I Could Just Scream

[Fitswimmer]

No flames from me either. I was thinking about this very subject earlier today while I was grocery shopping. Everything is so much higher than it was just a few years ago. I was in the dairy section getting milk and was shaking my head at the 4 dollar a gallon price tag for it. Between higher energy costs for heating and electricity, plus what you get hammered for at the pump, things aren't all that great in my house either. I know I'm lucky compared to some and my thoughts are with them in this holiday season. It's going to be a tough Christmas for some and just hang in there.

I've been saying this for months, but have been consistently told that I don't know what I'm talking about and the inflation rate is low. On other threads about the economy it's been pretty much flatly stated that anyone who is having financial trouble is having it because of their own mistakes.

The way I see it-if you get the standard 3% COLA every year while the real cost of living goes up 5 to 10% each year, you're running at a deficit of 2-8% each year. I think many of us in the Middle to Lower Middle class are in this position. You don't notice the gap at first, but as the years go on it gets harder and harder to make ends meet. Couple that with the real job losses, illnesses and other major things that can go wrong and it sets a lot of people up for a rough time.

Things are tight in my house, but fortunately not to the level that some are experiencing. My prayers go out to all of those who are suffering financial issues this time of year. It's always hard to struggle that way, but it seems particularly painful at the holidays.

 

[budbeerlady]

The way I see it-if you get the standard 3% COLA every year while the real cost of living goes up 5 to 10% each year, you're running at a deficit of 2-8% each year. I think many of us in the Middle to Lower Middle class are in this position. You don't notice the gap at first, but as the years go on it gets harder and harder to make ends meet. Couple that with the real job losses, illnesses and other major things that can go wrong and it sets a lot of people up for a rough time.

Another mess is that most people around here who still are lucky enough to have jobs havent gotten any sort of a raise in a couple of years. Things are tight, you dont ask for a raise when your company is laying off people 200 at a time. And unemployment isnt going to keep the bills paid if people are let go. Dh's check for 2 weeks unemployment in MI is $522.19 after taxes are removed. It helps, its better than nothing. But it isnt even close to the $$$ he was making an hour. I am glad that I have a job because we couldnt live on $1044.38 a month.

 

[EthansMom]

The point is that without it, we'll be making some changes. Some discretionary spending will be cut out, we'll be scaling charitable giving WAY back (we make various donations throughout the year, but normally donate 25% of the bonus check on top of that), and we'll have to tighten the regular budget to be able to save extra for some needed big ticket items like painting the house. This thread is about feeling the pinch that is happening to many in this economy. We're feeling the pinch because of the bonus situation.

I know what you're say. We don't count on DH's bonus, which isn't a guaranteed thing. But it was nice last year when he got a 5-6% bonus. We used the money to pay for home improvements and put some in our vacation fund. DH knows he will either be getting very little bonus or none at all this next spring. That means that things like home improvements and vacations will have to be scaled back.

While DH still has a job that pays a good salary and we can make our bills just fine, we're looking at cutting out one vacation next year (have done two a year for the last couple of years) and we may not put the kids in summer camp this next summer (due to higher prices).

 

[Fitswimmer]

Another mess is that most people around here who still are lucky enough to have jobs havent gotten any sort of a raise in a couple of years. Things are tight, you dont ask for a raise when your company is laying off people 200 at a time. And unemployment isnt going to keep the bills paid if people are let go. Dh's check for 2 weeks unemployment in MI is $522.19 after taxes are removed. It helps, its better than nothing. But it isnt even close to the $$$ he was making an hour. I am glad that I have a job because we couldnt live on $1044.38 a month.

Exactly, if people are feeling the pinch who still have jobs and are getting those 3% raises-it's even WORSE for those who are getting less.

I haven't heard much from the candidates on this, but I'm hoping that the election gets closer someone will begin to address what is happening to the working people in this country.

 

[ducklite]

Exactly, if people are feeling the pinch who still have jobs and are getting those 3% raises-it's even WORSE for those who are getting less.

I haven't heard much from the candidates on this, but I'm hoping that the election gets closer someone will begin to address what is happening to the working people in this country.

Maybe they need to start by addressing the number of jobs being sent overseas, because that's causing a lot of this mess.

But some people got themselves into a mess (not saying anyone on this thread!) by being greedy. There's a house a few blocks from me that the people bought with a crazy ARM product, expecting to flip the house for a huge profit a few months after it was finished. They took a loan on his 401K for teh d/p, and used other savings to pay the mortgage--expecting to recoup it all plus some within a few months. Well guess what? It didn't work. The bottom fell out of the market, and the house is now inforeclosure, plus they still owe on the 401K loan. I really can't have any sympathy for them, because they acted with zero common sense and out of sheer greed, trying to make a quick buck. I know that house is one of many that have the same scenario.

