Honest question about financial situations

[Angelhalo]

Connecticut has never been known for its "low cost of living". If you have access to a Costco, you may find that the savings is well worth it. I can buy a two pound bag of salad mix there for $2.79. We also planted our own tomatoes and will have those this summer.

I ALREADY shop at Sam's. Just bought salad mix there yesterday for $3.99. I bought a pack of paper plates at the grocery store yesterday and there were NO packs for under $3.50. Even the little flimsy ones. Why is it so hard for you to believe that prices aren't the same everywhere? No one's prices can be higher than CT's? I live where its hot as all getout. Tried growing tomatoes back a few months ago, they fried up in the sun along with my basil, cilantro, peppers, chives, etc.

The prices of simple everyday items are getting out of hand in many areas. Mine being one of them, even at the wholesale stores.

 

[SandraVB79]

I know message boards aren't good windows on society, that's why I ask questions like these, because I want to know.

It's just rather hard to imagine, poverty and people struggling from pay check to pay check, so that's why I ask exactly how bad it is, and what is meant with poverty (it will certainly not be the same as poverty in some 3rd world countries where people are literally dieing (sp?) ) (and I know that doesn't make the situation any less bad for those in the US who struggle) (weew, one has to think of many "disclaimers" when you post )

 

[RadioNate]

I know television isn't the best source to compare, but you know, it's about the only thing we say about the US
And it's not Dallas nor the Cosby Show, we watch the Young and the Restless, The Bold and the Beautiful, Ghost Whisperer, Shark, lifetime movies, ...

Well the soaps are WAY off base. Seriously.

We aren't struggling but we are noticing a difference. For us the big issue is housing. The house 2 doors down has been for sale for nearly 18 months. I've never seen anyone even look at it.

My DH's job right now went from stable to very questionable in a matter of 60 days and while his company has another job for him we aren't even sure it is in this country let alone the same city.

My neighbors are starting to struggle. He works in the Orlando service industry and if people don't come he doesn't work. He weekly paychecks have been varying so much they are having a hard time planning.

We are white collar America, college degrees, 6 figure salaries, emergency savings, investments and we are all starting to notice a difference.

I grew up in a very working class area. My parents were teachers so they made a good steady living but most of the people around us worked in the mills or other blue collar jobs. They struggled then and are struggling more now.

 

[ChrizJen]

OMG ChrizJen the picture in your signature almost made me spit all over my screen!!!!


ok back to your regularly scheduled topic

 

[my*jck*luv]

We really haven't seen it yet, although, I'm sure we will eventually. Just last week I saw a number of delivery trucks in my neighborhood delivering furniture, appliances, I've seen all the landscapers coming out as usual. When I go to the mall or out to eat, there is always a crowd. We live in a normal middle class neighborhood. Then again, dh is only 16 miles to work one way and everything we need is very close. Our grocery bill has gone up slightly.

I'm not too sure what the Eurpoeans make compared to what they spend but when we lived in Germany, I know they paid 16% tax on everything (it was included in the cost of things), they were taxed on every room in the house to include closets (our apartment had no closets), they get taxed on their animals, taxed on the # of T.V.'s in their home, taxed on whatever they sold (like a yard sale) so they had "junkin'" days where they would put their old stuff on the side of the road. Gas when we were there came out to about $5-6 a gallon and some Americans would sell gas to the Germans because we were only paying about $1.55 a gallon when I was there 1998-2001 (dh is military). Then again, the dollar was decent back then. I would be curious about your salaries compared to cost of living in Europe.

 

[TomLovesBecky]

A lot of people live outside their means, in fact I think most Americans don't even know what it is to live within their means, I mean really knowing what is a luxury and what is a necessity. I have a friend who said to me with a straight face how they were only paying for necessities but to her necessities includes a $300K house and two brand new SUVs and designer clothes for her daughter, she totally doesn't get it that they could buy a smaller house (all they need for 3 people) and drive older/more affordable cars that use less gas and try thrift stores or trading with friends to get nice clothes but not pay high prices. She really and truly believes with all her heart that they are only buying basic necessities and doesn't understand why I stare at her with my mouth open while she's saying this, it's crazy! They barely afford this stuff on two salaries, she never sees her kid and she is sad about that but doesn't understand she created that problem herself, now I know some people don't make enough money to buy true necessities but she is not one of those, they both make good money. In my opinion Americans are spoiled to a certain extent and are used to things people in other parts of the world would never dream of having, plus we think we can't live without it and complain when things go up in price. You won't hear me complain because honestly if I can't afford it I don't buy it, I won't complain about not being able to drive as much because there are kids starving to death every day and I thank God I can feed my children every day and don't have to see them suffer like that. Count your blessings is my motto and I wish people would get some perspective on what it is to truly be hurting. That is just my opinion and sorry to those who are really struggling but I think some are struggling and the rest are whining about extras.

