How is everyone dealing with their finances in this economy?

[flamesfever]

Originally Posted by Fuzz

The giant corporations make that harder and harder. What are you going to do, open a hardware store(for example)? You can't compete on inventory, because you won't get the deals HD or Rona get.

OK, so you create something unique, and your business is to sell it. Except now it's been copied and sold for 1/10th of what you can manage, 6 months after you got setup.

I don't think in this modern world small businesses have much of a chance. Sure, there are some industries that might find success, but it's not like it was in the past.

Small business will always have certain advantages, for example:

1. can offer more personalized and customized service

2. is more efficient at making changes

3. is more creative

4. provide a greater level of care and involvement

Have you ever noticed that it's often the immigrants that tend to recognize the opportunities more than those that have been here for generations?

Do you ever watch the dragons?

[Fuzz]

Originally Posted by flamesfever

Small business will always have certain advantages, for example:

1. can offer more personalized and customized service

2. is more efficient at making changes

3. is more creative

4. provide a greater level of care and involvement

Have you ever noticed that it's often the immigrants that tend to recognize the opportunities more than those that have been here for generations?

Do you ever watch the dragons?

Corporations can do all those things. If they aren't doing it, it's probably because it isn't profitable.


Most of the stuff on Dragons Den proves my point, really. Too easy to rip off these ideas.

[flamesfever]

Originally Posted by Fuzz

Corporations can do all those things. If they aren't doing it, it's probably because it isn't profitable.


Most of the stuff on Dragons Den proves my point, really. Too easy to rip off these ideas.

First paragraph is false, and you would know it if you spent any amount of time in a large corporation.

Second paragraph, most of the Dragons insist that presenters have patents, and more recently, the presenters are well along the path of being financially successful.

[Harry Lime]

Originally Posted by chemgear

https://nationalpost.com/news/canada...2%20per%20cent).

Canada’s living standards alarmingly on track to be the lowest in 40 years

If Canada’s per-capita gross domestic product does not recover in 2024, the decline since mid-2019 may be the longest in the last four decades, a new study has found.

“Despite claims to the contrary, living standards are declining in Canada,”

Released on Thursday, the study found that from April 2019 to the end of 2023, inflation-adjusted per-person GDP declined from $59,905 to $58,111 or by three per cent.

This decline is exceeded only by the decline in 1989 to 1992 (-5.3 per cent) and 2008 to 2009 (-5.2 per cent).

“The severity of the decline in living standards should be a wake-up call for policymakers across Canada to immediately enact fundamental policy reforms to help spur economic growth and productivity,”

The scary part about this, is that unlike previous drops, this is being unequally led by the lower and middle class. The top 10% aren't losing their shirts this time.

[Fuzz]

Originally Posted by flamesfever

First paragraph is false, and you would know it if you spent any amount of time in a large corporation.

Second paragraph, most of the Dragons insist that presenters have patents, and more recently, the presenters are well along the path of being financially successful.

You ignored my second sentence. And go ahead and imagine the value of patenting a widget when China or some other manufacturer will copy it in a month.

[flamesfever]

Originally Posted by Fuzz

You ignored my second sentence. And go ahead and imagine the value of patenting a widget when China or some other manufacturer will copy it in a month.

Sure patents will always carry and element of risk that your product will be copied, but it gives a person some recourse through the Courts if that happens.

I don't think that the idea of having your patent copied should prevent one from pursuing what could turn out to be a good opportunity. What you are saying in paragraph two is being a little too cynical in my opinion.

[opendoor]

Originally Posted by chemgear

https://nationalpost.com/news/canada...2%20per%20cent).

Canada’s living standards alarmingly on track to be the lowest in 40 years

If Canada’s per-capita gross domestic product does not recover in 2024, the decline since mid-2019 may be the longest in the last four decades, a new study has found.

“Despite claims to the contrary, living standards are declining in Canada,”

Released on Thursday, the study found that from April 2019 to the end of 2023, inflation-adjusted per-person GDP declined from $59,905 to $58,111 or by three per cent.

This decline is exceeded only by the decline in 1989 to 1992 (-5.3 per cent) and 2008 to 2009 (-5.2 per cent).

“The severity of the decline in living standards should be a wake-up call for policymakers across Canada to immediately enact fundamental policy reforms to help spur economic growth and productivity,”

Whew, I sure am glad I get paid in money, and not GDP.

