How is everyone dealing with their finances in this economy?

[timun]

I am definitely spending a lot more on food and drink; I spent $6,000 last year, and this year I'm on pace to spend $7,440. A 24% increase.

Property tax is up about 7% (~$4,400/yr). I've spent about 30% more on gasoline so far; a combination of prices being about 6% higher and simply driving more. (A lot of that is for work though, which I'm reimbursed for.)


I think where I save a lot of money—or rather, just don't spend as much in the first place as many others—is driving the same beater car I've had for 15 years. I haven't had a new car payment since 2014. I'm also lucky to still get free downtown parking from my employer, a 'perk' since Covid because I'm one of only a few who're consistently in the office every single day. I'm otherwise only spending about $600/yr on gas for my commute. (That said the car definitely needs some work on the suspension; I'm sure I need all new shocks and a couple ball joints...)

I look at the spending habits of family, friends and acquaintances and I think a lot of the blame for their costs seemingly spiralling out of control has been a lack of discretion, and having to have the 'newest' and 'best' of many consumer goods. They pay for three or four TV streaming services, and watch a small fraction of it. They pay exorbitant amounts of money on their cell phones because they're always getting a new 'flagship' phone every couple years and wrapping that cost up in their monthly bills. Some of the ladies spend a ton of money on clothes, shoes and cosmetics; the lads spend a lot on golf, hockey and motorized 'toys'.




All of this said I have been reviewing my spending at a high level—I use my bank's app—and amazingly my overall spend hasn't gone up at all. The difference so far is a lack of discretionary spending on travelling. I've barely noticed at the end of the day. I realize that's a privileged position to be in.

[bluejays]

I don't want to derail the thread in any way, but long term with automation coming into play, what are governments doing to adjust? A lot of entry level jobs and more are quickly being eliminated. Where do people get their experience from? Even skilled jobs are being eliminated. I work for a large corporation and they're laying off in thousands every year with the push for this. AI is now coming into play more as the next gen as well.

[Dan02]

Originally Posted by bluejays

Fair post. I live in the GTA and pricing on housing is crazy. Add in those extra costs and food and higher taxes and not much comes in cash savings at year end. I fortune to be in the housing market but don't have kids and don't know how people with kids do it. I've not been into politics but it's been pretty apparent stock market-wise that food monopolies have been outright lying as their financial statements are killing it. During the later half of the pandemic everything went up IMO because it was a convenient excuse where people were willing to pay more for everything and every company put up their prices because they could. Salaries didn't go up that much so most of it I'm convinced, was bull####. Add to that this carbon tax which I'm not sure what it truly is, and governments getting into the marketing game on this nonsense.

https://www.thestar.com/politics/fed...8fa42a8e2.html


I'm not a doomsday person but there are some really stupid things this government has done. It starts with housing and no matter Liberal or Conservative, I don't think anyone is looking out for the little guy with rocking the cart to get housing back to normal levels.

The whole housing is an investment was the biggest disaster perhaps ever made, though perhaps in a capitalist society it was inevitable.

On the loblaws thing, even if their gross margin is 40% thats before all their warehousing/labour/logistics costs. If you don't want to believe their audited financial statements that their net margin is only 3.74% last quarter then that's a you thing. But a 3.74% net margin is not a high number for a business, it doesn't take much of a swing in the costs for you to be making a loss.

Apple on the other hand is over 25%, no one seems to take any issue with that.

Let's put it this way, if they cut their net margin in half you would see less then a 2% reduction in your grocery bill. Your $200 grocery run is now $196, you wouldn't even notice.

[malcolmk14]

Originally Posted by malcolmk14

Can your wife work? Single income families have it really tough... Even if she picks up like 3 days a week, 6 hours a day, at barely above minimum wage, that's an extra $1,500 a month to take the edge off.

To add to this your wife essentially wouldn’t be taxed on this $18,000 so it would be about equivalent to you getting a $28-30k raise.

