Are you better off than 4 years ago?

[rob62521]

My husband and I were talking about the recent downturn in the markets...the stock market has been on the downturn for the past 5 weeks. Gas prices have gone up. Groceries likewise. More taxes are being taken out of my paychecks -- DH is on a pension and Social Security. We have a few investments that I'm sure took a hit, we are doing "OK" as far as paying bills and such. The question DH asked was, "Are we any better off than we were 4 years ago?"

Good question. I'd say no. We can still pay our bills and have some left over, but it is getting harder to save because groceries, gas and other items keep going up. Illinois increased taxes. Every time we open the paper, it seems, the legislator are asking for another tax hike or the utilities are screaming they need to increase costs.

So, are you better off than 4 years ago?

[Petunia 100]

No. 4 years ago I had not purchased my current house. I kick myself everytime I think about it.

[KiwiJo09]

I think I'm smarter about finances than I was 4 years ago, for sure. But I don't know that I'm any better off. I'm better off than many others my age and worse off than many others my age as well. But as long as I have my knowledge about finances, I'm sure I'll be fine. I always know how much is in my checking and savings accounts at all times and I haven't overdrafted in 7 months. So I think mentally, at least with finances, I'm better off.

Financially itself, I'm in a world of debt, but I'm working my way out of it.

[snshijuptr]

Four years ago I was still in college racking up debt. Since then, DH and I were married and saved more money than our currently deferred debt. We started investing for retirement in late 2009 so we caught the upswing and with constant additions, our net worth is constantly going up. We are on the path where even the debt from buying a house in two years will still keep our liquid net worth in the green.

So overall we are doing way better!

[maat55]

I'm better off not due to any government policy, but due to personal choices and better financial skills.

As for my challenges, they are greater than before making my personal progress less than it could be.

[97guns]

4 years ago i was working a 40 hour job and had 250K in the bank drawing 5% interest. today i'm 41 and retired with 4 rental homes and 190K in precious metals. i've been putting every dollar after expenses are paid into metals, around 3K a month. i need my metal portfolio to go up another 60K and i will have doubled my money.

[kork13]

Without a doubt, yes.

However, 4 years ago I was a senior in college drawing an $800/mo stipend with maybe $5k in the bank. I'm now 3 years into a job I love living in a country I enjoy making a higher salary than I need with nearly $130k in various savings and investment accounts. Only thing that hasn't changed: good friends and loving family.

[disneysteve]

We're absolutely better off than 4 years ago. We have continued to live below our means. We have continued to save a good chunk of our income, even increasing the percentage going to savings each year. Our investments have done well. Our jobs have been stable. We're all in good health. Life is good.

[minnie1928]

Most definitely better. Our net worth is much higher, and that's including the major loss we just took in selling our NJ home last month. We were able realize our dream of moving to Seattle, we never could've afforded it 4 years ago.

[LuckyRobin]

We are much better off than four years ago. DH's income has tripled and we've cleared a lot of debt. We can actually see a light at the end of the tunnel...and it's not a train.

[TBH]

We have more money than we did 4 years ago. We also have much higher fixed expenses because we sold our starter house and bought our dream house. I miss the old mortgage payments, that's for sure.

But I also managed to change careers into something I love, our son finished preschool and is now in public school so we don't have tuition payments any more, my spouse is still in the same job and still mostly enjoying it. Our biggest problem is I'm partially disabled and can't work as much as I'd like to, but mostly we're doing okay, and yes, I'd say it's better than it was 4 years ago.

[MonkeyMama]

No, we are not better off than 4 years ago.

Our savings has doubled, and that is fine.

But, the value of our home continues to fall faster than we can save. So, our net worth (conservative - did not even use full fair market value of home to track net worth - at peak and such) - the net worth has stagnated the past 4 years.

OF course, being in California, we could be so much worse off. We still have over $50k equity in our home, etc. Good financial choices mean overall/big picture stagnation, but far more in savings than we did 4 years ago.

Overall compensation has also decreased. My career choice went from "as solid as can be" and huge raises, accordingly, to more shaky ground and lower expectations of compensation. We seemed un-hit the first few years of the recession, but is starting to affect us. There are few job opportunities of any kind, which will maybe leave my spouse under-employed or unemployed longer than we really want or planned.

Expenses are kind of ho hum. Outside of health insurance, we have not noticed any inflation in our expenses. So, I don't feel like our budget it tighter or anything in that regard. We've had a run of bad luck with medical expenses, etc., which doesn't help. All our financial whoas revolve around healthcare. Well, healthcare and housing.

[Scanner]

Wow. . .sooooo hard to assess.

This question is generally asked at the end of a Presidential term to see whether or not you may or may not vote for the Chucklehead a second term or not. Ironically, sometimes people will vote for you again whether or not you are doing well or not ("Truman Beats Dewey" "Obama Beats Romney"). So Americans are not as shallow as many think they are and campaign managers can miscalculate.

But I digest. . .

