Oil and gas prices have affected all Americans, but they have affected some more than others. According to Roper Consulting [PDF],* less affluent consumers, those living in rural areas and parents with children under the age of 18 living at home say that they are "hurt a lot" by high gas prices. This report goes on to say that these individuals are putting off large purchases, such as a new automobile, because of the economy. But, 'better-heeled' consumers also are delaying large purchases because of current stress over economic conditions.

Large purchases aside, Americans still are spending. But, the purchases are on smaller items and services considered "necessary." If you follow the Roper report, you'll discover more about how Americans spend their discretionary income during hard times. This report, also, might lend new clues on how to invest your income over the upcoming months, and you might learn that you won't be alone as you invest some of your income now.

According to this report, Americans will not cut back on cable or satellite television, nor will they cut back on phone expenses. After these two "gotta-haves," Americans surveyed for this report will not cut back on their investment and savings strategies. This is good news, despite the fact that many individuals surveyed have experienced a decline in their investments.

And, although the Batman movie, "The Dark Knight," made box office history this past month, fewer Americans plan to attend movies this year. Instead, a full half of the individuals surveyed stated that they will invest in an HD or flat-panel TV in 2008, no matter if gas prices are hurting them or not. Plus, one out of five of those surveyed stated that they would buy a Blu-Ray or HD_DVD player. Additionally, video game sales were up a full 31 percent in April.

If you parlay this information into the fact that the electronics sector is projected to slow this year, you may be encouraged to realize that this sector also is projected to maintain a +6.1 percent status. Stay-at-home entertainment (which includes musical activities) for families and friends may be the solid foundation behind this healthy status.

Electronics and home entertainment aside, Americans are not willing to sacrifice vacations despite the economy. But, a full third of those who will travel more than 100 miles from home are planning to spend less. You might ask how less spending could be possible when prices are rising across the board - but it can be done. One hundred miles isn't that far, really, so families are planning to head to Disneyland rather than to Europe. They are seeking hotels and timeshares with kitchenettes rather than eating out and they are seeking 'simple pleasures' rather than extravagant thrills.

If you want to tighten your belt further while traveling, then try these tips for tax deductions:

1. Line up interviews in the area of your vacation destination before you travel. Make sure that those interviews are within your present trade or business.
   
   
2. Take a vacation at a convention, where activities for family members can be just as numerous as those for convention attendees. Travel expenses for conventions are deductible if you can show that your attendance benefits your trade or business.
   
   
3. Convince your current employer that you can work just as well from a distant location for a short period of time as you can in your office cubicle. This tactic may be the beginning of a lovely telecommuting phase for your position, where you can work at home a few days a week and save on gas and wear and tear on your car, office outfits and cubicle.

Finally, lighten up. According to the Roper report, global confidence has fallen only one percent since last year. In other words, 61 percent of those surveyed felt that they will be better off within the next twelve months, compared to 62 percent the previous year (which was the highest number since 2000). While this may not be encouraging for you (what people believe and what may really happen, are - after all - two different things...), you might read deeper into this report to realize that those who worry about debt are no better off than those who aren't worried and who take risks with their investment strategies.

My advice? Stay home when possible, enjoy your new flat-screen TV, and/or teach the kids more about personal finances (it's amazing what you'll learn in the process). Enjoy each other and save, save, save and invest, invest, invest. Although you may feel that your portfolio has become an everyday extravagance, you may thank yourself down the road for indulging in this practice.

Until Later,
Linda Goin

* GfK Roper Consulting's results were gathered from multiple surveys conducted between Dec. 2007 and June 2008 and based on a total of 20,000 interviews with consumers aged 18 and older.