How is everyone dealing with their finances in this economy?

[Johnny199r]

Originally Posted by MoneyGuy

^I know a chiropractor like the lawyers you know. He had a successful practice and did nothing with his money; he even sponged off of his then-wife (related to me) and her credit cards. He’s now mid-‘70s and doesn’t have a pot to piss in so can’t stop working.

There's a sizable contingent in society that don't have an income problem, but a spending problem. I've seen family members living in poverty in old age, or working until they drop dead. Both options are terrible. I'd like to retire early-ish while I (hopefully) still have my health, but that's just me. Some people think they might die early so why both saving a cent. That's quite a risk to take and one I don't view as prudent. Maybe they'll get lucky(!?!?!) and die early, but if they don't, government programs provide pretty meagre income in retirement.

[Derek Sutton]

Originally Posted by Zary's-Mustache

I will just lay everything on the table. I have no idea how people are surviving out there. I am married with 2 kids and make approx 90k after taxes. Wife doesn't work.

My mortgage is pretty low at 150k. I can't seem to save any money at the end of each year. Feels like I'm working just to stay afloat. I do save some but it definitely isn't enough for any kind of retirement. I don't have any benefits or a pension plan.

Having said all that I know lots of people are even in worse situations making less and it always boggles my mind how people can even afford these big mortgages. I have a friend who makes as much as me but his mortage is 3 times mine. I really don't understand how he does it.

Inflation is insane. Grocery shopping is insane. Feels like everything is over priced. I counted 12 strawberries the other day for $7. My kids eat 12 strawberries a day.

This is more of a rant and don't really know the point other than how are people getting by out there?

So you’re essentially “living” off of $7500 a month. First thing is to live off $6500 a month and put $1000 away into tax free savings accounts for you and your wife. Then you have to make a budget and “STICK TO IT”. Somewhere you have to find a one time expense for a deep freeze. This will make food budgeting easier and allow you to save in the grocery store by stocking up on sale items.

Meal planning is a great place to start finding ways to save on food costs as well as cutting food waste. Meal planning also solves the “what’s for dinner tonight” question. Include everything in your meal plan from snacks and treats to every meal. A key to this is download the FLIPP App which contains all the weekly flyers and allows you to create lists from store to store. Focus on two stores each week to shop at which willcut down on time and fuel costs (and save your sanity) vs going to 4 or 5 different stores. Set aside time once a week to go to the store(s) and by what is on your list and what is on sale!! If strawberry’s are $7 a dozen, well guess what? Buy bananas and wait until the berries go down to $4 a dozen

Avoid Costco unless you are committed to your shopping list. If you go to Costco try to get in and get out as fast as possible and avoid “shopping”. We all buy T shirts we don’t need, a couple of books, etc… when going into Costco.

What you spend on food and consumables is one thing you CAN CONTROL vs the cost of gas to work, property taxes, utility costs etc. And don’t be afraid to stay home, every time you leave your house be prepared to spend $100. And getting back to one of my first statements, pay yourself first, and make yourself a budget.

[jayswin]

The Flipp app is so great. I love being able to just type a food product in like bacon and it gives every sale in the Calgary area for bacon. Makes picking which grocery store to go to so much easier, rather than trying to go thru 5-6 online flyers.

[activeStick]

Originally Posted by jayswin

The Flipp app is so great. I love being able to just type a food product in like bacon and it gives every sale in the Calgary area for bacon. Makes picking which grocery store to go to so much easier, rather than trying to go thru 5-6 online flyers.

Yes! I use this app every week and unless I have a craving for meat from a butcher shop, whatever is on sale drives what I eat that week.

[RichieRich]

Originally Posted by Derek Sutton

So you’re essentially “living” off of $7500 a month. First thing is to live off $6500 a month and put $1000 away into tax free savings accounts for you and your wife. Then you have to make a budget and “STICK TO IT”. Somewhere you have to find a one time expense for a deep freeze. This will make food budgeting easier and allow you to save in the grocery store by stocking up on sale items.

