Believe it' it is that bad. That's the reason the Federal Reserve had a half-point reduction in interest rates back in September. That drop was to avoid a recession. But a recession may still happen because they waited too long.
The economy, life, work and living is NEVER a one-size-fits-all proposition like the government and all its silly agencies want you to believe. Maybe 20 million don't have jobs but 120 million do. How can things be so bad when the government provides help for so many?
Maybe because the government subsidies, giveaways and perks aren't keeping up with inflation that the very same government is creating. Still, I am retired and not all that well off and not feeling any severe economic problems as the best thing to do is get and stay out of debt. And instead of buying the newest I-phone or whatever, save a few bucks for a rainy day.
Consumers create many of their own problems by believing the ads and hype they are constantly drenched with. I know, I have been there. Keeping up with the Jones's is beyond stupid.
Don’t disagree, but you are beyond your working years. Think about young couples and families trying to buy a house, or provide a good life for their kids. They want to give their family the same life they had. Really tough right now.
Indeed. Only thing keeping my home afloat is that we bought in the mid 2010s when things were vaguely affordable, although still overpriced. We have an 800sq ft ranch with a sub 2k mortgage (including taxes and insurance. We refinanced away the PMI in 2020 when rates dropped and values rose; once we are here through 2025, it actually breaks even on long term costs).
We have no student loans, no credit card debt, do not spend frivolously (the only"big" thing we did was a vacation to Europe last year on about 2k all in for both of us combined), don't eat out, one car is paid off, and the one with an auto loan was making more in the money I used for after tax investment income than the interest payments. We have kids, we need at least ONE reliable vehicle. We have a 200k+ annual income. Enough savings to last for up to three years (more if we raided my 401k).
And *we* find it rough. We are fine but I gag on today's prices, and it is getting much harder to save money. We do separate finances. I used to be able to pocket 1k a month savings. Now it is 300, if that. Some of that is the car payment (which I can pay off anytime in cash but again I have the money invested instead), but the majority of that drop is price increases. We actually are doing less and paying more. We cut a lot of cable costs, and next year we will switch to Roku tv and streaming.
I have NO IDEA how average homes are surviving this. We're fine but can't realistically move up to a bigger house (2 small kids in a ranch is a crowd; no idea what happens when they become teenager sized). And that keeps a starter home off that market for others. It's a vicious cycle...
Steve, thanks for your response. Hang in there, sounds like you’re doing the right things for your family! I do worry about my 3 newly married sons starting out…it’s a different world out there. 🫤
Yeah we are ok, but growing up 200k/year was upper upper middle class people money, not "just doing ok" money. My house earns *twice* what my father's did 30 years ago, yet it yields *less*. Some of that may be my parents' fiscal recklessness coloring my view, but it is frustrating to feel like you are making the "right" "responsible" decisions, yet feel stuck spinning your wheels. Better than backwards, but how was I supppsed to know to stretch for a big home in the 2010s when our household income was only about half of what it is now? Then refinance it cheap. This country seems to reward recklessness for the lucky. It's really frustrating as someone with a good financial education.
Believe it' it is that bad. That's the reason the Federal Reserve had a half-point reduction in interest rates back in September. That drop was to avoid a recession. But a recession may still happen because they waited too long.
The economy, life, work and living is NEVER a one-size-fits-all proposition like the government and all its silly agencies want you to believe. Maybe 20 million don't have jobs but 120 million do. How can things be so bad when the government provides help for so many?
Maybe because the government subsidies, giveaways and perks aren't keeping up with inflation that the very same government is creating. Still, I am retired and not all that well off and not feeling any severe economic problems as the best thing to do is get and stay out of debt. And instead of buying the newest I-phone or whatever, save a few bucks for a rainy day.
Consumers create many of their own problems by believing the ads and hype they are constantly drenched with. I know, I have been there. Keeping up with the Jones's is beyond stupid.
Don’t disagree, but you are beyond your working years. Think about young couples and families trying to buy a house, or provide a good life for their kids. They want to give their family the same life they had. Really tough right now.
Indeed. Only thing keeping my home afloat is that we bought in the mid 2010s when things were vaguely affordable, although still overpriced. We have an 800sq ft ranch with a sub 2k mortgage (including taxes and insurance. We refinanced away the PMI in 2020 when rates dropped and values rose; once we are here through 2025, it actually breaks even on long term costs).
We have no student loans, no credit card debt, do not spend frivolously (the only"big" thing we did was a vacation to Europe last year on about 2k all in for both of us combined), don't eat out, one car is paid off, and the one with an auto loan was making more in the money I used for after tax investment income than the interest payments. We have kids, we need at least ONE reliable vehicle. We have a 200k+ annual income. Enough savings to last for up to three years (more if we raided my 401k).
And *we* find it rough. We are fine but I gag on today's prices, and it is getting much harder to save money. We do separate finances. I used to be able to pocket 1k a month savings. Now it is 300, if that. Some of that is the car payment (which I can pay off anytime in cash but again I have the money invested instead), but the majority of that drop is price increases. We actually are doing less and paying more. We cut a lot of cable costs, and next year we will switch to Roku tv and streaming.
I have NO IDEA how average homes are surviving this. We're fine but can't realistically move up to a bigger house (2 small kids in a ranch is a crowd; no idea what happens when they become teenager sized). And that keeps a starter home off that market for others. It's a vicious cycle...
Steve, thanks for your response. Hang in there, sounds like you’re doing the right things for your family! I do worry about my 3 newly married sons starting out…it’s a different world out there. 🫤
Yeah we are ok, but growing up 200k/year was upper upper middle class people money, not "just doing ok" money. My house earns *twice* what my father's did 30 years ago, yet it yields *less*. Some of that may be my parents' fiscal recklessness coloring my view, but it is frustrating to feel like you are making the "right" "responsible" decisions, yet feel stuck spinning your wheels. Better than backwards, but how was I supppsed to know to stretch for a big home in the 2010s when our household income was only about half of what it is now? Then refinance it cheap. This country seems to reward recklessness for the lucky. It's really frustrating as someone with a good financial education.
Nice summary. Thanks! 🙏