Are you better off than 4 years ago?

[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.

[bennkar]

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]

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.

[feh]

Yes, definitely. We were very fortunate though - we pulled a lot (maybe most) of our money out of the market right when it peaked in 2007 to buy a house. Then put a bunch back into the market when our previous house sold, a couple months after the market had bottomed.

[Cassius King]

Financially, I have less debt than I did. I have more investments, money saved than four years ago as well.
However, mentally and physically, this economy is starting to take it's toll. My company was bought out last summer, so there's all kinds of "thinning" out and change. The career shake up has hit me both emotionally and physically. The stress is hard to escape and I've gained 20 pounds in the past year. I feel like I'll be dead before things turn around. Think I need to ignore everything and let the cards fall where they may and just take care of myself. Tough to say, when I've got a family to take care of.
It's hard to stay positive when the economic outlook doesn't look to be improving anytime soon.

Time to have a beer and numb reality.

[DebbieL]

Good question. We are definitely better off, but that is only because we are not in the same jobs we had back then. I've continued my schooling (becoming accountant), and that has helped my earning potential. I earn about 150% of what I earned 4 years ago. DH (a chef) is now cooking at one of the oil sands camps in Alberta, so he's earning about 300% of what he was 4 years ago (they pay insane wages in the oil and gas industry here).

Cost of living is going up in leaps and bounds though. Groceries are through the roof, and gas is about $1.32 per litre here currently (just over $5/gallon). If we were earning at our old level, considering the price of everything else we would be much worse off than we were 4 years ago. We are very fortunate to be in much better positions.

[My English Castle]

Our retirement accounts are about where they were four years ago, not much higher despite our regular contributions. It's home values that are hurting us also.

[KTP]

Ask me in August when/if there is a technical default on US treasuries and the DOW is at 9000.

*right now* we are better off than 4 years ago.

[maat55]

Ask me in August when/if there is a technical default on US treasuries and the DOW is at 9000.

*right now* we are better off than 4 years ago.

Are you expecting that the government will stop taking in revenues completely? Just because you do not raise your borrowing does not mean you cannot pay your prioritized bills.

All the government has to do is just stop spending more than it takes in. Personally, I hope we do default, that would force us back in line.

[kork13]

.... Not to mention what is happening with college tuitions.

Ah, that's right -- I nearly forgot about this little fact. I'm a about 6 months into (slowly) working on a master's program, and in April my university raised the tuition fees by a whopping 30% per credit! ouch... Doesn't break the bank (only taking one class at a time), but looking at it from a numbers perspective, it's a little startling.

[KTP]

Are you expecting that the government will stop taking in revenues completely? Just because you do not raise your borrowing does not mean you cannot pay your prioritized bills.

All the government has to do is just stop spending more than it takes in. Personally, I hope we do default, that would force us back in line.

No, but I would expect it to shake investor confidence in the US as a safe haven. It would only take a nudge to push the market into a freefall and get us back to something like DOW 9000.

I would be ok with that *if* this time the market would stay at that level for awhile and return to sanity. No 50 billion valuations for facebook, groupon ipo, lnkd pe of 1000+, a mexican fast food joint selling for pe 50, etc. etc. It would make investing so much easier if we dropped 3000 points and stayed there awhile.

[maat55]

No, but I would expect it to shake investor confidence in the US as a safe haven. It would only take a nudge to push the market into a freefall and get us back to something like DOW 9000.

I would be ok with that *if* this time the market would stay at that level for awhile and return to sanity. No 50 billion valuations for facebook, groupon ipo, lnkd pe of 1000+, a mexican fast food joint selling for pe 50, etc. etc. It would make investing so much easier if we dropped 3000 points and stayed there awhile.

Personally, I was hoping it would move up slower than it did. Quick moves usually have corrections.

[asmom]

Absolutely. 4 years ago I was working at a job that was not very challenging and I was not being paid well. I was so anxious all the time that I was having heart palpitations. Today I am working in a position that is not only challenging but often frustrating and that's okay. It doesn't hurt that my income has increased by 75% so I have been able to pay off short-term and long-term debt much quicker than anticipated as well as ramp up my savings.

Also, my daughter will be starting college in a few weeks and I am excited for her as well as a little uncertain what life will be like without her.