Meal planning is a great place to start finding ways to save on food costs as well as cutting food waste. Meal planning also solves the “what’s for dinner tonight” question. Include everything in your meal plan from snacks and treats to every meal. A key to this is download the FLIPP App which contains all the weekly flyers and allows you to create lists from store to store. Focus on two stores each week to shop at which willcut down on time and fuel costs (and save your sanity) vs going to 4 or 5 different stores. Set aside time once a week to go to the store(s) and by what is on your list and what is on sale!! If strawberry’s are $7 a dozen, well guess what? Buy bananas and wait until the berries go down to $4 a dozen

Avoid Costco unless you are committed to your shopping list. If you go to Costco try to get in and get out as fast as possible and avoid “shopping”. We all buy T shirts we don’t need, a couple of books, etc… when going into Costco.

What you spend on food and consumables is one thing you CAN CONTROL vs the cost of gas to work, property taxes, utility costs etc. And don’t be afraid to stay home, every time you leave your house be prepared to spend $100. And getting back to one of my first statements, pay yourself first, and make yourself a budget.

THIS!
Yes... gotta budget and stick to it. Also review EVERYTHING if you're serious and really REALLY question if something is a WANT or a NEED. If you're serious you need to pull all your bills and review, often.



And question EVERY recurring bill/fee related to anything and everything. Odds are you can eradicate or reduce a lot of them. Simply like:
- Netflix, Prime, gym, etc... recurring subscriptions.
- Phone/internet/tv... are you paying the ongoing rate or did you find a promo rate... you can usually beat the promo rates with some savvy internet sleuthing and bringing that to the table
- Cell phone bills... I see/hear of people paying $100++ PER PERSON in their family, and that does not even include a monthly fee for new phone. AND every person in their family has some whizbang fancy plan and a newer phone. I'm at roughly $35/person for 75gb unlimited north america everything.

- Do you pay for parking? find a lower price or alternate means
- do you buy takeouts often? coffee?
- do you/your family like "nice gear" like name brand stuff, and replace it too often and/or have too much?

- Plan better and be more pro-active than reactive
- Do buy stuff on sale, or not at all. Stock up, sensibly.

- Don't buy new everything, there's a VERY healthy used market in Calgary. might mean waiting a bit before finding that special item... and by then maybe you've figured out you don't need it.
- maybe you can sell some of your family's unused stuff too. Learn how to post decent photos and descriptions as that makes a massive difference to final price, interest, and how fast stuff moves. Be aware of seasonality of many things.

- DO take advantage of EVERY single chance to get discounts, free money (ie workplace matching), and to legally reduce your taxable income.
- Your home... small things like energy efficiency stuff (lower home temp, shorter showers, less stuff plugged in, better utility plans, changing driving habits)



Too many people say to themselves "gee, I work hard and earn enough to afford this coffee.... or new jacket etc etc." and then apply that logic to EVERYTHING. wrong wrong wrong. Sure buy the occasional MEANINGFUL item/experience, but otherwise... don't.


Too many people say to themselves "gee... it's only $5, or $10 etc..." but don't realize they do this daily, multiple times.



I'm definitely not saying do nothing and live on catfood here. When you consider that the national FAMILY income is about $75k, that means lots of people have figured it out. Lots haven't too.



Great question and I appreciate you putting yourself out there with intent to learn. It's not easy. You'll get lots of advice, and not all of it may work for you, or resonate with you. But simply start.


didn't mean for such a long post... I've been down this road myself, and come out the other end with way less debt, more investments, better ability to deal with life surprises (helloooo Covid layoff!!), and a decent investment approach/results.

[RichieRich]

sorry about the wild spacing... weird. won't let me edit to clean up...

[Tiger]

Things like starbucks, slurpees, or anything else that works for me to stop me impulse buying is just asking myself if I'm really going to get enough happiness out of the dollar amount. Turns out I'd get the same amount of joy out of a $2 Tim's #### than a $6 starbucks.