 

[sraiford]

Wonder if this economy will affect the birth of the next Duggar baby.

What number are they up to now!

 

[DawnCt1]

I ALREADY shop at Sam's. Just bought salad mix there yesterday for $3.99. I bought a pack of paper plates at the grocery store yesterday and there were NO packs for under $3.50. Even the little flimsy ones. Why is it so hard for you to believe that prices aren't the same everywhere? No one's prices can be higher than CT's? I live where its hot as all getout. Tried growing tomatoes back a few months ago, they fried up in the sun along with my basil, cilantro, peppers, chives, etc.

The prices of simple everyday items are getting out of hand in many areas. Mine being one of them, even at the wholesale stores.

I am sure that there are places where the prices are higher than in Ct's, but I do want to assure you, that we aren't at the low end for the cost of living. Two weeks ago, firm paper plates, Stop and Shop brand were 2 packages for $4. This week at Price Chopper, 5 12 pks of Coke products for $10. Boneless pork loin, $1.99. Grapes, 98 cents per pound, haddock fillets, $.5.99, Sea Scallops, $8.99. I haven't noticed a difference in grocery prices for the things we use in our area. The restaurants are just as crowded as ever.

 

[EthansMom]

DH and I live in what is considered an "affluent" area of the NE.... most folks own (pay mortgages) their homes in our town, a high percentage of families have the Moms staying at home with the kids (not working outside the home), most families are able to go on vacations at least annually, etc...

While we live well, many people here commute long distances to get to work (an hour each way to commute to Manhattan each day, for instance) and we have very little in the way of public transportation. Except in large metropolitan areas, the U.S. really hasn't invested in public transportation... car ownership is virtually a necessity. In order to afford a nice, safe house, many, many middle-class and upper-middle-class folks now live far from their jobs. A quick 30%+ rise in gasoline prices has hit those folks hard.

The gasoline price increases have also resulted in higher shipping prices and manufacturing costs, raising prices of commodities like groceries and home goods drastically.

These costs can't all be passed onto consumers, which means that many companies are laying off workers in an attempt to reduce their expenses.

We're also having a meltdown in our housing. We had way too many lenders granting credit to folks who weren't good credit risks and approving people for mortgages that they couldn't possibly afford in the long term (variable interest rate mortgages that start out at very low teaser rates). Unfortunately, as those mortgages go through foreclosure, housing values are falling for all of their neighbors who have done nothing wrong.

Even if you had a house that you could easily afford, if you had a variable interest rate mortgage, your rates have likely reset to higher rates, increasing your monthly mortgage expenses... and at exactly the same time as your gas, groceries, oil, etc.. have increased in price.

The perception is that the U.S. is "rich" and I would agree that there is more opportunity here than other places in the world. However, much of the consumption in the U.S., in recent years (say the last 20-25), has been financed with mortgages, home equity loans, credit cards, etc.... The vast majority of people here in the U.S. haven't paid for their cars, houses, Ipods, big screen t.v.s, etc...

Are DH and I personally doing badly in the current economy? No. But we're pretty frugal and have some wiggle room in our budget. We have had to rearrange our finances to pay more for groceries, oil heat, gasoline, etc... let's say an extra $300-$400 a month on average compared to last year. For us $300-400 each month is less money we have to put away for retirement or college savings. But many families in the U.S. will have to make much more difficult decisions... whether to pay for groceries or heat the house, for instance.

 

[Angelhalo]

I am sure that there are places where the prices are higher than in Ct's, but I do want to assure you, that we aren't at the low end for the cost of living. Two weeks ago, firm paper plates, Stop and Shop brand were 2 packages for $4. This week at Price Chopper, 5 12 pks of Coke products for $10. Boneless pork loin, $1.99. Grapes, 98 cents per pound, haddock fillets, $.5.99, Sea Scallops, $8.99. I haven't noticed a difference in grocery prices for the things we use in our area. The restaurants are just as crowded as ever.