It's so hard becuase I went through an acrimonious divorce, which is financially devastating.

In the end though, I really did get a lifestyle that I like (simple is the best I can describe it). I was driving through a nice neighborhood yesterday with a woman I am seeing and she said, "I wouldn't mind having that house." I really looked at it and said, "I really don't want that house."

And I really didn't. But I am glad some people do, honestly. . .it keeps our economy going.

But I just see taxes, more taxes, high utility bills, and more taxes. Lotsa upkeep too.

Financially, I made a killing in silver in my Roth, so my net worth is up. My business is looking up due to some legislative changes that my profession got pushed through in NJ that got us out of 1950 and into 2010. I am borrowing about 5K to expand it further, actually getting a design co. to come in and make it a "home" for me and gear it more towards nutrition.

So yes, in the end, I think I am better off than I was 4 years ago. Of course, there are still problems. . .mainly I face the challenge of shared single parenting and I don't know how I am going to afford 3 college educations.

But there is a parable. A man climbed to the top of the mountain and was unhappy. He asked the guru why he was unhappy and she said, "Your problem is you have 85 problems in life and most people only have 84 problems."

He replied, "Oh great, I get to have an extra problem. That just figures! What is my extra problem?"

Tte guru replied, "Your extra problem is you think you shouldn't have 84 problems."

So, yes, despite my problems, I am better off. And I owe it all to Obama

(just trying to get Maat's goat there, ha, ha)

[maat55]

Originally Posted by Scanner

("Truman Beats Dewey" "Obama Beats Romney").



(just trying to get Maat's goat there, ha, ha)

You do know that your comments above will be my signiture after the election?

[Scanner]

LOL. . .honestly, I"ll admit that is the only thing Obama has going for him right now. . .the people like him (well, he took out OBL too).

That's the only reason Truman won too. . .the people had every reason to vote for Dewey but they voted for Truman instead.

[snafu]

Another country, similar problems since the USA is our biggest client. Recent election, same government but with higher stability. Income flat, food, transportation, utilities, and every government program higher on all 3 levels municipal, provincial, federal [backdoor taxes] Property value down 20% from 2007 speculative driven highs but improving monthly. All but one investment has moved beyond 2007 valuation, an American Value Fund is still lagging but I've been buying to even out highs.

I trying to maintain the same category spending levels as 2010 but failing. We're not having so many dinner parties to both cut back on work and costs but it's BBQ season and the numbers will likely escalate. I've declined work offers and enjoying life a lot more.

[bennyhoff]

These questions are always intersting to consider, especially when the answer isn't obvious.

If I look at my house, the "value" has gone down, but really, that was always not a real worth, and I wasn't in the market to sell, and I bought before the inflated value, sooo... its value to me (as a place to live) never changed. But four years ago I owed over $40,000 on it and was paying over $400 in interest each month. Today its paid off and I pay no interest to anyone. So for my house, I feel I'm doing much better.

As for retirement accounts, the market has been haywire the last four years. I didn't bail when things went south, and my "personal return" was negative 33% in 2008, but positive 65% in 2009, and a nice 25% for 2010. With my continued investments I've gone from 100,000 to 200,000 in four years, so I think I'm doing better today.

For my job, I've had a pay freeze since 2009, but no pay loss, and the employer is putting more into keeping the pension fully funded, so I'll call my overall wages better today than 2007.

Physically the body is four years older, with extra aches, but I've lost 25 lbs, and gained a good amount of muscle, so I think I'm doing better there.

And then there is socially. Back then I had not much going for myself, today I have a wonderful girlfriend.

So yes, I am doing much better today than four years ago (sorry for the long list, but its the only way I can see to really figure out how I have progressed)

[Breton Wench]

Originally Posted by bennyhoff

These questions are always intersting to consider, especially when the answer isn't obvious.

So true. You can only look back and weigh up what ifs and why nots........
Anyway, we are WAY better off because we left Ireland. In the middle of the Celtic Tiger boom we were at the bottom of the heap, with DH getting maybe 3 days a week work, so we left. Amid much head shaking and people telling us we were crazy and that the only way was up in an economy like this......

We now have an affordable home, DH could work six days a week if he wanted (doing exactly the same job - just in a different language), we now look at bills coming in without terror and think back to a time when we could barely afford the rent some months. Love our new country, we have finally got pension plans together and are glad to be in a society where houses do not rise to lottery win type prices.

[bjl584]

Short answer, yes.

[wincrasher]

I'd say yes, much better.

My business is booming, so I'm making more money than ever.

Have made healthy changes, so I'm feeling better these days.

Feel better mentally, because of the first two.

Definately noticed the cost of living has gone up alot, even though I'm not really impacted by it. Fuel, food, property taxes, etc, are really up all around, so I see alot of people I know sweating about these things. Not to mention what is happening with college tuitions.

What really worries me is the dearth of safe investments with reasonable returns. Unless you are chasing the next bubble (metals anyone? Oil?) there isn't much that won't keep you up at night.