Recent study: Many plan to cut entertainment expenses
A new Harris poll indicates we will be cutting back on entertaining ourselves while trying to put something away for the future. Most of us expect tough times because of the fiscal cliff. But Houston financial planner Robert Frater says putting money away is easier said than done.
“The reality is you need to have a hardcore plan to make that happen,” Frater told KTRH. “For most people the 401K is the best thing in the world because they allow you to save money before you get a chance to take it home and blow it on something else.”
Frater also doesn’t necessarily buy the fact that the fiscal cliff will lead to an immediate crisis in 2013. He thinks its more hype than actual substance, at least in the short term.
“I don’t really think there is this cliff that we’re going to fall off to oblivion come January first. It’ll be an event like Y2K. It will pass and nothing major is going to change,” Frater explained.
But many around Houston don’t see it the way Frater does. Many are buying into the fiscal cliff talk and have decided they just don't have the money to buy big ticket items right now.
“I can’t afford big purchases now. Even if I saved a little money I don’t think I’d be able to make big purchase,” one Houstonian told KTRH.
Another nervous Houstonian told KTRH she isn’t sure the economy will get better anytime soon.
“I don’t think it’s going to be possible.”
You can also count her among those that aren’t planning on buying anything ‘big’ over the next six months.
“I live paycheck to paycheck,” she explained.
There is one interesting statistic that came out of this Harris poll. Eight percent of those asked indicated they planned to open up a new business over the next six months. That's up from 6% in November of last year.