That's fine. I understand that prices are the same for you, but I just find it condescending that you waltz in here and tell people to just "look harder" for better deals. For some of us in our areas, that is not an option. And I have friends and family in CT so I understand what their cost of living is like. It's not cheap. I know this. Our grapes this weekend were $1.29 per pound. If things haven't changed much in your area, it is nice to hear because people want to know what its like everywhere, but its not cool to tell people to just search harder when you don't know what their situation is. Maybe there is nowhere else to look where they are, or maybe they only make $7.50 an hour and all the searching in the world isn't going to help them get that fabulas Prime rib dinner that they STILL can't afford even at $10.95 per person.

 

[Mkaz]

I know message boards aren't good windows on society, that's why I ask questions like these, because I want to know.

It's just rather hard to imagine, poverty and people struggling from pay check to pay check, so that's why I ask exactly how bad it is, and what is meant with poverty (it will certainly not be the same as poverty in some 3rd world countries where people are literally dieing (sp?) ) (and I know that doesn't make the situation any less bad for those in the US who struggle) (weew, one has to think of many "disclaimers" when you post )

There's no harm in asking.

Dh used to be a property manager for a summer camp. They hired people from all over the world. Many of them found it hard to believe that many Americans struggled. To them, everything seemed dirt cheap.

It is by no means similar to a 3rd world country. However, there are still cases of children going to bed hungry.

 

[SandraVB79]

We really haven't seen it yet, although, I'm sure we will eventually. Just last week I saw a number of delivery trucks in my neighborhood delivering furniture, appliances, I've seen all the landscapers coming out as usual. When I go to the mall or out to eat, there is always a crowd. We live in a normal middle class neighborhood. Then again, dh is only 16 miles to work one way and everything we need is very close. Our grocery bill has gone up slightly.

I'm not too sure what the Eurpoeans make compared to what they spend but when we lived in Germany, I know they paid 16% tax on everything (it was included in the cost of things), they were taxed on every room in the house to include closets (our apartment had no closets), they get taxed on their animals, taxed on the # of T.V.'s in their home, taxed on whatever they sold (like a yard sale) so they had "junkin'" days where they would put their old stuff on the side of the road. Gas when we were there came out to about $5-6 a gallon and some Americans would sell gas to the Germans because we were only paying about $1.55 a gallon when I was there 1998-2001 (dh is military). Then again, the dollar was decent back then. I would be curious about your salaries compared to cost of living in Europe.

I can give you some figures based on my personal situation.
I bring home about 1700 euro net a month. My mortgage costs me 571 eur a month (for the next 24 years and 11 months! ), and this is after paying half the appartment in cash (total cost was about 220 000 eur, I have a mortgage of 100 000 eur, and my parents lend me intrest-free money). Every month, I also pay about 100 eur for things like elevator, lighting in the hallways, electric garage door, ...

Diesel costs 9 usd a gallon.
- Going to the movies is about 8 eur (btw, 1 eur is 1.54 usd)
- a 12 pack of Coca Cola cans of 33 cl (about 11 oz) is 5,87 eur.
- 500 g (little more than 1 pound) of pasta is 1.29 eur
- chicken breasts are 10.50 eur per kg (1 kg is some more than 2 pounds)

sales tax is 21%, but included in the prices, income tax for me is about 50%.

I must say that I am in one of the better paying jobs. Most "average" jobs (like people working in grocery stores, desk jobs where you don't need specific degrees, ...) make about 1000 eur a month.
When I grew up, my mom was a SAHM, my dad brought home about 2500 eur, and we were 5.
6-figure incomes are only for the CEOs of the big companies, not too many people make such salaries around here!


In/ around Brussels, the price for a one-bedroom appartment (when you buy it in a decent neighbourhood) is about 180-200 000 eur. A house in/ around Brussels, with 3 bedrooms, runs around 350 000 eur.
Renting a 2-bedroom appartment in my neighbourhood costs you about 800-900 eur a month + charges (sometimes up to 275 eur a month!) for community things like elevator etc.

 

[DawnCt1]

That's fine. I understand that prices are the same for you, but I just find it condescending that you waltz in here and tell people to just "look harder" for better deals. For some of us in our areas, that is not an option. And I have friends and family in CT so I understand what their cost of living is like. It's not cheap. I know this. Our grapes this weekend were $1.29 per pound. If things haven't changed much in your area, it is nice to hear because people want to know what its like everywhere, but its not cool to tell people to just search harder when you don't know what their situation is. Maybe there is nowhere else to look where they are, or maybe they only make $7.50 an hour and all the searching in the world isn't going to help them get that fabulas Prime rib dinner that they STILL can't afford even at $10.95 per person.