[Derek Sutton]

To add to my rant above: We have changed a few things over the years, the first was cutting down on eating out, we use to go out every Friday for dinner with another couple, this basically ended during Covid and have since just took turns hosting one another for dinner on Friday nights and cook for each other (odd time we will order pizza/ Chinese in). We rarely eat out, like once every couple of months is it. And when we do, we never order more than one drink. I had to go into work yesterday and thought since it was a Saturday I’d treat myself and order some through Skip the dishes for lunch. I was shocked when I went to order from Popeyes and a Chicken Sandwich was going to be $26 delivered, like $16 for the combo, plus $3 delivery plus tip for the driver plus GST. I was able to leave by 1:00b so I ate when I got home.

I’m taking this year off from golf league. The cost for league itself is around $400 so not expensive but then you add a cart ($10) couple beers ($15), 50/50 and birdie pot ($10) you are now at $35/ night PLUS the $400. Instead the wife and I plan to go play disc golf on Thursday nights with some friends, which cost nothing (and you just pack your own beer).

Just today we canceled a planned trip over Canada Day long weekend to see George Strait in Salt Lake City due to cost. Tickets($800) gas ($600) and hotels ($600) were going to be $2000 for a Friday to Monday trip. The exchange rate is terrible which added to these costs. I know first world problems… But even though we could afford it, we decided it’d be crazy to spend that and we can do something much better with that money. My cousin who lives there is taking the tickets and will have no problem getting face value for them for us.

Pretty well since we’ve been married (over 20 years now), we have only ever “lived” off one income and saved the other income (divided into retirement and vehicle/ vacation/ renovation, mortgage pay down). Less than a year into our marriage my wife was out of work for nearly a year and we learned quickly how to budget. This helped with my own job loss in 2016 and of course a Covid lay off in 2020.

[8sPOT]

Now that I've now managed to be able to afford my house and all my bills on my income alone, I have this great vision that I'll meet the woman of my dreams and she moves in and her income is all play money. But its been 5 years so that dream is slowly withering away.

Doing it alone can be brutal.

[Acey]

Originally Posted by 8sPOT

Now that I've now managed to be able to afford my house and all my bills on my income alone, I have this great vision that I'll meet the woman of my dreams and she moves in and her income is all play money. But its been 5 years so that dream is slowly withering away.

Doing it alone can be brutal.

This is my exact scenario. Doing well, no car payment or debt aside from mortgage payments I can easily cover after putting a lot down, and am just hoping to find a long term partner before I hit... 40?

[Engine09]

I have coworkers who ask me what I do with all my extra money since I don't have a wife or kids. I remind them that I pay 100% of every bill. I don't get to split the property tax, insurance, electricity, gas or mortgage with anyone. Would be incredible to pay only half of those bills.

[GirlySports]

Originally Posted by Engine09

I have coworkers who ask me what I do with all my extra money since I don't have a wife or kids. I remind them that I pay 100% of every bill. I don't get to split the property tax, insurance, electricity, gas or mortgage with anyone. Would be incredible to pay only half of those bills.

but you only need half the space

Then if you get a roommate, half of that!

[Engine09]

I'd burn my house down and walk away before getting a roommate.

Yeah, it's a lot of space for 1 guy but I sacrifice a lot and put in an incredible amount of work on renos, etc to keep it. It's worth it.

[blankall]

Originally Posted by Engine09

I have coworkers who ask me what I do with all my extra money since I don't have a wife or kids. I remind them that I pay 100% of every bill. I don't get to split the property tax, insurance, electricity, gas or mortgage with anyone. Would be incredible to pay only half of those bills.

Maybe things are different in Calgary, where single people are buying detached properties, but when I was single, things were much better off financially. I was living in a nice studio apartment.