The ones who really got hurt were the people at the mortgage company that had nothing to do with that risky loan who are now being laid off, beause the company wrote more than a few of those loans that went south. Those are the people who I have symapthy for. The innocent victims of the greed that caused the mortgage crisis we are facing--and that mortgage crisis is a big part of the economy right now.

 

[mallcat]

We are probably luckier than a lot of people in that we built our house 10 years ago and have quite a bit of equity and a low house payment. We also have no vehicle payments. We don't have huge credit card debt. Plus, DH and I are DINKS now since the kids are all grown.

However, we are feeling the prices of groceries, gas, clothing, etc. just like everyone else. Plus, I have had a lot of doctor and hospital bills this year.

So, even though we make a decent salary in our household, and don't have a risky lifestyle financially, we still feel the pinch everytime we buy food, medications, etc. I am a very frugal person in that I pack my lunch, make coffee at work, combine car trips when I can, buy things only on sale, etc.

Our incomes only go up about 3% a year, which does not meet rising costs even remotely. We are appreciative of that 3% though.

We are fortunate that we haven't had to touch any savings or retirement money, etc. But, who knows if that may be still true in the future if things keep rising. And, I have been diagnosed with an auto-immune disease which requires me to take expensive medication each month. So that will be an adjustment to our finances, as well. It all adds up!

We already don't eat out as much, take cheaper vacations, and spend less discretionary money than we used to.

I guess what I'm trying to say is that unless you are filthy rich and having to just cut back on the fuel for your private jet, everyone will make some type of sacrifice depending on your financial status.

My heart goes out to young couples and families who may be either just starting out, or trying to raise small children on the meager incomes that a lot of employers are only willing to pay.

DH and I are not rich by any means, but we are making it fine and still able to save a little. Granted, we have a moderate home (1600 sf) and don't drive new cars. We try to live below our means.

But it is getting harder and harder for everyone.

Hugs to those who may be struggling worse than others .

 

[LoveBWVVBR]

I have a question that I hope won't be taken the wrong way. I see that a lot of posters on this thread were (are?) employed in some area of the real estate/mortgage industry. When times were flying high for those few years, were you able to put $$ away for the slow times that were sure to come Real estate is historically cyclical. Things were just nuts in real estate for quite a while. I imagine that a lot of commission-based agents and mortgage people made really decent incomes during the good times.

Also, did you see the slowdown coming? A couple of years ago I remember telling my sister (who has been trying to buy for years) to wait a few years because as soon as the interest-only/neg. am/3-1/5-1/etc. mortgages started adjusting we'd see tons of forclosures. It didn't take a crystal ball to see that coming, so I'm wondering if people in this industry just ignored that very real scenario and hoped that it wouldn't happen I have sympathy for people who aren't doing well because of the real estate/construction/mortgage industries (heck, my neighbors are contractors), but I wonder if many people scaled their lifestyles up to meet their paychecks during the good times and are hurting for it now

We live very modestly in a small house and haven't been affected by the current real estate situation luckily. I think that gas and food prices are high, but I haven't noticed our bills going up by too much. The only bill that I think is ridiculously high is our electric bill. I'm hoping that we can get this down by insulating our attic this winter, though. If not, I'll gripe too and say that our electric bill is stupidly high

 

[elgerber]

I have a question that I hope won't be taken the wrong way. I see that a lot of posters on this thread were (are?) employed in some area of the real estate/mortgage industry. When times were flying high for those few years, were you able to put $$ away for the slow times that were sure to come Real estate is historically cyclical. Things were just nuts in real estate for quite a while. I imagine that a lot of commission-based agents and mortgage people made really decent incomes during the good times.

Also, did you see the slowdown coming? A couple of years ago I remember telling my sister (who has been trying to buy for years) to wait a few years because as soon as the interest-only/neg. am/3-1/5-1/etc. mortgages started adjusting we'd see tons of forclosures. It didn't take a crystal ball to see that coming, so I'm wondering if people in this industry just ignored that very real scenario and hoped that it wouldn't happen I have sympathy for people who aren't doing well because of the real estate/construction/mortgage industries (heck, my neighbors are contractors), but I wonder if many people scaled their lifestyles up to meet their paychecks during the good times and are hurting for it now

We live very modestly in a small house and haven't been affected by the current real estate situation luckily. I think that gas and food prices are high, but I haven't noticed our bills going up by too much. The only bill that I think is ridiculously high is our electric bill. I'm hoping that we can get this down by insulating our attic this winter, though. If not, I'll gripe too and say that our electric bill is stupidly high

Yes, I am in the mortage industry, and 2003 was very very good for me, and yes, I saved up some nice money (at least for me). However, it has been downhill ever since, with now being the worst we've ever seen. So, the money I had saved up has long been spent on living expenses since then (along with a down payment on a car so we could finance less on it).

