Honest question about financial situations

[tlens]

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

That's high too. Wow. Last month electricty and water together was $134.50 for me. That's a 5 bedroom, 4 bath home. We have the air set at 21 deg. C (70 deg. F). Gas last month for us was $46.00.

 

[Kathi OD]

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.

This is more common than many Americans are willing to admit. My own grown child and his wife are prime examples. She is a SAHM to 2 (adorable, if I do say so myself). He makes a good salary, but they waste their money and then are always complaining about not being able to afford things. There is always ice cream in the freezer and soda in the refrigerator (it certainly wasn't like this as he was growing up). Neither would ever consider buying an "off-brand" chip or cookie, only name brands are good enough for them. It's a necessity that she get her nails done every other week. He has to go to the car races every other week. Why DGD (1.5yo) needs REAL Crocs and Nikes is beyond me. They own two cars, when he has a company car that he can bring home every night. That's insurance & maintenance on a vehicle that they really don't need.

Yet they are complaining about how bad things are and how they couldn't afford to go on vacation to the shore (BTW...the accommodations were free). Well if they watched what they spent the rest of the year, they would have been able to afford the gas to drive to the shore and enjoy a week at the beach.

I know this isn't everyone, but IMO it's more common than not. If the majority of Americans altered their ideas of what is necessary as opposed to what is a luxury, there would be much less gnashing of teeth over the rising cost of gasoline because there would be more leeway in the budget to cover it.

 

[CathrynRose]

We make good money - I just don't know where it goes.

I could'a wrote your post.

I think we're all feeling it. A little extra here and there and here and there, adds up.

 

[my*jck*luv]

That's high too. Wow. Last month electricty and water together was $134.50 for me. That's a 5 bedroom, 4 bath home. We have the air set at 21 deg. C (70 deg. F). Gas last month for us was $46.00.

That's pretty good for a 5 bdrm 4 bath! We don't use gas for our home so all we have is the electric bill.

I'd like to get an idea of what other people pay for their utilities. Our water/sewer/trash bill is normally $55 a month, we all take atleast 1 shower/bath a day (I take 2 a day), I wash a load of laundry once a day,run the dishwasher everyday, put extra water in the pool once a week (it evaporates about an inch or 2 w/ the heat) Our trash service runs twice a week. I couldn't tell ya how many times we flush the toilet though

 

[eliza61]

I do think it's hitting everyone except the very wealthy. It's very simple math when you only have so much money every month and then fuel starts doubling in price, you're going to have to make up that difference some where.
The problem with this situation, is that if my gas was the only thing that went up I could adjust but remember rise in fuel affects every thing.
Food
Travel
recreation
Every facet of your life is affected.

 

[cheerful chickadee]

Speaking for my family...yes it has affected us. The price of everything has gone up and as a family only bringing in one income -- it's tough to just get by. My DH works on commission and his company has found more and more ways to reduce commission --if you call in sick (even if you have sick days to use and it's a rare occasion) you go to 4% commission for the month instead of the standard 6%, it means anywhere from $200- $400 less per month for us. You can't help getting sick once in a while, geesh! Last month my DH had a doozy of a cold and called in sick, we're paying for it this month, he's taken in $340 less than usual. It's hard to budget when these things happen. He's looking for a new job but we really can't risk losing his health insurance either

I've looked into part time jobs but then I would need to pay for childcare for my DD and I'd end up just breaking even when you calculate in gas to get to work, childcare, etc. We've had to cut out many things to make sure we have enough money for food, gas, mine and my DD's medications, school clothes for my older DS, etc. We've cut down to one car because gas for both was too much.

I also get kind of irked when I hear comparisons of gas prices to other countries, the price of gas has gone up ginormously in a short period of time, no one could prepare for the rise of gas and the subsequent rise in cost of everything that followed especially when your income isn't increasing. On the View they said in 2000 gas was $1.59 per gallon avg. it makes me sick to think we've just about tripled that. Gas is now $4.25 per gallon here and rising. Also where we live you have to drive everywhere, there's not as much public transpo outside of the metro city area and things are too far to walk (who has the time to walk 2 hours back and forth to the grocery store?)

 

[eliza61]

able to afford things. There is always ice cream in the freezer and soda in the refrigerator (it certainly wasn't like this as he was growing up). Neither would ever consider buying an "off-brand" chip or cookie, only name brands are good enough for them. It's a necessity that she get her nails done every other week. Yet they are complaining about how bad things are and how they couldn't afford to go on vacation to the shore (BTW...the accommodations were free). Well if they watched what they spent the rest of the year, they would have been able to afford the gas to drive to the shore and enjoy a week at the beach.

