How is everyone dealing with their finances in this economy?

[Geraldsh]

Originally Posted by Sylvanfan

I am that guy who sees the massive amount of pork tenderloin or striploin roast on sale, buys it, than plays amateur butcher to portion it out and freeze it. If I splurge for a rotisserie chicken I boil the carcus after we eat most of the meat to make soup out of it.

Pretty soon I'll try and add a cold room for food storage and start canning things in the fall. In short...I'm going to have to learn to live how my grandparents did in the 50's.

Cold rooms are relatively easy to build and can hold a lot of potatoes.

[Sylvanfan]

I'm also one of those losers who has a multi-generation home. Inlaw suite for my Mom in the basement. But I did it in 2018 and I shutter to think how hard Covid would have been on her if she'd had to live alone thru that. She had a hip replacement done a few weeks ago with a day notice for the surgery. So yes it is inconvenient a bit at times and like any MIL she can be a bit tough on my spouse. But I know she's okay, I can help her not worry about inflation, and I do have a nicer house to live in. So for me the pro's outweigh the con's. With two kids it's not like I'm hosting a group orgy every week this infringes on my freedom.

[Iggy_12]

Havent seen this mentioned but giving up alcohol has saved me so much money. I stopped drinking about a year ago and its crazy how much you save. I wasnt even a big drinker but a couple drinks at dinner almost doubles your bill. Not to mention the health benefits of not poisoning your body.

Simply not going out for beers with buddies or buying a 12 pack every couple weeks really adds up

[topfiverecords]

1996:

[MoneyGuy]

Originally Posted by Sylvanfan

I'm also one of those losers who has a multi-generation home. Inlaw suite for my Mom in the basement. But I did it in 2018 and I shutter to think how hard Covid would have been on her if she'd had to live alone thru that. She had a hip replacement done a few weeks ago with a day notice for the surgery. So yes it is inconvenient a bit at times and like any MIL she can be a bit tough on my spouse. But I know she's okay, I can help her not worry about inflation, and I do have a nicer house to live in. So for me the pro's outweigh the con's. With two kids it's not like I'm hosting a group orgy every week this infringes on my freedom.

I hope you’re not referring to my post because that’s very different than the situation I described. Yours makes sense and will be more common.

[activeStick]

Originally Posted by Sylvanfan

I am that guy who sees the massive amount of pork tenderloin or striploin roast on sale, buys it, than plays amateur butcher to portion it out and freeze it. If I splurge for a rotisserie chicken I boil the carcus after we eat most of the meat to make soup out of it.



Pretty soon I'll try and add a cold room for food storage and start canning things in the fall. In short...I'm going to have to learn to live how my grandparents did in the 50's.

I'm thankful for my parents, who were immigrants to Canada from China, without an education, but still managed to buy a house through hard work and disciplined saving. From a young age, I observed how they saved money on everyday purchases and as I got old enough to understand, they drilled it in me how important saving is. Everything I was taught, I've continued to do in my life.

Buying large portions of meat, portioning and freezing (properly) goes a long way towards saving money. Going with the no-name cheaper brands for things like toothbrushes and other household supplies constantly also saves a lot of money. Going to Bulk Barn to buy spices for a fraction of the cost compared to a $9.99 bag of whatever spice from the big box grocer also saves a lot. You don't need that big bag of coriander seed for that one recipe, so buy the 3 grams you need instead.

I don't have kids, so don't have the same level of spend as people with kids, so I haven't noticed too much of a change in my spending habits, but in a way, I've always spent as little as possible on some things. I do spend on vacations because my parents always taught me to reward myself, but to save on other things that aren't that important to me. I do eat out less frequently now though as it's hard to justify the cost when most of the time, I can replicate the meal at home, even though the experience at a restaurant is hard to match.

