Charlotte, NC (PRWEB) June 2, 2009
House-cleaning services, once deemed a “required” expense to allow more time for paid productivity, is now an unaffordable luxury. The money used to rid one’s home of dust bunnies now seems better saved for looming college bills. Collectively, such cost-cutting decisions amount to a prudent reaction to a serious economic shift and what some are calling an economic reset.
Shock dealt by the market is laying the foundation for deep, long- term change where quick or temporary adjustments won’t do. Rocked to their core, consumers are saying a good-bye to frivolous expenditures. In fact, Americans say that even after the recession ends, their spending will return to just 86% of pre-recession levels, which equates to an approximate 10% drop, according to a new survey by AlixPartners LLP. On the savings front, the survey revealed that once the recession ends, Americans plan to save 14% of their total earnings, with the replenishment of their 401(k) and other retirement savings their biggest long-term concerns. In the end, this financial crisis may be recorded as a “generation-changing moment” where investors chose risk management over risky business.
To help adjust to and even prosper in this “reset” economy, Jeff Carbone, partner of Cornerstone Financial Partners, recommends the following:
1.