I know this isn't everyone, but IMO it's more common than not. If the majority of Americans altered their ideas of what is necessary as opposed to what is a luxury, there would be much less gnashing of teeth over the rising cost of gasoline because there would be more leeway in the budget to cover it.

I guess I'm a common America then. IMO a ice cream cone or soda in the refrigerator is not a luxury. If all I do day after day is have basic bread and water that's not living thats simply exsisting. Yes, if I work every day I would like a vacation, occasionally I would like to be able to buy my kids a freakin' pizza and while I may not need a 3000 sq foot home, I would like to live in a decent neighborhood where my kids don't have to dodge gunfire to get to school and that requires money.

 

[tlens]

You have a pool? That's probably why your electricity is higher (unless you heat by solar panels). My electricty/water is one bill. My electricity itself is $80.00, water would be $55.00.

 

[vegasnative]

My cousins recently went to Vegas for a week's vacation, they live in England. They basically asked the same thing OP is asking. They said they found things "very cheap" and can't believe that us Americans are complaing about gas being $4 a gallon when they are paying about $9. This made me think about 2 things. Well, perhaps our tourism areas won't hurt so bad this summer after all, I can see many Europeans coming over and spending and having a good time.

But, it also made me think that we (as a country) do not have the same money habits as them. Someone else mentioned that many Americans do not save anything and never have. Our country is in such credit card debt (and other debt) that we are trying tp pay back those loans while racking up more to now buy gas. It's a totally different situation than what many foreigners are facing. To put it plain and simple, they have been smart, we have not. They live below their means, us Americans (in general) live well beyond our means. They buy things when they can afford to pay cash for them, we buy everything now! These mistakes on our part is affecting us.

 

[lemondog]

I think people are starting to question their "extras" -- vacations, eating out every week, deluxe cable plans -- but not truly hurting in the sense we think of it. We can still pay our bills, clothe our kids, put food on the table, etc. But I have made a concious effort to cut down on all my running around...I try to be more efficient with my time. I also try and opt for free activities for the kids and I this summer -- zoo (we have a membership), library, swimming, etc. rather than constantly doing things that cost us $10 here, $5 there, etc. Another thing I have started doing is spreading my grocery shopping between 2 stores and shopping the sale flyers. I am saving bout $30/week doing that. Every little bit helps!

 

[MrsPete]

What we are seeing in the United States is kind of a Perfect Storm

Tightened Credit Standards, Lower Lines of Credit
YEARS of 0 to Negative Savings Rates
High Core inflation of Food and Gas
A HUGE dependency on Oil, little to no Public Transportation in many areas of the country...
Unemployment rates are actually pretty low, but Salaries are stagnant. (ie wages are not keeping pace with inflation)


So, you have a whole bunch of people that can't afford the stuff they are used to buying and have no Savings -- and now they have more limited access to Credit.

darn, now I'm all depressed

I think you've hit the nail on the head. Our problem here in the US is multi-fauceted. We -- general we, no one in particular -- have been living a lifestyle that was bound to come to an end. Maxed out credit cards, no savings, home equity loans, student loans, etc. -- it was bound to self-destruct at some point. Gas prices (which also raised the prices of many other things) and housing in many areas of the country have come together to form the straw that broke the camel's back.

On the other hand, we don't seem to be learning from our mistakes. Roads are still crowded, restaurants and stores are still full. People are still spending. I think that means people aren't quite at the end of their credit limits.

 

[MrsPete]

Please don't take this offensively, but I really hurts when people who live in other countries try to compare the overall cost of American gas by saying "We pay $9-$10 a gallon in American money for our gas already and do fine, why are you having a problem with gas half that much"?.

Yep, I agree. While there's a hint of truth in it, the reality is that our situations are not alike:

As you said, it's not JUST the cost -- it's also the fast increase.

The countries with really, really expensive gas also have options: public transportation, bicycle lanes, large scooter industries. We as a society haven't pursued these options (though I suspect we will in the future), and as a result, it's pretty tough for an individual to go against the grain of society. We're a country built for cars -- that's hurting us now. Our size is also working against us; we're essentially a continent, and we have states larger than many European countries. It makes a difference in transportation.

 

[vegasnative]

I was just really wondering about it. To us, the US is still the country where everybody is rich and happy; this is what we see on television/ movies/ ... Heck, take your average Lifetime movie, they are always living in HUGE houses, etc etc etc.

Yes, and that is what we are taught...bigger and more $$, spend, spend, spend. Although what we have not been taught is more items (such as bigger houses, more expenxive cars) does not mean there will be more happiness.

