ING Direct USA’s We, the Savers blog issued a saver’s guide to the recession slang.
The old and the new
The guide relives some well-known financial markets terms, such as the “dead cat bounce”. This nasty-sounding phrase refers to a temporary rise in price of a falling share. Some of the less traditional entries include “spave” (thinking that spending money on reduced items is actually saving) and the “moneymoon” (time between buying an item and buyer’s remorse kicking in). Recessionistas look stylish while on a budget and savereuphoria is felt when money is in the bank. In-sourcing refers those who used to hire help for cleaning, gardening and other activities but now do it themselves.
Try not to be “financially fragile”
While the catchy words are fun, they also have a serious side.
The term “financially fragile”, for example, refers to individuals unable to come up with $2,000 (about €1,400) in less than 30 days. The eZonomics story How fragile are our finances? tells how a major study found a “disturbingly high” proportion of people in the United States was “financially fragile”. In that research, 50% or more of people in Portugal, the US, Germany and the United Kingdom expected they would have difficulty raising $2,000 in 30 days. It highlights the importance of building an emergency fund to meet unexpected costs.
The video tutorial How much should I be saving? outlines how to set up a personal budget and build an emergency fund.