Now I have a massive mortgage, daycare bills, food, all of the costs of home ownership, etc...My partner's work is sporadic. She was on EI after the pregnancy. There's another baby on the way. The idea of two daycare bills is exhausting. If we manage to get our first born into a school, I guess we'll see some alleviation there. We'll be paying for after school care, but that's considerably cheaper than full time daycare. That's assuming we can get into a good public school too.

The dream that splitting expenses and cheaper living with a partner is going to make you more financially stable...is in most cases just a dream. In order to make that work, you need to find a stable and financially responsible partner - you are attracted to long term and can work out a relationship with - and both agree on no kids. The majority of partners (both male and female) when they see that the other partner is saving and/or making more money, will come up with ways to spend that money. You might not see the need for a new car, furniture, etc... but your partner probably will.

Then you need to really hope you never get divorced, or if you do have a pre-nup and hope the other person makes more money than you.

[blankall]

Originally Posted by Engine09

I'd burn my house down and walk away before getting a roommate.

Yeah, it's a lot of space for 1 guy but I sacrifice a lot and put in an incredible amount of work on renos, etc to keep it. It's worth it.

It sounds like you're doing a lot better than you think. I'm assuming you bought your house before the recent spike in prices. Which means, all of the equity in the house is yours. Your post-retirement life is going to cost half as much.

If you really wanted to decrease your expenses, you could downsize from a detached to a condo, and probably have no mortgage. That flexibility only comes with being single. I have constant pressure to upgrade to a place with more space. With a 3 year old and a baby on the way, at 43, I'm not going to be an empty nester until 65+. Then I have to prepare for expenses like post-secondary tuition.

[Zary's-Mustache]

Originally Posted by Engine09

I have coworkers who ask me what I do with all my extra money since I don't have a wife or kids. I remind them that I pay 100% of every bill. I don't get to split the property tax, insurance, electricity, gas or mortgage with anyone. Would be incredible to pay only half of those bills.

Many people with wife and kids still don't get to split any bills.

[Winsor_Pilates]

Originally Posted by 8sPOT

Now that I've now managed to be able to afford my house and all my bills on my income alone, I have this great vision that I'll meet the woman of my dreams and she moves in and her income is all play money. But its been 5 years so that dream is slowly withering away.

Doing it alone can be brutal.

Originally Posted by Acey

This is my exact scenario. Doing well, no car payment or debt aside from mortgage payments I can easily cover after putting a lot down, and am just hoping to find a long term partner before I hit... 40?

You guys are looking at it backwards.
You have your financing under control and no bad debt because you're single

Once you find that partner, say goodbye to your budgets and hello to Sephora debt. You don't want to pain of looking at your CC bill and seeing $500 haircuts

[you&me]

Originally Posted by Winsor_Pilates

You guys are looking at it backwards.
You have your financing under control and no bad debt because you're single

Once you find that partner, say goodbye to your budgets and hello to Sephora debt. You don't want to pain of looking at your CC bill and seeing $500 haircuts

You didn't even mention kids, but the Sephora debt doesn't only result from your wife

Somewhere earlier in the thread, someone posted that they couldn't wait until their kid was out of diapers so they could drop that expense... Does anyone else want to tell him?

[photon]

Originally Posted by Acey

This is my exact scenario. Doing well, no car payment or debt aside from mortgage payments I can easily cover after putting a lot down, and am just hoping to find a long term partner before I hit... 40?

So what I'm hearing is you need to approach things like you would a job.. don't submit your resignation until you've done interviews and got another offer?

[blankall]

Originally Posted by you&me

You didn't even mention kids, but the Sephora debt doesn't only result from your wife

Somewhere earlier in the thread, someone posted that they couldn't wait until their kid was out of diapers so they could drop that expense... Does anyone else want to tell him?

Our two year old gets into the makeup bag every chance she gets. Was kind of cute the first time. One of those scenarios, where whenever she is quiet for any considerable amount of time, she's likely done something that is messy and/or expensive to resolve.