Your personal discretionary spending under Trump's economy?

[MtnMan]

How much of a negative impact will Trump's economic agenda damage the economy? I think a lot of people are starting to take a long, hard look at how they are going to spend their money under the Trump presidency. I know I am, as we are not going to become suddenly wealthy as promised, but poorer.

I did buy a new laptop, knowing tariffs will cause them to go up. The old one was fine, just a little dated, and is being repurposed. I replaced our 65” TV about a year ago, so that is good to go. I was able to find a large portable generator right after Hurricane Helene devastate my area, which was beneficial as we were without power for 3 weeks. FEMA came through and even reimbursed about half that cost. I’m now investing in, and installing wiring and connections to power the essentials in a simpler configuration, including the furnace.

We really don’t need or want anything major, such as a vehicle, or major repair or revision to the house, such as an addition. If we did, it would have to be an absolute necessity, else it would be put on hold. My grandson was looking for a second vehicle, something previously owned, and I advised him to buy back in December, as tariffs would cause even used car prices to go up due to demand, and that trend has already started.

I had other upgrades to the house in mind that would be nice, but not essential, such as replacing some sliding glass doors, and some other items. We have decided those will be put off indefinitely, simply to not lay out the cash to have the work done. That in turn will impact the local contractor we would hire to do the work. A negative impact on the local economy that everyone who understands how the economy works understands, except for Trump.

Question:

If you have any plans for major purchases or projects, or even some minor ones, are you having second thoughts looking to how Trump is working hard to destroy the US economy, and doing so with alarming speed and efficiency?

 

[[DHT]Osiris]

Cratered to virtually zero. All disposable income going to debt payoff, and FSM willing, investment in durable goods.

 

[Fenixgoon]

I was thinking about building a small cabin for weekend escapes, possibly Airbnb, and eventually retirement. The economic uncertainty means the only way I could even possibly do that is to sell my current house and basically pay all cash for the cabin (which is fine because the goal is to get mortgage free ASAP). But still, not something I exactly want to undertake when a potential depression is on the way.

 

[iRONic]

The time to consider these things was November 7, 2024.

 

[lxskllr]

Spending like it's going out of style. If I think I might want it any time in the next few years, I'm buying it. There's only one direction prices are gonna go, and now's the cheapest it'll ever be. No huge purchases, but I don't need anything huge.

 

[MtnMan]

The time to consider these things was November 7, 2024.

I did, but between a cult and rock chewing stupid idiots, and a few billionaires, here we are...

 

[repoman0]

No major change in my habits. I’m spending plenty (completed an addition onto my house over the past few months and first baby on the way). My wife and I save and invest something like 75% of our income though and I have stopped my usual buys into the US market. It’s now going to treasury bonds and international markets. Also slowly moving investments from US to international. I’ve ignored diversification until now. Vanguard and Fidelity both expect international markets to outperform the US over the next 10-20 years, for whatever that’s worth.

I am considering moving forward with Italian dual citizenship as well, couldn’t hurt. I can get it due to lineage for $5k in lawyer fees.

 

[Brainonska511]

Generally, most spending has remained typical: rent/utilities, weekly groceries, 1 streaming service, stuff for my dog, once-a-week takeout. Trying to explicitly save more cash for now, just to have cash on hand and bolster my >6 month emergency fund.

But also not buying any random things that I may have considered pre-election, not that we really need anything. My wife needs a new laptop, but she may be able to use some educational funding she gets once she starts residency to buy that. I think most other things are just being put off, either because we don't want anything else right now, or it just seems prudent not to be spending a lot.

Also holding off on some cash investments - just holding the money in VUSXX or in my Roth settlement fund because I figure at some point the market is going to catch on to the shenanigans... It feels like February 2020.