I saw a TV show on HGTV it was in Canada about a young couple buying their first home. The girl wanted the bigger house (it was more money), he wanted the smaller house because it cost less. He told her that more house doesn't mean more happiness. That struck a cord with me.

Also, we recenlty moved from Las Vegas to Spokane, Washington. I see a huge difference from the 2 cities. I'm not going to blast Vegas because I LOVE it, I was born and raised there, and it is my most favorite town (of course), but...... It is a very materialistic town. We have gone from a place where everyone (and I do mean everyone) drives brand new cars. The moms drive brand new SUV's, they shop every day, they live in those houses you see on TV, it is a place where money seems to grow on trees and as you said everyone is rich. It is not the case though. Yes, everyone there does drive those fancy cars and live in those houses but they are far from rich, they are sitting in so much debt it's insane.

Ok, moving to Spokane, I'm lucky if I see a BMW in a week. In Vegas you see 10 in one intersection, the other cars are Porsches, and Lotus'. Ok, (slight crack there) in Spokane people certainly live below their means. They drive what they can afford to buy, they live in very modest houses. It is not a materialistic place at all. However, when you now compare the 2 places, Vegas' housing market is in the toilet, there are foreclosures galore, one on every street and people are just up and walking away from their McMansions and boats leaving a trail of debt and devastation. Here, in Spokane, the housing market is still slightly increasing, people are still going camping and boating because they have paid for these items cash, and have the reserves to do such little luxuries.

So, I can see why some people in AMerica are not feeling the pinch as much as others are. Some have been living below their means and saving and not racking up the debt, others have been trying to keep up with the Jones' and are virtually homeless now because of it.

 

[MrsPete]

My family has always spent this way at Christmas though it's usually about $500 per person. But, the thing is that we NEVER got anything the rest of the year. No new clothes, no new shoes, no toys, no tv's, no bikes, no jewelry, no NUTHIN. The ONLY time you got new stuff was at Christmas so you'd have a HUGE pile of stuff on Christmas morning. We just really liked it that way and it balanced out because we weren't spending the money during the rest of the year.

You're describing my family. I DON'T spend during the rest of the year because I want my girls to learn to save and spend their own money.

 

[PghLybrt]

I think as Americans we like our "stuff". As some other posters have said we have a very skewed idea of what necessity means. In college I attended with a boy form Appalachia. He was thrilled that the dorm had indoor plumbing while the rest of us complained that only one lounge had a TV. Now (only 10 years later) kids go to school with "necessities", computers, ipod, microwaves, refrigerators. We have a house full of them like cable, internet access, cell phones. We feel that a toy at the dollar store every time we go is no big deal, or getting that cup of coffee everyday at the gas station or star bucks does not really matter. It all adds up! So when other prices go up many of us complain instead of really doing something about it.


Yes I understand that it is hard for many. I send my SIL money monthly and pay for the boys schooling. She works very hard and it is hitting her very hard. She does with out the satellite radio, cable, cell phone ect. So I do understand. However I do really think we have different ideas of necessity in this country. Ice cream in the freezer, luxury.


I work in an industry that is all luxury. We have watched our sales skyrocket this summer. So who know how bad it really is…..

 

[disykat]

This is more common than many Americans are willing to admit. My own grown child and his wife are prime examples. She is a SAHM to 2 (adorable, if I do say so myself). He makes a good salary, but they waste their money and then are always complaining about not being able to afford things. There is always ice cream in the freezer and soda in the refrigerator (it certainly wasn't like this as he was growing up). Neither would ever consider buying an "off-brand" chip or cookie, only name brands are good enough for them. It's a necessity that she get her nails done every other week. He has to go to the car races every other week. Why DGD (1.5yo) needs REAL Crocs and Nikes is beyond me. They own two cars, when he has a company car that he can bring home every night. That's insurance & maintenance on a vehicle that they really don't need.

Yet they are complaining about how bad things are and how they couldn't afford to go on vacation to the shore (BTW...the accommodations were free). Well if they watched what they spent the rest of the year, they would have been able to afford the gas to drive to the shore and enjoy a week at the beach.

I know this isn't everyone, but IMO it's more common than not. If the majority of Americans altered their ideas of what is necessary as opposed to what is a luxury, there would be much less gnashing of teeth over the rising cost of gasoline because there would be more leeway in the budget to cover it.

ITA! People consider things to be necessities that were once luxuries and then it becomes a sacrifice to live without them. I'm guilty of it too, even though I like to think I'm pretty frugal.