 

[LoveBWVVBR]

[QUOTE="Got Disney";21955495]

The price of gas, food, clothes, Insurance is ridiculous. We pay $760 out of pocket for health insursnce for the 4 of us...we just got a letter telling us it is going up to $975...WHAT no wonder there are soooooo many Americans with no health insurance. And this is Kaiser an HMO.[/QUOTE]

We pay $660/month for our BC/BS policy, and I know that DH's employer (small company) eats a bigger and bigger amount each year to keep our premium level at $660 They are good to their employees, but I wonder how long they can keep that up. I feel like $660/month is a bargain for insurance these days.

 

[elgerber]

We pay $660/month for our BC/BS policy, and I know that DH's employer (small company) eats a bigger and bigger amount each year to keep our premium level at $660 They are good to their employees, but I wonder how long they can keep that up. I feel like $660/month is a bargain for insurance these days.

I totally agree that's a bargain. I am employed with my company, and I pay over $1000 a month and that's with a $4400 family deductible and $7000 out of pocket max.

 

[LoveBWVVBR]

I totally agree that's a bargain. I am employed with my company, and I pay over $1000 a month and that's with a $4400 family deductible and $7000 out of pocket max.

That's nuts! Can you get a Health Savings Account with that type of high deductable insurance at least? I wonder if you could buy similar high deductable insurance on your own more cheaply

 

[elgerber]

That's nuts! Can you get a Health Savings Account with that type of high deductable insurance at least? I wonder if you could buy similar high deductable insurance on your own more cheaply

Yes it's totally nuts. We do have an HSA but that's another $350 out of my pocket each month to put aside. I am trying now to apply for insurance on my own that is $426 a month, $3600 deductible and $3600 max out of pocket. Hopefully I'll hear within the week if they will accept us!

 

[T. Lynn]

I have a question that I hope won't be taken the wrong way. I see that a lot of posters on this thread were (are?) employed in some area of the real estate/mortgage industry. When times were flying high for those few years, were you able to put $$ away for the slow times that were sure to come Real estate is historically cyclical. Things were just nuts in real estate for quite a while. I imagine that a lot of commission-based agents and mortgage people made really decent incomes during the good times.

Also, did you see the slowdown coming? A couple of years ago I remember telling my sister (who has been trying to buy for years) to wait a few years because as soon as the interest-only/neg. am/3-1/5-1/etc. mortgages started adjusting we'd see tons of forclosures. It didn't take a crystal ball to see that coming, so I'm wondering if people in this industry just ignored that very real scenario and hoped that it wouldn't happen I have sympathy for people who aren't doing well because of the real estate/construction/mortgage industries (heck, my neighbors are contractors), but I wonder if many people scaled their lifestyles up to meet their paychecks during the good times and are hurting for it now

We live very modestly in a small house and haven't been affected by the current real estate situation luckily. I think that gas and food prices are high, but I haven't noticed our bills going up by too much. The only bill that I think is ridiculously high is our electric bill. I'm hoping that we can get this down by insulating our attic this winter, though. If not, I'll gripe too and say that our electric bill is stupidly high

I've only been in it for a year so I really had no income to put away. I did have a listing and sold it but funds went for unexpected dental bills, other bills and my real estate dues.

 

[T. Lynn]

I totally agree that's a bargain. I am employed with my company, and I pay over $1000 a month and that's with a $4400 family deductible and $7000 out of pocket max.

Wow, I have an individual plan for my daughter and I with a 2,500 individual deductible and 7,000 out of pocket max and we only pay $119.00 a month. It's with American Medical Security. We also have a dental discount card which is included with the plan and it's a discount of around 40% or so.

 

[Am_I_There_Yet]

I have a question that I hope won't be taken the wrong way. I see that a lot of posters on this thread were (are?) employed in some area of the real estate/mortgage industry. When times were flying high for those few years, were you able to put $$ away for the slow times that were sure to come Real estate is historically cyclical. Things were just nuts in real estate for quite a while. I imagine that a lot of commission-based agents and mortgage people made really decent incomes during the good times.

Yes, thank God.