Also slowly moving investments from US to international. I’ve ignored diversification until now

In my retirement funds, I've had a solid diversification plan for the last few years, and keep track of it with a spreadsheet because it spans multiple accounts. A 35/65 split for international/domestic stock, and a 30/70 split for international/domestic bonds, with a 90/10 split overall for stock/bond (given my age). I did a once-a-year rebalancing in November, so don't need to touch that further.

The taxable side is a little heavier on domestic stock (~22/78), but I have a target set for that too to more smartly invest it with a longer goal/allocation in mind.

 

[Paratus]

As both my wife and I could be RIF’d at any moment we are cutting back our spending to have more readily available cash on hand.

Also opened up some regular IRAs so I can immediately roll my retirement.

I’m 60/40 we don’t get RIF’d soon up from 30/70 last week.

 

[GodisanAtheist]

Went with a joke vote on the poll but in all honesty my wife and I have been trying to tamp down of frivolous spending for the last couple of years and that hasn't really changed.

We're a decently high earning household ($300k+) but in a HCOL area and two kids, so inflation in general has hurt, and basically doing anything as a family has pinched us 4x.

Most of the changes are where and how we shop, I'll go a little out of my way to hit a discount grocer on the way home, make it a point of doing home cooked always instead of dining out once a week like we used to, small things that add up rather than any drastic changes.

Discretionary spending on trips and such is still there. I'm not going to stop living just because the floor might drop out beneath us, that seems pointless and no way to live.

Luckily we've paid down the house quite a bit and have no open car notes so that's good.

Also relatively young at the moment, so have a reasonably good chance of recovering from any economic shocks assuming the world doesn't just completely go to shit, so not making any drastic moves with investments etc.

 

[iRONic]

I did, but between a cult and rock chewing stupid idiots, and a few billionaires, here we are...

I followed your situation regarding the storm on here and I'm glad your fam is recovering and doing well.

This is what I posted in the sweatshirt thread;

This is exactly where we're at. Immediately after the election we started revising our family protocols.

-We purchased all the appliances for our upcoming kitchen remodel. (Black Friday sales)

-Revised the plans for a metal roof and had a asphalt shingle roof installed. (late December)

-Started slowly removing ~65k from a savings account so it doesn't trigger any form filing.

~ Adjusting the wife's 401(k) asset balancing.

We have always practiced the “fly under the radar” philosophy because of my disability. Our oldest child is trans, we have two biracial grandchildren, and a black son-in-law.

We've always had some type of target on our backs. I'm not paranoid but I'm well aware that there are scumbags out there looking to take advantage of an easy mark.

 

[hal2kilo]

Was thinking after price increases due to the pandemic, and Biden getting the economy under control, I was about to finally get some projects done. But, numb nuts has decided that in order to give his benefactors a tax break, he's going to use tariffs. Now prices are going to sky rocket again. Always, always treading water. Fuck him.

 

[Brainonska511]

Started slowly removing ~65k from a savings account so it doesn't trigger any form filing.

Technically, structuring withdrawals is also illegal. Nothing wrong with single, large one-time transfers.

 

[Muse]

discretionary spending. Is this alt-speak for "disposable income?" DI is something I've never believed in. None of my money is disposable.

 

[GodisanAtheist]

Was thinking after price increases due to the pandemic, and Biden getting the economy under control, I was about to finally get some projects done. But, numb nuts has decided that in order to give his benefactors a tax break, he's going to use tariffs. Now prices are going to sky rocket again. Always, always treading water. Fuck him.

- If the economy falls apart there should be plenty of materials and labor to be had on the cheap so... look forward to that?

 

[Muse]

Warning light came on in my 1997 sedan with 36k miles on it in mid-December. Brought to local high-rep shop and they wanted almost $7k to fix everything. Not having ideas on a replacement car I had them do everything. Then the security system started cutting out my ignition switch, so had that ripped out and bought a new one, to be installed in 10 days. Should be able to weather this administration without buying another car. I don't worry too much about recessions, etc. because I am next-level at frugality when I need/want to be.