Real median wages are still growing and are up 5.5% in the last 5 years, compared to 2.1% in the 5 years before that and the 3.6% the 5 years before that. Or to compare to the US, their GDP per capita has increased by 10% in the last 5 years but real median earnings have only increased 3.9% (less than Canada).

GDP per capita is a flawed measure that only really works if the population demographics remain static. If labour force growth lags population growth (as it has in Canada with so many people entering retirement), then GDP per capita will not reflect actual income or living standards.

[bluejays]

Just checked my mail and got a letter from CIBC saying my line of credit which is currently prime plus 0.5% will be jumping to prime plus 1%. Pretty substantial. Unprovoked jumps. Sounds like they’re preparing for a drop and want to pad their margins.

[GGG]

Originally Posted by opendoor

Whew, I sure am glad I get paid in money, and not GDP.

Real median wages are still growing and are up 5.5% in the last 5 years, compared to 2.1% in the 5 years before that and the 3.6% the 5 years before that. Or to compare to the US, their GDP per capita has increased by 10% in the last 5 years but real median earnings have only increased 3.9% (less than Canada).

GDP per capita is a flawed measure that only really works if the population demographics remain static. If labour force growth lags population growth (as it has in Canada with so many people entering retirement), then GDP per capita will not reflect actual income or living standards.

and the report highlighting this gdp per capita stagnation is everyone’s favourite think tank. The Fraser Institute. So while the numbers are accurate the conclusions drawn and the press articles based on the reports will always be agenda driven.

[Weitz]

With a country like Canada having very expensive social programs (health care) is that not a useful statistic?

[Scrambler]

My greatest years for income was 2011-2019. Same timeframe got married, had two kids, bought house, etc. Thankfully I saved a fair amount during those good years, making things a little less painful now. Using current paychecks to pay mortgage and inflation, not saving much of anything now, just breaking even.

The savings from before I have in relatively stable investments, and a portion in more volatile things like crypto (doing much better than 2022 in that regard).

I hate my job and I have almost no respect for my employer. Yet at 43 with 5 & 9 year olds and my wife as a homemaker, the thought of re-education, pivoting into something else feels too risky, so I stay in misery with the job I have.

Education doesn't seem to guarantee any tremendous income prospects making that idea even more discouraging.

I consider unlaliving myself quite a lot. That's nothing new really, have felt that since I was a teen. But it's more troubling on my mind than it's ever been before. Only thing that keeps that in check are my wife and kids, leaving them like that would put an unreasonable burden on them.

And so, I just keep keeping on I guess.

Always hoping that things will get 'better again' but the pessimistic (realistic) part of my brain kicks in. Back to speaking on finances and current economy, I think my kids generation is going to have a really hard time compared to now.

[GGG]

Originally Posted by Weitz

With a country like Canada having very expensive social programs (health care) is that not a useful statistic?

It might be a useful statistic.

Directly correlating GDP to quality of life without demonstrating that link or discussing how immigration affects GDP per capita and any lags that it may cause makes it less useful.

https://www.worldometers.info/gdp/gdp-per-capita/

List of countries by gdp be per capita

Best quality of life

https://www.usnews.com/news/best-cou...uality-of-life

Now these aren’t definitive rankings but it really calls into question the GDP vs QOL thesis.

I’m not saying this isn’t a concern, I’m saying that article and and paper referenced were written to support an agenda rather than an analysis of what is actually happening

[RichieRich]

Originally Posted by Scrambler

My greatest years for income was 2011-2019. Same timeframe got married, had two kids, bought house, etc. Thankfully I saved a fair amount during those good years, making things a little less painful now. Using current paychecks to pay mortgage and inflation, not saving much of anything now, just breaking even.

The savings from before I have in relatively stable investments, and a portion in more volatile things like crypto (doing much better than 2022 in that regard).

I hate my job and I have almost no respect for my employer. Yet at 43 with 5 & 9 year olds and my wife as a homemaker, the thought of re-education, pivoting into something else feels too risky, so I stay in misery with the job I have.

Education doesn't seem to guarantee any tremendous income prospects making that idea even more discouraging.

I consider unlaliving myself quite a lot. That's nothing new really, have felt that since I was a teen. But it's more troubling on my mind than it's ever been before. Only thing that keeps that in check are my wife and kids, leaving them like that would put an unreasonable burden on them.