When things that ARE necessities start going up we balk. One of the reasons is that we don't like having to cut back on our luxuries to afford our necessities.

 

[NotUrsula]

Americans are complaining because for the most part this is a shock to the system. DH is 46 yrs old, and he keeps saying, "I can't remember it ever being like this before." He just wasn't paying attention, because it has been this bad, but not since before we were out of school.

For Americans, gasoline is a special case. We are not accustomed to seeing prices go nowhere but up. In the US we are used to seeing the price of gas go up and down with regularity, so any time it went up you just shrugged because you knew it would be back down in a few weeks. Not now. It's just going up, same as in Europe. The one constant we always had here was relatively cheap gas, and with that gone, the American way of life is teetering for an awful lot of people, especially those who live in suburban enclaves and rural areas. Cheap gas kept our food prices down, too -- now those are going up just as fast.

My family? We are feeling a pinch, but not so much because of inflation. DH lost his job last summer AND we had a new baby. DH took a pay cut and now we pay daycare again, a double hit at a bad time that has meant a 34% cut in our available income.

 

[Todd&Copper]

I guess I'm a common America then. IMO a ice cream cone or soda in the refrigerator is not a luxury. If all I do day after day is have basic bread and water that's not living thats simply exsisting. Yes, if I work every day I would like a vacation, occasionally I would like to be able to buy my kids a freakin' pizza and while I may not need a 3000 sq foot home, I would like to live in a decent neighborhood where my kids don't have to dodge gunfire to get to school and that requires money.

I'm common, too, b/c I always have soda in the fridge. No kids, just DH & I, but I get the 12-packs of diet soda on asle for $2 or $2.50, so it ends up being way cheaper than milk (which I cannot bring myslef to drink anymore) or juice (which has too many empty calories for me). Also, I drink one can a day, with dinner.
I am pretty sure that when I was a kid, soda was a treat b/c we lived in HI and it was expensive compared to tap water and Kool-Aid.

 

[NY Disney fan]

I think people should invest their money MORE in groceries, not less. That way they don't have to buy food on the outside. Packing food for work or school is the way to go. And you won't feel deprived.

 

[MrsPete]

I tell people here with satellite tv to watch the FX Channel. They show Married with Children. Comedy Channel used to show Rosanne. I tell them these are the average Americans. Low paying jobs, struggling with bills in houses that are older and furniture that is not new. The average life is not The Cosby Show, The OC, and Dallas, which are the shows they use as the basis for all Americans. Of course, we Americans see movies where all Italians are living in these beautiful houses on a grassy hillside. My neighborhood looks more like something you see in the Bronx. TV is a terrible tool for comparison.

My son takes his old IPod to dance class everyday. It gives him something to listen to while he is commuting. One of his classmates told him recently to buy him an IPod. Yes, just buy one for him. My son said no, I don't have the money to just buy you one. He said sure you do, Americans are rich. His friend then told him to buy himself a new IPod and give him the old one. He looked at his friend and asked him how much that Coke costs. His friend said 1Euro. My son said yeah, and when I buy that Coke, it costs me 1.60 of my money and it only costs you 1 of yours. We are not as rich as you think. The reason I don't have a NEW IPod is because I don't have the money to buy another one for myself, the same reason I don't have the money to buy you one.

The image of the rich American isn't JUST a problem between us and other countries.

Your post made me think of a 9th grade kid whom I taught years ago. This particular kid was black; I'm white. On a fairly regular basis he made VERY negative comments to me about being a "rich white". I remember the first day this struck me as a pattern of his: he came in very angry and he said, "I saw your new rich red Cherokee in the parking lot." I told him I didn't know what he meant, and he said, "You know you've got a new car. You've always got a new car. You're white." Anytime I wore a new item of clothing, he'd say something about it, "Look at that rich new dress. That cost as much as black people spend in a month." or "Hmph. New shoes. I bet you've got 200 pairs of shoes in your walk-in closet." He was a very angry kid in general. Over the course of the school year, I realized that he was saying what some of the other students were thinking -- this was a school with a large population of poor minority students, and many of them genuinely believed that poverty was reserved for people with dark skin!

The real irony, of course, was that he was the only child in a middle-class family, and he always dressed nicely and he got a car for his 16th birthday. On the other hand, I was a newlywed just out of college; while my husband and I weren't going hungry, we lived in a house with sheets tacked up where curtains should've been, we had a dining room table with three mismatched chairs, and we had shared one dinged-up Nissan. But he was constantly angry with all the "rich white people".

I wonder if other countries see us in the same way: They think we're all rich, regardless of what the facts may be.