How is everyone dealing with their finances in this economy?

[Monahammer]

Proper budgeting and two working adults in a family is a must, but my family has weathered inflation over the last few years without bumps. Still room for our yearly vacation in the budget. Had to cut down on eating out (1 less per month) and was fortunate to have the car payment disappear at the same time the mortgage is going to increase... Pretty much a wash.

We are not saving like we used to though- so there's where we were hit. But I have a pension... So I think we will be ok.

Budgeting is the biggest part. But it also reduces anxiety so much. I don't even flinch if I have a $800 Costco trip because I know it fits within the budget.

[chemgear]

Originally Posted by Monahammer

Budgeting is the biggest part. But it also reduces anxiety so much. I don't even flinch if I have a $800 Costco trip because I know it fits within the budget.

That's a lot of prime rib and lobsters.

[Muta]

Another tip is managing portion sizes. Meals should be approximately the size of a closed fist, no more. In addition, eat until you're not hungry; not until you're full. The dual benefit of this not only are you saving on food (and money), but your belly will thank you when it's much flatter a couple weeks later.

[undercoverbrother]

Originally Posted by Muta

Another tip is managing portion sizes. Meals should be approximately the size of a closed fist, no more. In addition, eat until you're not hungry; not until you're full. The dual benefit of this not only are you saving on food (and money), but your belly will thank you when it's much flatter a couple weeks later.

Our food issue is my 18 yr old son.

He is taking in around 3500/4000 calories a day.

It is ####ing crazy!

[PepsiFree]

Originally Posted by Monahammer

Proper budgeting and two working adults in a family is a must, but my family has weathered inflation over the last few years without bumps. Still room for our yearly vacation in the budget. Had to cut down on eating out (1 less per month) and was fortunate to have the car payment disappear at the same time the mortgage is going to increase... Pretty much a wash.

We are not saving like we used to though- so there's where we were hit. But I have a pension... So I think we will be ok.

Budgeting is the biggest part. But it also reduces anxiety so much. I don't even flinch if I have a $800 Costco trip because I know it fits within the budget.

One of the biggest benefits tbh. Anxiety is usually related to the unknown, and all budgeting is, is ensuring you know everything about your financial situation.

I’m lucky (own home, own vehicles outright, double income no kids) but I’ve also been unlucky (pandemic set me back financially for years to come, made serious financial mistakes early on). Still, I am relatively unbothered by inflation and feel no anxiety about my financial situation.

I know what’s coming in and what’s going out. If the balance is such that I can’t afford to live how I want, I make a change somewhere in the equation.

There are people that have it a lot harder than I do who make it work. So, I try to keep that in mind.

[undercoverbrother]

Originally Posted by PepsiFree

There are people that have it a lot harder than I do who make it work. So, I try to keep that in mind.

This is a useful approach across your life.

There are time my job is fukcing hard, but I remember I get paid well and there are people working worse jobs for less $$ (I also like to remember I have worked those jobs).

In a great global context, we all have it pretty ####ing easy.

[Johnny Makarov]

Originally Posted by Sliver

OMG I'd rather starve than pig out on radishes. That's a nasty-ass vegetable. Perhaps the worst of them all.

Beets

[undercoverbrother]

Originally Posted by Johnny Makarov

Beets

Bears

[Bigtime]

Originally Posted by undercoverbrother

Bears

Battlestar

[ThisIsAnOutrage]

Originally Posted by PepsiFree

One of the biggest benefits tbh. Anxiety is usually related to the unknown, and all budgeting is, is ensuring you know everything about your financial situation.

I’m lucky (own home, own vehicles outright, double income no kids) but I’ve also been unlucky (pandemic set me back financially for years to come, made serious financial mistakes early on). Still, I am relatively unbothered by inflation and feel no anxiety about my financial situation.


I know what’s coming in and what’s going out. If the balance is such that I can’t afford to live how I want, I make a change somewhere in the equation.

There are people that have it a lot harder than I do who make it work. So, I try to keep that in mind.

Lost the bitcoin wallet, eh. Tough break.

[#22]

Originally Posted by Bigtime

Battlestar

Galactica

[Monahammer]

Originally Posted by chemgear

That's a lot of prime rib and lobsters.

Lol- virtually none... my wife and I are pretty efficient. We do one costco trip beginning of month and one superstore mid month to basically just restock veggies/fruit and odd items.

Total grocery/home product/ pet food bill over a month is roughly 1200 for our family of 4.

Yeah, I agree Pepsi. The anxiety reduction is the biggest benefit of budgeting for sure. It was the main reason I started doing it, and I am glad I got into the habit. My wife and I go so far as to record individual purchases in a spreadsheet of spending categories- it is a small bit of extra work, but once you get used to it its a great tool for not spending over in categories and just being cognizant each time you spend money.