[Strange Brew]

Originally Posted by Sliver

A caveat on the whole spending-too-much-on-vehicles thing is for the people who have a passion/interest in cars that go beyond just using them as transportation. To me, cars are marvels. They're fun, they can be beautiful, the engineering is incredible...they're my thing. Some people are travellers, some people like big houses, some people like fancy clothes, some people like art, some people collect stuff, some people spend tons of money on grooming, some people treat themselves to fancy meals, etc. etc.

We've always run a pretty tight ship as far as budgeting goes, but I've rarely been without a cool car. They bring me a lot of joy, so I do allocate funds in my budget to ensure I get to drive something that puts a smile on my face or lets me experience something automotive that I haven't before.

Getting easier now that I'm older (47), but back when we didn't have much money I definitely sacrificed travel, nice clothes, etc. to be in a car that made me feel good and proud.

If you're not a car guy, though, overspending on a vehicle seems super dumb to me, too. Lots of great vehicles will get you safely from A to B that don't cost an arm and a leg.

Also, I get that having the ability to allocate money toward a car is a luxury and privilege in and of itself. I understand there are people who aren't choosing between different cars, but are stressing about the fact that carrots aren't on sale when they get to Safeway.

Does your spouse get an equivalent luxury? Especially if they were part of the sacrifice around vacations etc.

[Sliver]

Originally Posted by Strange Brew

Does your spouse get an equivalent luxury? Especially if they were part of the sacrifice around vacations etc.

Absolutely not. She wears a potato sack around and does what she's told.

[Sylvanfan]

Originally Posted by Iggy_12

Not to mention the health benefits of not poisoning your body.

I'm similar as from September thru May I don't drink much. Might meet a friend for a couple drinks every second month and don't buy anything. Even in summer I've cut back to beers after ball games. But I don't think I spent that much before so I'm saving $50 a month or so by cutting back...$600 a year over 20 years...$12,000. But I don't really feel different so I condemn myself for not drinking more when I wss drinking more.

[Jason14h]

Originally Posted by Sliver

Absolutely not. She wears a potato sack around and does what she's told.

Now this is new the post of the thread

[topfiverecords]

Originally Posted by Iggy_12

Havent seen this mentioned but giving up alcohol has saved me so much money. I stopped drinking about a year ago and its crazy how much you save. I wasnt even a big drinker but a couple drinks at dinner almost doubles your bill. Not to mention the health benefits of not poisoning your body.

Simply not going out for beers with buddies or buying a 12 pack every couple weeks really adds up

But now you're going to live longer so the savings better cover the extra years you've added.

[Jason14h]

Originally Posted by GordonBlue

I'd rather people make posts about not caring if people steal food over most of what's posted here.
The majority of posts on this are from people who are either doing fine, or notice the increase in prices but are not really struggling. It's just mild concern about their situation and some sympathy for those who are now getting left behind. They likely don't see different in their social circle.

At least the posts about stealing food recognize that some people are at a point where no amount of budgeting or advice can rescue them. They know it's not just thugs wanting drug money or a new video game.

If I wasn't too chicken to steal because of the possible consequences, I'd be doing it right now. Next month that fear might not stop me, the way things are going.

All you're coming in here with is nothing but righteous indignation.
At least many others here realize how lucky they are, and are sharing that fact.

your concern for people that are not doing well seems to be at the level of that guy in Ontario who is offering people a place to put their tent for $500 a month, or the Kelloggs CEO saying cereal is a good dinner option.

If I was next to you at a Wal-Mart and you saw me put a loaf of bread in my bag without scanning it, would you narc me out?
None of this makes me feel good. The anxiety of my situation and shame I haven't done better is so bad it's often all I feel and makes me puke in the mornings.
So yeah I hope people are willing to do a little mental gymnastics to not care about a little theft from the companies making record profits in the food business. beats being told I could be ok if I did a better budget or just "cut back"

At least people who are centre or lean left have a little compassion and decency. Everyone I meet on the right does not give a crap, as long as they get theirs.

I wouldn’t have ratted you until the shot at people with a different political view so absolutely will be warning the grocery stores now

I haven’t seen any posts not showing empathy . Many good suggestions in here.

