It's adding up, and we're just scraping by

Like smoke from lingering forest fires, a sense of unease hangs over many North Bay residents as they stretch their dollars to cope with rising costs, shrinking paychecks and a host of economic ills.

Carpooling, carrying lunches to work and school, clipping coupons and staying home for meals and movies are helping people weather what Federal Reserve Chairman Ben Bernanke has described as "financial storms."

But nothing wipes out the worries, as consumer confidence has hit a 16-year low and Americans are more economically pessimistic than ever.

"There's always that little sense of foreboding in your mind," said Amy Stang, a Santa Rosa working mother of three. "I would hate to see the bottom fall out for our family."

In January, a power bill of nearly $400 sounded an alarm for Amy and Brian Stang, opening a year in which gasoline has soared to more than $4.50 a gallon, while food and airfare cost more and home values are falling.

The Stangs shop at Costco and, like many Americans, are foregoing restaurants to dine at home and watching DVDs instead of going to theaters.

A national marketing survey found that 53 percent of consumers are cooking more from scratch than they did six months ago. They're also shopping more at discount big-boxes and less at grocery stores.

There is scarcely any good economic news these days, with inflation bumping up, take-home pay declining, thousands losing their jobs and mortgage-credit woes threatening to undermine the banking industry.

It's made involuntary misers out of many who once felt pretty comfortable.

"I put off paying bills, buying new tires, just about everything as long as possible," said Philip Tymon of Guerneville. "I look for bargains on everything I must buy."

He hasn't driven into Santa Rosa in weeks, and rarely spends money at night on movies or cafes. Vacation travel is out for at least the rest of the year, Tymon said.

"Every penny counts at this point," said Katie Gonzalez, a working mother of three in Napa County's Pope Valley.

Looking back, the family's old habit of spending $100 on dinner and movies for five "is a bit ridiculous," Gonzalez said. Now the Gonzalezes eat at home, go for walks and swim in the creek and buy movies on DVDs.

Her job at a St. Helena Bank feels secure, while Saul Gonzalez's work as a self-employed tile contractor has dropped off. By carpooling to jobs with co-workers, he is saving $400 to $600 a month on gasoline.

"Our company truck sits in the driveway like a large, blue trophy from a not-so-distant past life," Katie Gonzalez said.

She's less confident about the future, but tries to dwell on what's right in her life. "If you think too much about the negative stuff it can drag everything down," Gonzalez said.

Consumer confidence sagged in June to 50.4, the fifth lowest mark reported by The Conference Board, and it bodes ill for the nation's economy. When confidence nosedives, it typically means "people are going to hunker down and spend less," said James Wilcox, a UC Berkeley economist.

Less spending at restaurants, auto dealers and movie theaters "ripples through the economy," ultimately triggering job layoffs that further reduce consumption, he said. Consumer spending fuels more than two-thirds of the nation's economic activity, Wilcox said.

Also in June, inflation reared up 1.1 percent, the second-highest monthly rise in 25 years. The only higher mark was in September 2005, after Hurricane Katrina shut oil refineries and energy prices spiked.

Clipping coupons affords some relief from higher prices, and last year Americans redeemed 2.6 billion manufacturers' coupons, halting a 15-year decline in redemptions. So far, 2008 returns are expected to hit the same level, said Matthew Tilley of CMS Inc., a coupon processing agent.

In good times, consumers tend to overlook coupons, he said, but "the minute the economy is in a pinch you're going to turn to coupons."

Jim Kelly of Rohnert Park, who has lived on disability payments the past two years because of a back injury, said he's become virtually a full-time bargain hunter. Saving a dollar on a gallon of milk is "a big deal to me," he said.

Kelly said he squirreled away money for four months to afford a $50 ticket to a Beach Boys concert. As prices rise for basic necessities, he said, "it feels like somebody's got a gun in my back saying 'This is a stickup.' "

Cyndee Schenk of Santa Rosa said her job at the Penngrove post office pays well, but inflation consumed her latest raise. She quit going to Starbucks and shops for clothes at Wal-Mart and Kmart instead of Macy's and Mervyns.

She babies the accelerator on her treasured 1998 Mustang, eking the gas consumption up to 22 mpg. The car packs a V-8 engine, but Schenk said she can't afford to buy a more efficient auto because the Mustang is paid for.

The economy, Schenk said, "is the worst I've ever seen it. It's very depressing."

But some families are enjoying their time spent together, walking, bicycle riding and rollerblading close to home, and taking pride in shedding expenses.

A Windsor woman said in an e-mail that she and her husband fired their landscaper and bought a lawnmower, tackling yard work themselves. "What were we thinking?" she said.

In a time of over-arching economic gloom, Katie Gonzalez focuses on the positive. "I still have my house. My kids are fine," she said. "I'm happy with that."

You can reach Staff Writer Guy Kovner at 521-5457 or guy.kovner@pressdemocrat.com.