And so, I just keep keeping on I guess.

Always hoping that things will get 'better again' but the pessimistic (realistic) part of my brain kicks in. Back to speaking on finances and current economy, I think my kids generation is going to have a really hard time compared to now.

Thanks for sharing and being open. That's a tough step. Most definitely please consider, if not already doing so, some help for talking through things. With a reliant wife and kids there's a lot to be grateful for and any sudden absence would be devastating which I'm sure you don't want. As you said you've worked hard to get to where you are, you did all the right things. Keep the grind going AND look for opportunities to get more satisfaction in life.

Recently I read somewhere the following (paraphrased): You SEE that which you LOOK AT most often.

This means if you are consciously looking FOR negativity (work, relationships, media) then you are more inclined to notice that negativity. Similarly if you look for things to be happy about, to be grateful for, small joys, etc... then you can slowly become more positive. But it's work, not easy, and sometimes works best as team (ie have "positivity dates" with your wife/kids).

[opendoor]

Originally Posted by GGG

It might be a useful statistic.

Directly correlating GDP to quality of life without demonstrating that link or discussing how immigration affects GDP per capita and any lags that it may cause makes it less useful.

https://www.worldometers.info/gdp/gdp-per-capita/

List of countries by gdp be per capita

Best quality of life

https://www.usnews.com/news/best-cou...uality-of-life

Now these aren’t definitive rankings but it really calls into question the GDP vs QOL thesis.

I’m not saying this isn’t a concern, I’m saying that article and and paper referenced were written to support an agenda rather than an analysis of what is actually happening

Ireland is a good example. In 2015 their GDP (and GDP per capita) grew by over 25%. Was it due to an economic miracle where everyone got 25% richer? No, it was because Apple shifted the domicile of their intellectual property to Ireland that year in what was essentially a paper transaction in order to minimize the taxes they owed. As a result of that, Ireland's central bank came up with a modified Gross National Income measure because GDP and GDP per capita were essentially useless for them.

GDP includes a ton of things that don't directly impact residents' well being, or at least don't impact them to anywhere near the degree that the dollars suggest. Depreciation of intellectual property is a good example. So when Apple depreciates the value of their Irish-domiciled iPhone patents, the value of that depreciation gets added to Ireland's GDP. But it's a paper transaction that doesn't result in that money entering the Irish economy.

Or when Irish-domiciled foreign companies have retained earnings that flow almost entirely to foreign investors. Again that is included in Ireland's GDP even though virtually all of the money came from outside the country and will go back outside the country when it's paid to shareholders. Yeah, there are some benefits to this for Ireland in that it creates some jobs and they get a bit of tax revenue. But only a small portion of that money ends up staying in Ireland.

So for tax havens and places that have tons of companies headquartered there (the US being a good example of the latter), the correlation between GDP and what people actually earn can be pretty weak.

[Shazam]

Originally Posted by opendoor

Ireland is a good example. In 2015 their GDP (and GDP per capita) grew by over 25%. Was it due to an economic miracle where everyone got 25% richer? No, it was because Apple shifted the domicile of their intellectual property to Ireland that year in what was essentially a paper transaction in order to minimize the taxes they owed. As a result of that, Ireland's central bank came up with a modified Gross National Income measure because GDP and GDP per capita were essentially useless for them.

GDP includes a ton of things that don't directly impact residents' well being, or at least don't impact them to anywhere near the degree that the dollars suggest. Depreciation of intellectual property is a good example. So when Apple depreciates the value of their Irish-domiciled iPhone patents, the value of that depreciation gets added to Ireland's GDP. But it's a paper transaction that doesn't result in that money entering the Irish economy.

Or when Irish-domiciled foreign companies have retained earnings that flow almost entirely to foreign investors. Again that is included in Ireland's GDP even though virtually all of the money came from outside the country and will go back outside the country when it's paid to shareholders. Yeah, there are some benefits to this for Ireland in that it creates some jobs and they get a bit of tax revenue. But only a small portion of that money ends up staying in Ireland.

So for tax havens and places that have tons of companies headquartered there (the US being a good example of the latter), the correlation between GDP and what people actually earn can be pretty weak.

Your takes are terrible. I'm surprised you even show your face with your inept interest rate predictions.