The other benefit of the budgeting though is that it allows you to get real with yourself. It's easy to let small purchases add up, but when you confront them with the realization that you spent $400 on starbucks in a month you change your mindset pretty quick in my experience.

Also, you're damn right. My wife and I spend a lot of time talking about how grateful we are to be in our position, and that also helps us feel good instead of filling that void with capitalism... Though that is sometimes an easy way to fill that void lol.

[Monahammer]

Originally Posted by undercoverbrother

This is a useful approach across your life.

There are time my job is fukcing hard, but I remember I get paid well and there are people working worse jobs for less $$ (I also like to remember I have worked those jobs).

In a great global context, we all have it pretty ####ing easy.

Amen. It is a great life we lead. Just saying this out loud to yourself and loved ones sometimes has magnificent effects, and I think people ignore that. It's not bull#### about intentionality, it's just realizing and being grateful and taking yourself off the rat race treadmill for a second to breathe.

[blankall]

Originally Posted by I-Hate-Hulse

I don't think it can be understated how much getting into a new/used car(s) every 3-4 years contributes to the destruction of personal wealth. Losing 20-30K (on a moderately price vehicle) in depreciation every 4 years is incredibly expensive, but lost on so many in my circle of friends. Luxury German vehicles in particular....

Buy something reliable, keep it 10+ years, rent a truck if you really need it 5x a year. Avoid debt if possible.

Buying used isn't always the way to go. I leased a Toyota Matrix in 2009, which meant I could write off a significant portion of the lease payment. Then I bought out the lease.

The car was, not due to our negligence, written off in an accident last year. We also had a new baby, so needed something bigger (that could accommodate both a car seat and stroller). Ended up with a VW Taos. At this point the Matrix was 14 years old. It's a shame, as the vehicle probably would have lasted another 15+ years.

When buying the new vehicle, the lightly used ones were actually slightly more, and we had to go on a waiting list to get the new one. With the new vehicle, you get the warranty, so you're looking at almost no maintenance for the first 4 years or 60k. If you buy a 7 year old vehicle, for example, you're running the risk of getting a lemon.

Anyways, long story short, you can come out ahead buying new. The key is, as you say, get a vehicle you plan to have for 15 years, not 3-4. Buy from a manufacturer that is known for reliability and holding value long term. Also, only buy within your means. Look at interest rates, on any lease or financing payments, and not just total monthly payments. It's baffling how many people drive away from a dealership with a nice vehicle simply because they can afford the monthly payments right now, with no concept of how much money they are actually spending on the vehicle, interest payments, etc..

[Paulie Walnuts]

Here is the Canadian food guide.

https://food-guide.canada.ca/en/

Everything on that dish is expensive, so unless you are eating just celery and spinach the cost of food is high.

Budgeting sounds great, but not a lot of people know how to do it, and its not as easy as it seems. A lot of randomness can throw a budget off and things people don't plan for. It's probably ideal to have in your budget some repairs and maintenance if you own your home, replacing a phone because they can break, replacing a car because they can die.

People also don't budget for oil companies gouging us at the pumps, or getting gouged by "fees" by these energy companies on our bills.

[Torture]

^^
Don't disagree that you need to look at the numbers and used vehicles are crazy pricey right now, but how much maintenance are you really doing / saving on a brand new vehicle within the first 4 years?
It might give you peace of mind which could be worth it, but 9 times out of 10 that warranty covers nothing because you typically don't have to do major maintenance on a vehicle within the first 60k anyways.

[looooob]

Originally Posted by Muta

Another tip is managing portion sizes. Meals should be approximately the size of a closed fist, no more. In addition, eat until you're not hungry; not until you're full. The dual benefit of this not only are you saving on food (and money), but your belly will thank you when it's much flatter a couple weeks later.

I know you are more or less simplifying but the 'closed fist' etc I think is more for a portion of the meal, not the entire meal

[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.

[GordonBlue]

Originally Posted by cam_calderon

Oh great, now we've got the posts justifying stealing food. The mental gymnastics in that post are gold medal-worthy.

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.

[blankall]

Originally Posted by Torture

^^
Don't disagree that you need to look at the numbers and used vehicles are crazy pricey right now, but how much maintenance are you really doing / saving on a brand new vehicle within the first 4 years?
It might give you peace of mind which could be worth it, but 9 times out of 10 that warranty covers nothing because you typically don't have to do major maintenance on a vehicle within the first 60k anyways.

By the time you get beyond that first 50k or so, you're looking at all sorts of medium sized maintenance issues like brake pads, transmissions, tires, batteries, etc...These are a guarantee. Then there's the risk of the big ones.

For example, if you're buying a 5 year old Honda CRV for $28k, you're not always better off saving the $10k on the new one. You have to factor in the expenses, the fact the vehicle will likely last 5 years less, as its 5 years older, plus the fact the resale value will be lower when you do trade it in.