Is the Economy good or bad?

[Rukh O'Rorke]

In my case - expenses are certainly going up much more dramatically than my paycheck!

I think I will level out once I get used to the student loan payments again to be able to pay all the bills, max 401k and HSA, eat well enough for me and pets, and not have much to anything left over. My side biz money I will rely on for taxable savings, vacation, holidays, and any extras. As long as I can max my ibonds and take a nice vacation in 2024 with the RI money, and Christmas, etc. I will be satisfied with my situation.

While given my current position (owning this home for nearly 20 years, not super HCOL, and my current job and not so extravagant ways) I think I should have loads of money for both taxable saving/investing and occationally somewhat extravagant spending here and there...just money piling up a bit for extras, that isn't the reality.

Will see how 2024 pans out, but as I mentioned on other threads, I'm back to watching balances and worrying payday won't hit the checking account soon enough! I think that is just a temporary blip as I work through some extra expenses (med and vet) + the student loans repayment resumption.

But I think things are getting tougher for everyone. Housing is so out of reach for too many and the greedy corporation has gone past a cliche to a crisis in the US. I'm not sure where the answers are for us, honestly.

[Tiny]

Nov 12, 2023 2:30:17 GMT -5 ❤ mollymouser ❤ said:

He has a 401k with Vanguard from his new job and it's not doing much (we selected a target year retirement fund for 2030) but the Market ebbs and flows, as always.

I moved some of 401K money to a 2030 Target fund (right before the Pandemic) as I was trying to coordinate my 401Ks and Roth AND I foresaw a possible "job loss" which would make me be "Retired Early".

The 2030 Target fund (since it's only 6 years away) is in it's "preserve wealth" stage... so more of the money is invested in safe options. I am not expecting the money in this fund to grow in leaps and bounds. Hopefully it's stays steady/gains slowly (I'm hoping it keeps up with inflation and doesn't loose much. )

If you are looking for some growth - perhaps a 2035 or a 2040 (10 and 15 years out) fund would be more appropriate.

I've been debating switching to a 2035 or 2040 fund... as I'm still working (at least for 2 more years - if I stay with my employer- the Pension plan I am vested in gives me the Biggest and Best payout if I stay employed 'til I'm 62 (working longer than age 62 doesn't make my pension nicer/better/bigger). It's like a golden chain...)

[Tiny]

I can say I've finally noticed the uptick in grocery prices. I've finally gotten thru all the "stocked up" staple kind of stuff in my pantry (purchased between 6 months and 12 months ago). I've been watching for "sales" or "deals" in order to "stock up" again... and even the on sale/deal stuff is MUCH more that what I paid a year or 6 months ago.

I can't believe I just paid $2.00 a can for Progresso soups. I'm not a big canned soup eater - but I like to keep a few cans on hand - incase I get sick and need a quick hot something that I'm probably not going to eat all of it. And a canned soup (with some crackers or toast) usually does the trick -- and there's not a lot of prep, dishes, or clean up involved.

I've been keeping an eye out for a sale over the last month and $2.00 was the best deal.

Last year I scored the cans of soup for $1.25 each. And before that I could reliably get cans for .90 each (for years and years).

I think I was "insolated" from much of the grocery inflation because I don't buy much meat and don't buy a lot of snacks or "quick meal" kinds of things. I did notice the giant jump in fresh veggies/fruit prices - but the "in season" stuff dropped back to just above what I use to pay. With winter here - I think I'll be paying much higher prices for fresh fruit/veggies going forward. I have been paying more for Frozen Veggies (but it's only been a quarter more per bag... so a couple bucks more a month didn't really pinch much.)

[jerseygirl]

Progresso soup here usually about $3 can when not on sale. Also Campbell’s chunky. Chips about $5 bag not buying at those prices
For fresh fruits notice more on apples , most are about $2.49/pound. Ooof!!

So I try to stock up when on sale. Pasta about $2 box and jars of sauce up about $1 jar
Reports are inflation is decreasing (a lot from 9% now about 3%). BUT the 3% would be in addition to the already increased prices
Not good especially for lower income folks

[tractor]

Nov 13, 2023 12:47:04 GMT -5 Tiny said:

Nov 12, 2023 2:30:17 GMT -5 ❤ mollymouser ❤ said:

He has a 401k with Vanguard from his new job and it's not doing much (we selected a target year retirement fund for 2030) but the Market ebbs and flows, as always.

I moved some of 401K money to a 2030 Target fund (right before the Pandemic) as I was trying to coordinate my 401Ks and Roth AND I foresaw a possible "job loss" which would make me be "Retired Early".

The 2030 Target fund (since it's only 6 years away) is in it's "preserve wealth" stage... so more of the money is invested in safe options. I am not expecting the money in this fund to grow in leaps and bounds. Hopefully it's stays steady/gains slowly (I'm hoping it keeps up with inflation and doesn't loose much. )

If you are looking for some growth - perhaps a 2035 or a 2040 (10 and 15 years out) fund would be more appropriate.

I've been debating switching to a 2035 or 2040 fund... as I'm still working (at least for 2 more years - if I stay with my employer- the Pension plan I am vested in gives me the Biggest and Best payout if I stay employed 'til I'm 62 (working longer than age 62 doesn't make my pension nicer/better/bigger). It's like a golden chain...)