[bluejays]

Originally Posted by Dan02

The whole housing is an investment was the biggest disaster perhaps ever made, though perhaps in a capitalist society it was inevitable.

On the loblaws thing, even if their gross margin is 40% thats before all their warehousing/labour/logistics costs. If you don't want to believe their audited financial statements that their net margin is only 3.74% last quarter then that's a you thing. But a 3.74% net margin is not a high number for a business, it doesn't take much of a swing in the costs for you to be making a loss.

Apple on the other hand is over 25%, no one seems to take any issue with that.

Let's put it this way, if they cut their net margin in half you would see less then a 2% reduction in your grocery bill. Your $200 grocery run is now $196, you wouldn't even notice.

Apple isn't a necessity. Look where the money is going with the CEO and execs taking a ton of money. It's totally crazy.

[curves2000]

Sometimes you can only control what you can control and sometimes you just need to say no.

Eating at home or making home cooked meals is a big one, for whatever reason, a ton of restaurants and bars are still really busy. It's shocking to me and I literally grew up in the restaurant business with my family. Places with garbage food, with zero value and sky high drink prices are busy, why? Also eating less meat can make a noticeable difference, so can buying what in essence is the same thing. Boneless, skinless chicken breasts for $30 kg? Like come on.

Always worth it to do an annual financial audit on almost everything in a household. Cable tv, insurance, mobile phone plan, bank plans and a lot more. Ask for discounts and if structuring things differently can save money. No point in having a larger savings account balance at 2.5% when carrying a min balance to avoid a bank plan can yield 5+% on the money.

Really dig down deep and see if you need everything your actually buying, as in really needing it. Take the cost of an item and double it, cause that is the true cost of gross income in order to buy it. People would be amazed at how quickly their daily shopping addiction of Amazon or something online can get curtailed.

Also do fractional or per use calculations on a lot of things. Those little savings add up to major money over a lifetime. One time savings are exactly onetime savings but savings in perpetuity add up to massive dollars.

You hear people say things like "Tide pods are way better for laundry" at $ .50 a load or whatever, meanwhile Tide liquid, the same thing, is priced at $.25 a load. You just halved a cost for the same product for the rest of your life. Better yet, use powder and your even better. Apply the above level of thinking to things and it's amazing how quickly you realize companies screw us with their "innovation" that then get bragged about on earnings calls with analysts to boost stock price and executive compensation.

[photon]

And really this only feels like the last part of a long trend of this.

I'm old enough to remember my dad working a blue collar job and being able to afford a wife that didn't work 2 kids a car and a house.

Or even remember when companies could afford to give good quality and good service and jobs were less work and stress because margins weren't razor thin.

It's almost like all the money is being squeezed out of the whole system so it can all go somewhere...

[fotze2]

Turns out paying huge amounts of people to not work for a long time is terrible in the long run. This was always coming.

Let’s just tax rich people more. Durrrrrr.

We have gotten what we deserve, so now take our medicine.

Every country is paying the price but we are paying a much higher one.

And it’s gonna get worse. That last jacking of the ctax. Will be a year before you start feeling that next level. But morons like a bonus check.

######ed Robin Hood Mr.T needs to go along either Marlaina Rottencrotch.

[fotze2]

Ya that’s some insomnia insanity talking.

[photon]

Originally Posted by curves2000

Eating at home or making home cooked meals is a big one

I know my wife knows how much I used to spend on eating out as she does the books, but I'm too scared to ask. I'm sure it was a LOT. Good ideas too.

[curves2000]

Originally Posted by photon

I know my wife knows how much I used to spend on eating out as she does the books, but I'm too scared to ask. I'm sure it was a LOT. Good ideas too.

It's shocking to me sometimes. I eat out a lot and go out, but this insane craze of daily delivery via skip is wild to me. Some of my friends are spending almost as much on delivery as their rent.