I don't recall telling you to just "look harder". I shared my experience which includes shopping at Costco. You have your experience, I have mine. My experience is as valid as yours. I don't feel that I have to apologize for dining out because not everyone can afford it. In fact, I will probably look for a good fried clam dinner in the near future. Maybe tonight!

 

[Angelhalo]

I don't recall telling you to just "look harder". I shared my experience which includes shopping at Costco. You have your experience, I have mine. My experience is as valid as yours. I don't feel that I have to apologize for dining out because not everyone can afford it. In fact, I will probably look for a good fried clam dinner in the near future. Maybe tonight!

In your first post in the thread you finished your post by telling people to look for better deals. My reply is that for some people, A) they don't exist anymore and B) a slightly better deal isn't going to help when the price of milk has risen from $2.00 a gallon to $4.00. Finding for $3.75 isn't going to fix their finances.

I don't recall ever asking you to feel bad about anything Dawn..........

 

[tlens]

I'm Canadian. We've been relatively insulated from the spikes in groceries etc. Gas has risen alot so that hurts but I haven't changed my driving habits. I have to get where I have to get.

Our dollar is strong so that helps. The strong dollar has allowed us to upgrade our normal moderate accomodations and take a cruise this year. One year we went to disney we paid .60 on the dollar. OUCH.

That being said, my husband and I both have a secure jobs and don't worry about loss of employment in any way.

 

[tlens]

I can give you some figures based on my personal situation.
I bring home about 1700 euro net a month. My mortgage costs me 571 eur a month (for the next 24 years and 11 months! ), and this is after paying half the appartment in cash (total cost was about 220 000 eur, I have a mortgage of 100 000 eur, and my parents lend me intrest-free money). Every month, I also pay about 100 eur for things like elevator, lighting in the hallways, electric garage door, ...

Diesel costs 9 usd a gallon.
- Going to the movies is about 8 eur (btw, 1 eur is 1.54 usd)
- a 12 pack of Coca Cola cans of 33 cl (about 11 oz) is 5,87 eur.
- 500 g (little more than 1 pound) of pasta is 1.29 eur
- chicken breasts are 10.50 eur per kg (1 kg is some more than 2 pounds)

sales tax is 21%, but included in the prices, income tax for me is about 50%.

I must say that I am in one of the better paying jobs. Most "average" jobs (like people working in grocery stores, desk jobs where you don't need specific degrees, ...) make about 1000 eur a month.
When I grew up, my mom was a SAHM, my dad brought home about 2500 eur, and we were 5.
6-figure incomes are only for the CEOs of the big companies, not too many people make such salaries around here!


In/ around Brussels, the price for a one-bedroom appartment (when you buy it in a decent neighbourhood) is about 180-200 000 eur. A house in/ around Brussels, with 3 bedrooms, runs around 350 000 eur.
Renting a 2-bedroom appartment in my neighbourhood costs you about 800-900 eur a month + charges (sometimes up to 275 eur a month!) for community things like elevator etc.

Ouch. Cost of living is not anywhere as high in Canada.

 

[akhenaten]

We're also having a meltdown in our housing. We had way too many lenders granting credit to folks who weren't good credit risks and approving people for mortgages that they couldn't possibly afford in the long term (variable interest rate mortgages that start out at very low teaser rates). Unfortunately, as those mortgages go through foreclosure, housing values are falling for all of their neighbors who have done nothing wrong.

very true....but the way I see it the housing values HAVE to fall...because they were artifically inflated by the lenders granting credit to the folks who could not actually afford it!!!!
My Dh and used to joke about the people getting their money illegally..when the housing prices were skyrocketing...we could not understand how folks could afford those prices....now we know ... they couldn't ...it was criminal to lend the way the banks/mortgage ***. did...it ruined our economy....

To the OP..... There is now and has always been a wide range of experiences and lifestyles in the USA. Some are hurting ,some changing habits and some not affected at all.....
The best answer I saw referenced the perfect storm ...how all of the increases are occuring at the same time....so it is the rapid rise that makes it worse.

 

[my*jck*luv]

I can give you some figures based on my personal situation.
I bring home about 1700 euro net a month. My mortgage costs me 571 eur a month (for the next 24 years and 11 months! ), and this is after paying half the appartment in cash (total cost was about 220 000 eur, I have a mortgage of 100 000 eur, and my parents lend me intrest-free money). Every month, I also pay about 100 eur for things like elevator, lighting in the hallways, electric garage door, ...

