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On the Economy and Your Buying Habits

As you may have become aware, the global economy is in a bit of a slowdown and has had unprecedented amounts of volatility over the past few months. In "Budgets Squeezed, Some Families Bypass Organics," by Andrew Martin in today's New York Times, Martin writes:

"If the slowdown continues, it could have broad implications beyond the organic industry, whose success spawned a growing number of products with values-based marketing claims, from fair trade coffee to hormone-free beef to humanely raised chickens. Nearly all of them command a premium price.

While a group of core customers considers organic or locally produced products a top priority, the growth of recent years was driven by a far larger group of less committed customers. The weak economy is prompting many of them to choose which marketing claim, if any, is really important to them."

But here comes the best part . . .

"[I]f the economy continues to flounder, consumers — particularly those who only occasionally shop for their products — may decide they can no longer afford to let their conscience dictate their shopping list."

Being vegan is about requiring that your conscience dictate your shopping list, and I don't see anyone not being vegan because of the economic slowdown. After all, it's less expensive to start with. However, organic is a less black and white issue. I don't regularly buy everything organic (I use the Environmental Working Group's guide when making purchasing decisions) or local (if I have a choice I buy local, and I often forego the item if I don't have a choice, but not always).

Because I'm back to writing books on financial planning, I've been thinking about money more than usual. And for the first time in my nearly 42 years, I can see that the global financial situation is probably going to get worse. And just because I'm in good financial shape today, and have a reasonably-diversified portfolio (it's tough with all of the screens I insist on, and sometimes I feel more like a venture capitalist than a regular investor), doesn't guarantee me anything. Though I don't shop much beyond food, there are a couple of things I need that I haven't bought because I'd rather have more cash in my emergency fund. If I have to fly somewhere I use miles. Even for a $200 ticket (which is not at all smart).

Unlike most people's, my home utility bill gets cheaper (by the hundreds) in winter, as that's when it's not stifling hot and we can open the house. So there's no cost to be saved there. But I've been on the lookout for ways to save money like never before, and my organic food bill, such as it is, might have to be where I go to shave some dollars.

How about you? Have you changed your purchasing habits? Has your percentage of organic food changed?

One Comment Post a comment
  1. Personally, I don't bargain shop at the grocery store. Food is a priority for me and it's not the area where I try to cut costs.

    When I tighten my budget, I do so in these areas:
    – entertainment such as eating out, cable TV, vacations
    – gasoline
    – stupid fees and unused automatic payments

    November 2, 2008

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