I’m not sure what suggestions or more empathy you expect from a message board ? No one here is responsible for your situation (I Hope /assume)

It’s a harsh reality but if you can not afford to pay your bills / sustain your life on your current income and can’t cut back there is only one option. You need more income . Unfortunently that is the only solution. I’m not saying that it is easy to do . But coming in here and lambasting people who are trying to be constructive (or apparently are right leaning) because you have it worse isn’t helping anything - yourself included

[Jason14h]

Originally Posted by Iggy_12

Havent seen this mentioned but giving up alcohol has saved me so much money. I stopped drinking about a year ago and its crazy how much you save. I wasnt even a big drinker but a couple drinks at dinner almost doubles your bill. Not to mention the health benefits of not poisoning your body.

Simply not going out for beers with buddies or buying a 12 pack every couple weeks really adds up

But then you have to face realities .imagine sitting through a Flames game sober

F that

[opendoor]

Originally Posted by CliffFletcher

Inflation has seriously messed with Canadians’ heads. Especially those who have no adult experience of anything but the ultra-low inflation rates of the last 20 years.
...
That doesn’t account for housing. But the fury over the cost of living and our recent bout of inflation seems excessive. Our parents and grandparents endured much worse for much longer.

But inflation only matters in relative terms to wage growth. If inflation is 10% a year but wage growth is 15%, who cares? It's not ideal economically, but it's not negatively impacting quality of life.

And that's effectively what happened in the '70s. Real wage growth (i.e. inflation adjusted) was actually quite high then, increasing by over 30% in a decade which is massive growth. That's not the case now, where real wage growth has been more like 5-8% over the last decade.

[opendoor]

Originally Posted by Cowboy89

What's likely more practical is that house prices don't fall in nominal dollars materially but inflation and devaluation of the Canadian dollar erode their real economic value measured in hard currency back to an equilibrium over time.

That's what tends to happen, and it already is to some extent. Real Property prices in Canada are barely above (up about 5%) where they were 7 years ago in mid-2017. And once you account for real wage growth, they're not up at all, really.

And that's what happened in the past; housing was cheap in the '90s and early 00s not because there were dramatic drops, but because prices stayed stagnant while inflation and real wage growth made them more affordable.

It's also interesting how people blame the current federal government for housing prices, but like I said, prices aren't really any higher than 7 years ago. The biggest sustained run ups in real property prices in recent decades were 2001-2008 and 2009-2017:

[blankall]

Originally Posted by opendoor

That's what tends to happen, and it already is to some extent. Real Property prices in Canada are barely above (up about 5%) where they were 7 years ago in mid-2017. And once you account for real wage growth, they're not up at all, really.
And that's what happened in the past; housing was cheap in the '90s and early 00s not because there were dramatic drops, but because prices stayed stagnant while inflation and real wage growth made them more affordable.

It's also interesting how people blame the current federal government for housing prices, but like I said, prices aren't really any higher than 7 years ago. The biggest sustained run ups in real property prices in recent decades were 2001-2008 and 2009-2017:

It's fairly easy to manipulate graphs to make trends look one way or another. There's no denying that there was a dramatic uptick in housing prices around 2020 though:

As of August 2023, the national average home price was $750,100 — a negligible $2,900 increase from a year ago, but a $179,100 jump from the summer of 2020.

https://storeys.com/canada-home-price-change-2020-2023/

It's the combination of these increases with stagnating wages and vastly increasing interest payments that are creating the crunch, in what was already a difficult market to begin with.

The Liberals themselves are acknowledging that it's an issue, making building 3.9 million more homes by 2031 a key part of their campaign:

https://www.ctvnews.ca/politics/from...-you-1.6849339

According to the budget, the Liberals are laying out “a bold strategy to unlock 3.9 million new homes by 2031,” using a string of measures with spending spread out over the next several years.

“Because the best way to make home prices more affordable is to increase supply—and quickly,” the budget reads.