Diesel costs 9 usd a gallon.
- Going to the movies is about 8 eur (btw, 1 eur is 1.54 usd)
- a 12 pack of Coca Cola cans of 33 cl (about 11 oz) is 5,87 eur.
- 500 g (little more than 1 pound) of pasta is 1.29 eur
- chicken breasts are 10.50 eur per kg (1 kg is some more than 2 pounds)

sales tax is 21%, but included in the prices, income tax for me is about 50%.

I must say that I am in one of the better paying jobs. Most "average" jobs (like people working in grocery stores, desk jobs where you don't need specific degrees, ...) make about 1000 eur a month.
When I grew up, my mom was a SAHM, my dad brought home about 2500 eur, and we were 5.
6-figure incomes are only for the CEOs of the big companies, not too many people make such salaries around here!


In/ around Brussels, the price for a one-bedroom appartment (when you buy it in a decent neighbourhood) is about 180-200 000 eur. A house in/ around Brussels, with 3 bedrooms, runs around 350 000 eur.
Renting a 2-bedroom appartment in my neighbourhood costs you about 800-900 eur a month + charges (sometimes up to 275 eur a month!) for community things like elevator etc.

I know that your energy bills are sky high too (compared to ours). When we moved to Germany and found out what the normal electric bill was,my mouth about dropped to the floor. I couldn't believe the prices you guys pay over there compared to what we do over here. Thankfully our housing and utilities were paid by the Army!!!!! I can understand why you see us having lots of money! Our electric bill for a 3 bedroom 2 bath home has always been about $160-170 a month. We keep the AC set at 73 during the summer and the heat set at 72 during the winter. I have not seen a change at all in the past 5 years we lived here. Living in both the states and Europe, I can tell you, we still have it pretty good over here so I def. see where you're coming from

 

[U2_rocks!]

I was just complaining to Dh the other day that I don't understand why we can barely make ends meet! We make good salaries, we live in a fairly basic 3 bedroom 2 bathroom house with no pool or anything (but it's in an expensive area), we don't own or maintain any vehicles (we drive totally-maintained company cars, including all gas paid for!!). We have 3 growing kids, so our food bill is getting high, but we don't eat out a lot, except that I often buy lunch at work - but I stick to economical meals for the most part. We live simply - that means we spend hardle any money on "toys" (for the kids or for us). We have old appliances, I buy less than 10 new pieces of clothing a year for myself (and not expensive designer stuff), I buy the kids clothes from Target when I travel for work, or Woolworth (a discount department store). These are just examples to show that we do not live an expensive lifestyle with new stuff all the time - far from it, in fact.

We do have 3 kids at private school, and while the fees aren't terribly high, they are high enough to make things tough now that our mortgage interest has been jacked up! Refinancing is usually an option, but right now no-one's offering great rates, and there are legal fees to pay here when you refinance.

We are looking at changes, and we can't figure out how to make a significant one without uprooting the kids or moving away from our neighborhood (which is right next door to my parents and my brother, and therefore very handy for many reasons!). We are doing a lot more comparison shopping for food than we did before, which will help a little. But things will still be tight. I don't see a vacation on the horizon for quite a while. We are lucky that we get to use my parents' timeshare at a resort on the other side of the island for one week in July every year - that's the only family vacation we can afford, because it's free! Because we live on an island, so we can't go anywhere without paying 5 sets of airfare, which is so far from affordable it isn't funny!

Sigh. I am certainly feeling the crunch. We are still not "poor" - we have just gotten used to living in a certain area and having our kids go to the same school that our friends' kids go to, and now we can't really afford that. We still see many of our friends taking vacations, eating our, having weekend getaways, driving SUVs that they own and maintain, and we wonder how they do it! Their kids are at private school too! We make good money - I just don't know where it goes.

 

[CF'er]

I live in a small city where gas prices are higher than the surrounding metro area (4.03/gal yesterday down from 4.07). I'd be spending the savings driving to and from. My grocery options are WalMart/Kroger and 2 other small chain stores. No Sam's, BJ's or Costco.

Milk: 3.83 or 3.53 (Walmart)
grapes: 1.38/lb
Coke: 4 12pks for $11 (don't buy this anyway. Kids drink water or kool-aid)
paper plates: 100ct packs store brand $2.07 (don't buy)

This is just what I pulled out of this weeks ad. We are down my salary due to health reasons and we are hurting. Hubby works a 2nd job when hours are available which now isn't much.