When your getting things like eggs/toast/coffee delivered it's wild. Countless male friends I know don't own a bbq and get steak delivered. Spaghetti and tomato sauce via Skip. This is pure stupidity and laziness to a degree that can't be explained in my opinion

[GGG]

Originally Posted by malcolmk14

To add to this your wife essentially wouldn’t be taxed on this $18,000 so it would be about equivalent to you getting a $28-30k raise.

Not really as you lose the spousal deduction on your taxes so you are taxed 25% on the first dollar earned.

[fotze2]

Originally Posted by photon

I know my wife knows how much I used to spend on eating out as she does the books, but I'm too scared to ask. I'm sure it was a LOT. Good ideas too.

You can’t just lob that eating out comment out there.

[photon]

Originally Posted by curves2000

It's shocking to me sometimes. I eat out a lot and go out, but this insane craze of daily delivery via skip is wild to me.

Yeah for sure, I draw the line there. Even before we had a family rule.. if we're ordering out, someone is going out to get it. No delivery! Then it has to be worth it!!

I don't understand how the food delivery drivers make any money either.

[malcolmk14]

Originally Posted by GGG

Not really as you lose the spousal deduction on your taxes so you are taxed 25% on the first dollar earned.

Right, right.

[fotze2]

Originally Posted by photon

Yeah for sure, I draw the line there. Even before we had a family rule.. if we're ordering out, someone is going out to get it. No delivery! Then it has to be worth it!!

I don't understand how the food delivery drivers make any money either.

I can’t tip less that 25%. I feel guilty. And that’s probably not enough. Only get things super close. Do I want a spolumbo? Yes. But that’s a 30 minute drive within a 5km radius. I think all the rich people have got us.

[Paulie Walnuts]

A lot of people are eating out because it’s actually cheaper than buying groceries and cooking at home. I literally bought 10lbs of onions, a mango, handful of grapes and 2 pears for 25 bucks at a discount grocery store. I could have bought 2 large pizzas for that much.

Unless you are buying celery which is overpriced as well, it’s still expensive to cook at home.

[photon]

$6 for a thing of strawberries. A thing that I can easily eat in one day.

$180 a month just for strawberries.

Ok I have to look at the frozen ones now.

[puffnstuff]

No mention yet of electricity costs. That needs fixed by the province.

[fotze2]

Originally Posted by timun

I am definitely spending a lot more on food and drink; I spent $6,000 last year, and this year I'm on pace to spend $7,440. A 24% increase.

Property tax is up about 7% (~$4,400/yr). I've spent about 30% more on gasoline so far; a combination of prices being about 6% higher and simply driving more. (A lot of that is for work though, which I'm reimbursed for.)


I think where I save a lot of money—or rather, just don't spend as much in the first place as many others—is driving the same beater car I've had for 15 years. I haven't had a new car payment since 2014. I'm also lucky to still get free downtown parking from my employer, a 'perk' since Covid because I'm one of only a few who're consistently in the office every single day. I'm otherwise only spending about $600/yr on gas for my commute. (That said the car definitely needs some work on the suspension; I'm sure I need all new shocks and a couple ball joints...)

I look at the spending habits of family, friends and acquaintances and I think a lot of the blame for their costs seemingly spiralling out of control has been a lack of discretion, and having to have the 'newest' and 'best' of many consumer goods. They pay for three or four TV streaming services, and watch a small fraction of it. They pay exorbitant amounts of money on their cell phones because they're always getting a new 'flagship' phone every couple years and wrapping that cost up in their monthly bills. Some of the ladies spend a ton of money on clothes, shoes and cosmetics; the lads spend a lot on golf, hockey and motorized 'toys'.




All of this said I have been reviewing my spending at a high level—I use my bank's app—and amazingly my overall spend hasn't gone up at all. The difference so far is a lack of discretionary spending on travelling. I've barely noticed at the end of the day. I realize that's a privileged position to be in.

I’m impressed with the tracking. 99% of anything I buy is unnecessary. I couldn’t live with myself if I knew the actual numbers.