Luxury or necessity, it's time to decide
9:00AM Monday October 15, 2007
By Diana Clement

"Housing price slide could kill wealth effect" - the headline in the Herald this week said it all.

Economists are worried that sales of cars, electronics, furniture and appliances could suffer next year from the housing sector downturn and finance company collapses.

It may be bad for the economy as a whole. But when it comes to individuals and their own personal finances, weaning themselves off consumer goods and the expensive finance "deals" makes a lot of sense.

I recently read the average Kiwi is three weeks from bankruptcy if they lose their job. That's probably an exaggeration, because most people could sell household goods, cars, and other toys to make ends meet for a short while or perhaps borrow from friends or family. But it's food for thought.

More here .