Also, did you see the slowdown coming? A couple of years ago I remember telling my sister (who has been trying to buy for years) to wait a few years because as soon as the interest-only/neg. am/3-1/5-1/etc. mortgages started adjusting we'd see tons of forclosures. It didn't take a crystal ball to see that coming, so I'm wondering if people in this industry just ignored that very real scenario and hoped that it wouldn't happen I have sympathy for people who aren't doing well because of the real estate/construction/mortgage industries (heck, my neighbors are contractors), but I wonder if many people scaled their lifestyles up to meet their paychecks during the good times and are hurting for it now

I've seen this coming for at least two years. A freight train coming at me couldn't have been more obvious. Not only did we start preparing financially, I went over to the dark side and started dealing with the foreclosure side of the industry, and was able to somewhat establish myself before it hit the fan - but, this side of the industry doesn't pay as well commission-wise, unless you deal high volume, and I seriously think an agent has to die to get your foot in the door. If agents think the resale market is competitive... well, that just makes me laugh now.

My husband still does inspections though, but he's as busy as he's always been. The first few weeks of September were a little scary, but it's been okay since then. I think the media played a part in the initial slow down here.

Houston was never in the bubble that the majority of the nation was in. We're slower now, but we're not having near the problems that some other areas are having. But then again, I'm waiting for the other shoe to drop, and preparing like you would not believe.

We live very modestly in a small house and haven't been affected by the current real estate situation luckily. I think that gas and food prices are high, but I haven't noticed our bills going up by too much. The only bill that I think is ridiculously high is our electric bill. I'm hoping that we can get this down by insulating our attic this winter, though. If not, I'll gripe too and say that our electric bill is stupidly high

We'd like to move, but this is the one thing that we've put on hold for now. We are however watching a neighborhood that I see turning soon, and we hope to be able to snag a deal. It's not REO-driven - yet - but I see it being mixed in the next 12 months or so. If the right deal comes along, and my payments won't increase, we'll consider it.

We're still living our lives, but with a cautious eye on the future.

 

[Liberty Belle]

Exactly. We don't need this money for month to month expenses, but we definitely use it for larger projects around the house, charitable giving, and discretionary spending throughout the year. We were looking towards using some of this years bonus to resod a large section of our lawn and add some additional landscaping, plus put a chunk of it away towards the $20K we'll need in two years to repaint the house. The sod and house painting need to be done one way or the other, so we'll have to pull it out of our monthly budget, which means cutting back on other things.

I'm sure this is a setback for you, but can you see how this seems out of place with posts where people aren't able to buy their child one Christmas gift and they're having to use credit cards to pay utility bills? I think it's just a little bit insensitive to post this here.

 

[jobhunter]

Yes it's totally nuts. We do have an HSA but that's another $350 out of my pocket each month to put aside. I am trying now to apply for insurance on my own that is $426 a month, $3600 deductible and $3600 max out of pocket. Hopefully I'll hear within the week if they will accept us!

I hope it comes through for you. That other is just insane!

 

["Got Disney"]

I totally agree that's a bargain. I am employed with my company, and I pay over $1000 a month and that's with a $4400 family deductible and $7000 out of pocket max.

Wow that makes me feel blessed...why do they charge you so much as an employee???? I would see if they offer cash instead and see if you can apply it somewhere else. But be sure not to cancel till you find something else.

Scarry how the economy sucks. Makes me wonder what it will be like for our children. We may end up living together for ever

Hang in there the best is yet to come at least that's what I keep telling myself

 

[ducklite]

I'm sure this is a setback for you, but can you see how this seems out of place with posts where people aren't able to buy their child one Christmas gift and they're having to use credit cards to pay utility bills? I think it's just a little bit insensitive to post this here.

There are a lot of people on this thread who are in the same situation. I didn't know that I had to be in danger of foreclosure to post on this thread. Maybe you should call out some of the others who like me have said that they are feeling the pinch but feel blessed for what we have. Or do you have an agenda?

 

[elgerber]

[QUOTE="Got Disney";21969177]Wow that makes me feel blessed...why do they charge you so much as an employee???? I would see if they offer cash instead and see if you can apply it somewhere else. But be sure not to cancel till you find something else.

Scarry how the economy sucks. Makes me wonder what it will be like for our children. We may end up living together for ever

Hang in there the best is yet to come at least that's what I keep telling myself[/QUOTE]

They won't pay cash, because they don't subsidize at all, they just offer us the plan. I was subsidized by about $200 when I worked for my own 2 loan officers, but they decided they can't pay me a base anymore, so now I am a contract processory paid only per file and I pay all my insurance, my own 401k match (but you have to make money to match that LOL) and my own payroll taxes. Hopefully I hear back soon on the other plan.