My pension is the same, in fact they tell us to maximize your payout, retire at 62. I'm or that far away, and really hope to keep working beyond then. I love my job and will have lots of interest in working until 70-ish, out of want, not need.

I work in a recession proof industry, so while my expenses have gone up, my salary has increased as well. I realize I am one of the lucky ones.

[countrygirl2]

We had rentals but everything for them was increasing. Than the last year the quality of the rentors has gone down. For the first time in all the years we have rented, we had 2 not doing well on paying rent and left the places a mess. So we had lots of work to do and money to spend. Since we are 77 we were planning on starting to sell anyway. We ended up lucking out I guess and sold 3 this year, 1 last year, and have 2 more to sell. One is just a mobile and we made good money on it, the other is his folks house and plan to sell in the next year or two. We could rent the mobile in a heart beat and add probably $500 a month to our income, but I cringe renting it. Just a different kind of folks rent them and I don't want to go through the stress of dealing with them anymore. We just read tonight they are talking about a lithium battery plant coming in here with 643 jobs. The house market here now is beyond tight and rents have really increased. But the current folks here just don't make enough to cover increased rents. We got good prices from the houses and we got out.

Now home ownership here is very high, always has been and the kids with parents help or degrees and 2 family workers are doing well.  Because the market here is so tight we are seeing lots of new builds Also there is redevelopment in the county and 40 new homes going in.  A couple of years ago 40 new duplexes went in, low income, rented fast as they could build them. I'm seeing the new homes run around $230k or so which is a bargain compared to other markets. Nice smaller 3 bedroom homes with 2 baths and a 2 car garage. They seem to be selling well even in this interest environment. But our realtor said ours the week before was the last closing she had coming up, she said sales are stopping, so guess its not so good afterall.

We were going to buy in Washington state and did buy a modular in an over 55 park. Hubs did not want to because we don't own the land, but we did and now happy we did. We are not sure we want to spend the kind of money they want for houses there.  I have been looking for months and like others say a $200k or even higher needs thousands of dollars worth of work. We can do it ourselves but not sure we want to.The cost is just terrible and now I see sales slowing down there and not so many going on the market. Of course that also affects what we can get for our house and last rental. So again its good and bad. We may just end up keeping the place we bought as a summer place and live in it. Awfully small though at 1100 sq ft.

Food prices are crazy, I don't know how families are eating but again you see restaurants packed, drive thrus full and people complaining all the time. We have cut back on all kinds of food, but partly because we we are trying to keep weight down and don't need a lot of it anyway. I buy more sales and less of many things.

They do Brown Baggers here where kids take food home for the weekend. They said it has increased by over 100 kids over the last year. I can understand that happening. 

We are not hurting, but still we have cut back. Our dollars are certainly not going as far. But then we are keeping 2 places so understandable. I do feel sorry for people who can't afford a home now and hope this does not continue. What worries me is this carrying over into the political arena and ending up with someone like trump that will crash it all.

And yes corporations are taking advantage and its killing people. I am happy to see some wages going up but in most cases it is not enough. But we need so many changes in this country I'm not sure of the outcome. But yes, the economy is good and bad.

[soupandstew]

I LOVE this thread!  For me, one of the best things about YMAM is seeing all the different perspectives on any situation based on the poster's life stage and location.  Those here who are in their earning/saving stage have a different viewpoint than those who are a different stage, perhaps retired.  Some live in HCOL and some in LCOL.  

We live well below our means as our home is paid for and property taxes minimal.  I can see the price creep in groceries, especially in produce and poultry.  Because of comments here, I did notice the $2.99 per can Progresso soup yesterday   Also, yesterday's $7.99 per pound of ground turkey was a stunner, and it will only get higher as many birds are being culled due to bird flu outbreaks at commercial producers.  Locally, gasoline is down-I saw $2.55 per gallon for cash.  

The time ahead when we transition from our home to an apartment will be a different story as we will be subject to frequently rising rental rates.  Higher mortgage rates are actually a boon for my community as our houses are still very affordable even with a 7% mortgage.  I can now potentially get much more from selling this house than anyone ever could have imagined.  

[countrygirl2]

I went to The Dollar store yesterday and got some canned goods quite a bit cheaper. I shopped 3 place, grocery, Walmart, and Dollar. Did ok considering, if I go to the city I also add Big Lots, though they have gone up a lot too.

[The Walk of the Penguin Mich]

I still shop the sales mostly.  Recently, the local store has had pork tenderloin, chuck roasts and chicken buy one, get one free so I’ve been taking advantage of that.  

When stuff that we buy and use regularly goes on sale, I do try to stock up.  Barilla pasta is the one price I watch all the time.  It used to be $1.29/lb and I’d stock up when it was 5/$5.  Now it is $1.79/lb and the most recent sale has been 2/$3.  Pasta winds up in the meal rotation about every 2 weeks in one form or another.  

Speaking of which, m6 suggestion of fettuccini Alfredo with chicken and broccoli got voted down last night.  I made butter chicken.  It was one of my better batches, and I think it’s because I’m now using the spices I bought in India.