 

[FelixDeCat]

Im still recovering from Bidenomics, so overall nothing has changed.

 

[Brainonska511]

Im still recovering from Bidenomics, so overall nothing has changed.

You probably would have been fine if you didn't recklessly gamble it in the stock market.

 

[nakedfrog]

Are firearms discretionary spending for a queer person in 2025?

 

[Pens1566]

Are firearms discretionary spending for a queer person in 2025?

I'd probably add a category to budget for it TBH. For anyone that's legally allowed that is.

 

[pcgeek11]

No change here. Retired and still putting away 25% of my income in savings monthly.

 

[K1052]

Front ran the tariffs on electronics. Will be good for a while. Did all kitchen appliances last year so fate willing no major outlays on the horizon.

 

[BonzaiDuck]

"Taking a serious look at discretionary spending" is at least a weekly exercise and just as often a daily review, so I would also choose "no change."

Even at age 77+, I continue to "build a nest-egg" rather than simply spend it as a matter of actuarial anticipation.

I save money monthly from my retirement annuity, and all the earnings of my nest-egg are also treated as savings. I spend money according to need, and I discipline my wants. Some people "want" to keep horses or a boat; I abjure these things. Some people "want" a new EV: I'm waiting to buy as long as I can. Food? I eat what I want, but choose lobster less frequently. Clothes? I buy warm clothes at COSTCO, and I have a splendid wardrobe accumulated over 50 years.

I recently cashed out a life insurance policy as advised by AARP, returning $20,000. I therefore terminated $50 / month automatic premiums paid since 1990. I increased spending by $8 / month -- with a Netflix subscription added to all my others.

Money, get away
Get a good job with more pay and you're okay
Money, it's a gas
Grab that cash with both hands and make a stash
New car, caviar, four star daydream
Think I'll buy me a football team
Money, get back
I'm alright, Jack, keep your hands off of my stack
Money, it's a hit
Don't give me that do-goody-good bullshit
I'm in the high-fidelity first class traveling set
And I think I need a lear jet

 

[MtnMan]

I followed your situation regarding the storm on here and I'm glad your fam is recovering and doing well.

This is what I posted in the sweatshirt thread;

This is exactly where we're at. Immediately after the election we started revising our family protocols.

-We purchased all the appliances for our upcoming kitchen remodel. (Black Friday sales)

-Revised the plans for a metal roof and had a asphalt shingle roof installed. (late December)

-Started slowly removing ~65k from a savings account so it doesn't trigger any form filing.

~ Adjusting the wife's 401(k) asset balancing.

We have always practiced the “fly under the radar” philosophy because of my disability. Our oldest child is trans, we have two biracial grandchildren, and a black son-in-law.

We've always had some type of target on our backs. I'm not paranoid but I'm well aware that there are scumbags out there looking to take advantage of an easy mark.

Helene still has a huge impact on many here, fortunately family is now on the backside of it. FEMA helped us and our daughter. Insurance stepped up on damage to my other house, where daughter and grandson live, and everything back to normal there. Today, crews worked our street removing the huge piles of storm debris, so maybe phone lines will soon be put back on poles. Right now they are just laying on banks and in yards. Some local roads have been completely replaced, but some are still in progress, which still creates traffic backups.

A storm in 2020 put a tree on our house, new roof complements of insurance.
Dishwasher replaced during lockdown when old one died. That took 4 months as there were none to be had due to supply chain.
Refrigerator replaced just over a year ago, after the old one crapped out.
Wall oven replaced 2 years ago, after old one crapped out.

At our age, investments and 401k's were already locked into secured growth plans. Up to this year, even with a very conservative schema, growth has been in the double-digit range. I'm positive tRump will end that trend.

Flying under the radar in today's world is just common sense, even without having a target on your back. There are just too many nut jobs in the wild.

 

[MtnMan]

Technically, structuring withdrawals is also illegal. Nothing wrong with single, large one-time transfers.

We have a fucking FELON as president!