planning a cruise this year, then you think again about how much to spend on it.

 

And, being forced into retirement early this tool has helped me sleep at night over the last 2 years, because I know where we are and where we are going. It's proved invaluable AND CORRECT for the last 6 years.

 

My oldest son has started using a version of it since he bought his condo.

[petesweet]

In the past 3 years I have lost, My mother whom I have cared for for 6years, A sister 39 years old. Had another sister diagnose with throat cancer. Move her in the house with me for over a year and took care of her.She was in ICU 5 times. Three months ago she move back in to her own home and doing well. The doctors had only gave her a couple of months Nov 2008. God took care of her. My daughter has been diagnosed with Crohn's disease, May have to have her colon took out. She's 30, single mom of 3. She now lives with us so we can help with kids. We'll find out Monday, when she goes to the surgeon. But you know what I'm not worried, He's in control. There are a lot of bad things. Not just the economy. So this is Dh and my 25th anniversary, so if he provides the means and opportunity, I'll be going. If not I won't. I'm not going to worry about it. He's in control.

 

Good attitude, Deban. Just now I have prayed for your family, and I trust things will go well for your daughter.

Kathy

[sandij]

We generally take a cruise every year and try to do a "big" one every five years, like to Europe. Well a deal came up this year on a TA and even though we just did the Med two years ago we jumped on it. My DH says you never know where we'll be in five years so we may as well enjoy it well we're still walking on our own and can practically afford it.

[petesweet]

I guess the question here is do you have enough money to survive for 3 to 6 months without income? If you do then I say go on the cruise if you have that money budgeted because you have enough reserves to figure out what you will do if the economy does not go your way.

 

If you are living month to month but have managed to save enough for a cruise I would suggest you hold off on your cruise and save the money for the cruise into a fund to live for 3 to 6 months without pay and then after that fund is fully funded then budget for a cruise at that time.

 

Great comment!

Frankly, some of these well-meaning responses are a bit disturbing. Just because we are tired, or just because we have sickness, or just because we have "budgeted" (depends on what that means--does that mean you have the $$$ in hand?) for something like a cruise doesn't mean we are entitled to it. That's a great part of the problem in this economy. Some people are losing houses because they didn't use their money wisely. (I realize that is not always the case--but often.) Some have racked up huge credit card bills, etc. Some spend every penny that comes their way and have nothing in reserve if they should lose their jobs. They feel they should deny themselves nothing. (Hence Ummgood's concern.)

Again, I'm not saying that's the attitude of everyone who has commented, but it seems to be the attitude of some. I don't think I've described my concern very coherently because I'm writing this during the commercials of "Extreme Makeover Home Addition" (!), but I feel strongly that we need to be very careful regarding our expectations.

OP, I trust you'll make the right decision, and if you go - have a GREAT time. Not saying OP should not go, but Ummgood has made a very good point.

Kathy

[pcur]

Speaking of TV programs, if any of you can get "Til Debt Do Us Part", it's very interesting. It's Canadian, but the stories and solutions are fascinating. The financial advisor that retrains the people on the show has a "punch between the eyes" attitude about finances. Good program.

[petesweet]

We can survive for about six months without income. After that who knows.

 

Yes it was budgeted but just kind of afraid to spend it. We buy very little for each other on our anniversary, birthday, mother/father days, or Christmas. Also, since we both work at the center, our grocery bill is next to nothing since we eat most of our meals there. This is where most of our cruise money comes from.

 

There is no right/wrong answer to this question. As others have said, you never know what tomorrow might bring. For that matter, I may not wake up in the morning to read the following posts. HOWEVER, this does not mean I can just go out and do what I want, I have to consider all outcomes.

 

Again, thanks for all the posts and keep them comming. I have learned much from this thread and have enjoyed others opinions. THEY HAVE HELPED!

 

I will come back once the decision has been finalized.

 

Tim

 

I'm glad to read this. It sounds like you are being very responsible. Kathy

[MrsPete]

This is the key. I read a very interesting article on Yahoo Fianance or CNN Money last week that the American public considers being in debt to be normal. Carrying credit card debt and making minimum or small payments is just part of life.

This is very scary, and I think it's the largest reason for why we're in the situation we're in now. We as a society were spending everything (and in many cases more) than we were making, and it was a house of cards that couldn't stand forever. It was bound to fall.

As said above by many posters: you gotta live your life, but be prepared for the future. Find that balance, and you can get through life.

Balance. That's my favorite word when it comes to finances. Some people argue, "Go ahead and spend -- you might die tomorrow" while others respond, "But you need to save and plan for your retirement and your kids' college." The truth lies somewhere in between. You shouldn't work non-stop and never have any downtime, but you also shouldn't spend every penny you earn. You don't want to discover in your 60s that retirement is just not going to happen for you. Nor do you want to work hard, saving for tomorrow and then realize that you have very few tomorrows left. You have to find your own healthy mid-point, and the important thing is that you're honest with yourself.

 

Also, one last comment that doesn't really fit anywhere: Yes, everyone needs rest and relaxation. But that doesn't have to come with a cruise attached. If you're not doing well financially, some time off at home or on a less expensive vacation will allow you time to recharge your batteries just as effectively as an expensive trip with plane flight and passport included.

[petesweet]

You seem to me to be very fiscally responsible. Through our years of employment prior to our retirement, there were the various stages of our lives, which I believe may others similarily follow.

 

We had the responsibility of a family early on so the focus was owning a home and making sure our kids had what they needed and what we wanted to provide for them. Those were not times of worrying about retirement for instance.

 

Then as they grew older the expenses grew, college, cars, weddings...etc. But still we needed to be sure we had sufficient reserves in case something happened. It was also at this time we started thinking seriously about retirement needs.

 

The kids left and were on their own....now our focus was more pointed toward retirement. Fortunately, as we had planned, we had our family when we were young. We thus had the fortune to be in our salary "power zone" when focusing on "socking it away" for retirement.

 

So everyone needs to figure, based on where they are in their financial life, how do cruise expenses fit in. The "spend it now because you'll regret it later" crowd are the ones I wonder :confused: whether they are thinking about building a "rainy day" reserve, or thinking about retirement needs ......or they betting it all on that big promise of Social Security.... which we all know does not even provide a proverty level income.

 

There now - you've expressed it so much better than I did. Kathy

[petesweet]

Also, one last comment that doesn't really fit anywhere: Yes, everyone needs rest and relaxation. But that doesn't have to come with a cruise attached. If you're not doing well financially, some time off at home or on a less expensive vacation will allow you time to recharge your batteries just as effectively as an expensive trip with plane flight and passport included.

 

EXACTLY. I'm 70 years old. I didn't grow up feeling I was owed a cruise! (Actually, I'm not a good example, though, because we were so poor we never even had a vacation.) But many people these days have such a sense of entitlement. I just feel such a concern for them.

Kathy