[Cecil Terwilliger]

Originally Posted by Shazam

Your takes are terrible. I'm surprised you even show your face with your inept interest rate predictions.

You can see their face?

[opendoor]

Originally Posted by Shazam

Your takes are terrible. I'm surprised you even show your face with your inept interest rate predictions.

LOL. Given that I generally make a point of never predicting interest rates, I'm going to assume you're misremembering.

Though aren't you the guy that didn't know what a recession was and thought the US was in the middle of one in 2022?

Originally Posted by Shazam

The word recession has a real meaning - two consecutive quarters of negative GDP growth.

So the USA is/was in a recession.

Really nailed that one.

[rohara66]

Originally Posted by Scrambler

My greatest years for income was 2011-2019. Same timeframe got married, had two kids, bought house, etc. Thankfully I saved a fair amount during those good years, making things a little less painful now. Using current paychecks to pay mortgage and inflation, not saving much of anything now, just breaking even.

The savings from before I have in relatively stable investments, and a portion in more volatile things like crypto (doing much better than 2022 in that regard).

I hate my job and I have almost no respect for my employer. Yet at 43 with 5 & 9 year olds and my wife as a homemaker, the thought of re-education, pivoting into something else feels too risky, so I stay in misery with the job I have.

Education doesn't seem to guarantee any tremendous income prospects making that idea even more discouraging.

I consider unlaliving myself quite a lot. That's nothing new really, have felt that since I was a teen. But it's more troubling on my mind than it's ever been before. Only thing that keeps that in check are my wife and kids, leaving them like that would put an unreasonable burden on them.

And so, I just keep keeping on I guess.

Always hoping that things will get 'better again' but the pessimistic (realistic) part of my brain kicks in. Back to speaking on finances and current economy, I think my kids generation is going to have a really hard time compared to now.

Are we the same person? Amen, dude.



I think there a lot of people in a similar boat.


My career/earnings/investments have progressed... but we are 'poorer' then we were 5 years ago when we made a lot less.


We're doing fine in the grand scheme of things but only because we did post secondary 20 years ago and got into real estate 15 years ago and upgraded to a house 5-6 years ago. Timing be damned we'd be ####ed.

[blankall]

Originally Posted by Scrambler

My greatest years for income was 2011-2019. Same timeframe got married, had two kids, bought house, etc. Thankfully I saved a fair amount during those good years, making things a little less painful now. Using current paychecks to pay mortgage and inflation, not saving much of anything now, just breaking even.

The savings from before I have in relatively stable investments, and a portion in more volatile things like crypto (doing much better than 2022 in that regard).

I hate my job and I have almost no respect for my employer. Yet at 43 with 5 & 9 year olds and my wife as a homemaker, the thought of re-education, pivoting into something else feels too risky, so I stay in misery with the job I have.

Education doesn't seem to guarantee any tremendous income prospects making that idea even more discouraging.

I consider unlaliving myself quite a lot. That's nothing new really, have felt that since I was a teen. But it's more troubling on my mind than it's ever been before. Only thing that keeps that in check are my wife and kids, leaving them like that would put an unreasonable burden on them.

And so, I just keep keeping on I guess.

Always hoping that things will get 'better again' but the pessimistic (realistic) part of my brain kicks in. Back to speaking on finances and current economy, I think my kids generation is going to have a really hard time compared to now.

Life in 40s is just a grind. Kids, financial responsibilities, anxiety, bad sleep, getting old, etc...You used to be full of hope and opportunities but are now largely resigned to where you are.

On top of that as you begin to age, you slow down and don't have energy and enthusiasm for things you used to love. There's a lot less things like guys trips, big weekends out, etc.. that used to make a tough week seem worth it. Unfortunately, it's a pretty universal experience:

https://www.theguardian.com/commenti...or-millennials

Financially, you're doing a lot better than you think though. Sure you aren't putting as much away, but you own a house, so you're net worth likely increased more in the last few years than it ever did. Also, things apparently get much better around 50. Right now, you're at an age, where your giving a lot and not receiving a lot for you. That will change though.

I know it's a cliche, but hang in there, things get better. It's statistically proven that things get better.

[WinnipegFan]

Maybe not the right response. I hope you are able to find some joy in your 40s a waste to toss 10 years and dismiss it as a grind.