Some of those measures include a plan to convert public lands into housing, a new Canada Housing Infrastructure Fund, and a top-up to the Apartment Construction Loan Program.

According to the Canada Mortgage and Housing Corporation, Canada needs to build 3.5 million homes by 2030 to restore affordability.

The Liberals are also proposing increasing capital gains taxes on amounts over $250k earned in a year.

All of this is great. However, it also highlights that the existing government didn't do enough about these issues prior to now.

[Leondros]

Originally Posted by opendoor

That's what tends to happen, and it already is to some extent. Real Property prices in Canada are barely above (up about 5%) where they were 7 years ago in mid-2017. And once you account for real wage growth, they're not up at all, really.

And that's what happened in the past; housing was cheap in the '90s and early 00s not because there were dramatic drops, but because prices stayed stagnant while inflation and real wage growth made them more affordable.

It's also interesting how people blame the current federal government for housing prices, but like I said, prices aren't really any higher than 7 years ago. The biggest sustained run ups in real property prices in recent decades were 2001-2008 and 2009-2017:

What data set are you looking at though - all of Canada? Vancouver and Toronto (and close areas) must have exceeded historical metrics when looking at affordability. I do not believe otherwise. Even smaller markets such as Montreal, Victoria, etc. are seeing upward pressures and I doubt salaries have adjusted in kind.

[opendoor]

Originally Posted by blankall

It's fairly easy to manipulate graphs to make trends look one way or another. There's no denying that there was a dramatic uptick in housing prices around 2020 though:
...
It's the combination of these increases with stagnating wages and vastly increasing interest payments that are creating the crunch, in what was already a difficult market to begin with.

I don't think inflation adjusted prices over the last 50 years is manipulation. And ultimately, the chart you posted shows the same thing. Nominal prices have risen about 25-30% since 2017, but the CPI has increased 25% in that same time period and wages have increased even more.

The Liberals themselves are acknowledging that it's an issue, making building 3.9 million more homes by 2031 a key part of their campaign:

The Liberals are also proposing increasing capital gains taxes on amounts over $250k earned in a year.

All of this is great. However, it also highlights that the existing government didn't do enough about these issues prior to now.

Sure, because people are blaming them for high housing costs. And housing is way too expensive so they should be doing something about it. But it has been way too expensive for at least the last decade. The only difference now is interest rates are higher, but they will likely come down a bit and housing prices will likely stagnate, both of which will improve affordability.

[opendoor]

Originally Posted by Leondros

What data set are you looking at though - all of Canada? Vancouver and Toronto (and close areas) must have exceeded historical metrics when looking at affordability. I do not believe otherwise. Even smaller markets such as Montreal, Victoria, etc. are seeing upward pressures and I doubt salaries have adjusted in kind.

Yeah, that's all of Canada. And yes, you're right that those places are exceeding historical metrics in terms of affordability (as is Canada overall). But that is largely a function of interest rates rather than price increases.

To me, the current situation looks a lot like 1980 and 1990. Both times saw quick reductions in nominal prices (which we've already seen over the last 2 years), interest rate drops that improved affordability, and then years of sluggish growth in real estate where value was eroded by inflation and wage growth. Maybe I'm wrong and that won't happen this time, but we've seen things like this before.

Spoiler!

[bizaro86]

Originally Posted by opendoor

That's what tends to happen, and it already is to some extent. Real Property prices in Canada are barely above (up about 5%) where they were 7 years ago in mid-2017. And once you account for real wage growth, they're not up at all, really.

And that's what happened in the past; housing was cheap in the '90s and early 00s not because there were dramatic drops, but because prices stayed stagnant while inflation and real wage growth made them more affordable.

It's also interesting how people blame the current federal government for housing prices, but like I said, prices aren't really any higher than 7 years ago. The biggest sustained run ups in real property prices in recent decades were 2001-2008 and 2009-2017:

That's Canada-wide data though, and this is a mostly Calgary-based message board. And Calgary housing prices had a long period of stagnation before the pandemic but have absolutely ripped higher the last couple of years.